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Housing Benefit and Council Tax Benefit overpayments guide
The Housing Benefit and Council Tax Benefit overpayments guide has been archived.
The new Housing Benefit overpayments guide is at:
https://www.gov.uk/government/publications/housing-benefit-overpayments-guide
HB/CTB Overpayments Guide
Amdt3 September2010
Classification and recoverability
Contents
Classification and recoverability
Classificationsofoverpaymentsandsubsidy...............................................................2.00
Overpaymentssubsidytable...................................................................................2.10
Explanationsoftheclassifications...............................................................................2.30
Eligibleoverpayments..............................................................................................2.31
Fraudoverpayments...........................................................................................2.31
Claimanterroroverpayments.............................................................................2.35
ReportingchangeofcircumstancestodifferentdepartmentsintheLA....2.36
Nodetailsprovidedofwheretoreportchangeofcicumstances............2.36
Detailsprovidedofwheretoreportchangeofcircumstances................2.38
‘Other’overpayments.........................................................................................2.39
LAofficialerrorandAdmindelayoverpayments..................................................2.50
Whichclassificationisappropriate?....................................................................2.53
Suspensionwhenfurtherinformationisneeded..............................................2.70
Sufficientinformationprovidedbyathirdparty..............................................2.90
LAofficialerror/Admindelaysubsidythreshholds..........................................2.100
Departmentalofficialerroroverpayments..........................................................2.110
IOWProcesses.....................................................................................................2.116
ClaimantsinreceiptofPensionCredit..............................................................2.130
Technicaloverpayments........................................................................................2.140
CTB-CTliabilityceases......................................................................................2.145
Rentrebate-rentalliabilityceases...................................................................2.146
OverpaymentsarisingfollowingthesuspensionofCTB.................................2.148
ExcessCTBarisingfromareductioninCTliability...............................................2.170
IndicativeRentLeveloverpayments.....................................................................2.171
Duplicateoverpayments........................................................................................2.180
Morethanoneoverpaymentcategory................................................................2.181
Isanoverpaymentrecoverable?................................................................................2.190
Wastheoverpaymentcausedbyamistake?.......................................................2.191
Didanyonecontributetothemistake?.................................................................2.194
Couldanyonereasonablyhavebeenexpectedtorealisetheywerebeingoverpaid?....................................................................................2.210
Whenshouldarecoverableoverpaymentberecovered?........................................2.230
HB/CTB Overpayments Guide
Amdt3 September2010
Classification and recoverability
2.00-2.03
Classification and recoverability
Classifications of overpayments and subsidy
2.00 LocalAuthorities(LAs)receivesubsidyof100%forthegreaterpartofthequalifyingbenefitexpendituretheyincur.However,inareasofexpenditurewhereLAshavethemostscopetomonitorandcontrolcosts,lowerratesapply.OneareathatattractslowerratesofsubsidyisoverpaidHousingBenefit(HB)andexcessCouncilTaxBenefit(CTB).
2.01 It is important that each HB/CTB overpayment identified is classified and a record of itmaintainedsothecorrectrateofsubsidycanbeclaimedandinformeddecisionscanbemadeonrecoverability.
2.02 Thesubsidyarrangementsalsoact,atleastinpart,asanincentiveforLAstoclassifyandrecoveroverpaymentscorrectly.InmostcaseswhenoverpaymentsarerecoverableanLAmaykeepboththeamounttheyrecoverandthesubsidy.
Example 1
Claimantoverpaid(Claimanterror)3May2010to30May2010forfourweeks
@£50.00 =£200.00
LAclaimssubsidyof40%(Claimanterror) =£80.00
LArecovers =£200.00
LA allowed to keep £280.00
Example 2
Claimantoverpaid(Fraud)5July2010to18July2010fortwoweeks
@£40.00 =£80.00
LAclaimssubsidyof40%(Fraud) =£32.00
LArecovers =£80.00
LA allowed to keep £112.00
2.03 ItisimportanttorememberthatmostHB/CTBoverpaymentsareareaswhereLAsdonotreceive100%subsidyfromtheDepartmentforWorkandPensions(DWP).Overpaymentscanbecostlytorecover.Money lost throughreducedsubsidyandthecostsof recoveringoverpaymentscomesfromtheLAsoverallbudgetandthatmeanstherearefewerfundsavailableforotherservices.
HB/CTB Overpayments Guide
September2010 Amdt3
Classification and recoverability
2.04-2.10
2.04 Itisimportanttoensurethatinadditiontopreventingoverpaymentsoccurringeveryeffortismadetorecoverthem.
2.05-2.09
Overpayments subsidy table
2.10 Overpayment type Benefit type Subsidy rate
1. Eligible overpayments AllHB/CTB
• Fraud •40%
• Claimanterror •40%
• Other(alloverpaymentsthatdonotfallinto •40%anyoftheothercategories)
2. LA official error and Administrative(Admin) AllHB/CTBdelay overpayments
• totallevelofoverpaymentsdoesnotexceed •100%lowerthreshold
• totallevelofoverpaymentsisgreaterthan •40%lowerthresholdbutdoesnotexceedupperthreshold
• totallevelofoverpaymentsexceedsupper •Nilthreshold
3. Departmental official erroroverpayments AllHB/CTB 100%not recovered
4. Departmental official error overpayments AllHB/CTB Nilrecovered
5. Technical overpayments (benefit credited in RentRebateandCTB Niladvance of entitlement)
6. Excess Council Tax Benefit arising from the CTB Nilreduction ina claimant’s Council Tax liability
7. Indicative Rent Level (IRL) overpayments not RentAllowance 100%recovered (overpayments arising because an IRL exceeded the maximum rent payable)
8. IRL overpayments recovered (overpayments Rent Nilarising because an IRL exceeded the Allowancemaximum rent payable)
HB/CTB Overpayments Guide
Amdt3 September2010
Classification and recoverability
(2.10) Overpayment type Benefit type Subsidy rate
9. Duplicate overpayments UsuallyRentAllowance, 25% butcouldbeRent RebateorCTBifactual paymentmade
2.11-2.29
Explanations of the classifications2.30 Classifyinganoverpayment
• isanessentialbutbasicstepintheoverpaymentprocess,and
• shouldbecarriedoutattheoutsetwhenanoverpaymentisidentified
Eligible overpayments
Fraud overpayments
40% subsidy
2.31 Definition:Fraudoverpaymentmeansanoverpaymentinrespectofaperiodfallingwhollyorpartlyafter31March1993,whentheclaimanthas,inrespectoftheoverpayment
• beenfoundguiltyofanoffencewhetherunderstatuteorotherwise
• madeanadmissionaftercautionofdeceptionorfraudforthepurposeofobtainingrelevantbenefit,or
• agreedtopayapenaltyundersection115AoftheSSAAandtheagreementhasnotbeenwithdrawn
‘Admissionaftercaution’means
(i) inEnglandandWales,anadmissionafteracautionhasbeenadministeredinaccordancewithaCodeissuedunderthePoliceandCriminalEvidenceact1984
(ii)inScotland,anadmissionaftercautionhasbeenadministered,suchadmissionbeingdulywitnessedbytwopersons
HB Reg 102 & (Pension Credit) 83
2.32 ForsubsidypurposesthereisnoneedtorecordasFraudanyoverpaymentthatoccursbecauseofafraudulentclaim.Thisisbecausetheyarerecordedasaneligibleoverpaymentonthesubsidyclaimformandreceive40%subsidy.However,foroverpaymentrecoverypurposesitisimportantthateachoverpaymentisclassifiedaccordingly,ieFraud,Claimanterroror‘Other’.
(2.10)-2.32
HB/CTB Overpayments Guide
September2010 Amdt3
Classification and recoverability
2.33-2.35
2.33 AnyHBoverpayment classifiedas Fraud canbe recoveredatahigher recovery rate.Also,overpaymentsclassifiedasFraudcanbetreateddifferently,forrecoverypurposes,whentheclaimantisinvolvedininsolvencyprocedures–seeCourts and civil proceedingslaterinthisguide.
2.34 ItmayalsobeusefulforManagementInformation(MI)purposestodifferentiatebetweenClaimanterror,Fraudand‘Other’overpayments.LAsshouldprioritisetherecoveryoftheirfraudulentoverpayments.
Claimant error overpayments
40% subsidy
2.35 Definition:Claimanterroroverpaymentmeansanoverpaymentwhich
a iscausedby
i theclaimant,or
ii apersonactingontheclaimant’sbehalf
- failingtoprovideinformationinaccordancewithHBRegs83(1)or86((PensionCredit)64(1)or67)orCTBRegs69(1)or72((PensionCredit)53(1)or57),or
- failingtoreportachangeofcircumstancesinaccordancewithHBReg88((PensionCredit)69)orCTBReg74((PensionCredit)59),and
b isnotafraudulentoverpayment
Example 1
Achangeoccursintheclaimant’searningson19January2010.Theclaimantfailstoreportthechangeuntil9February2010.TheLAactionsthechangeon10February2010.Theoverpaymentisclassifiedasfollows
25January2010–14February2010:Claimant error
Example 2
TheLAreceivesanHBMSscanon16February2010whichsaysthattheclaimant’sJSAclaimceasedon12January2010.On19March2010theLAsuspendstheHBandwritestotheclaimanttoaskfordetails,allowingonemonthtoreply.Noreplyisreceivedfromtheclaimant,andon19April2010theLAdecidestoterminatetheHBclaim.HBhadbeenpaidupto14March2010.Theoverpaymentisclassifiedasfollows
18January2010–14March2010:Claimant error
AlthoughtheLAknewaboutthechangefromtheHBMSscan,theclaimantstillhasadutyunderHBReg88tonotifytheLAofthechange.BecausetheclaimantdidnotnotifytheLAofthischange,theclaimanthascontributedtotheoverpayment,andthereforeitwouldbeclassifiedasClaimant error.
HB/CTB Overpayments Guide
Amdt3 September2010
Classification and recoverability
2.36-2.39
Reporting change of circumstances to different departments in the LA
No details provided of where to report change of cicumstances
2.36 If an LA does not give details of where a claimant must report changes of circumstancesto (designated office), and just uses terms such as ‘us’, ‘council’ or ‘local authority’ in itscommunications,aclaimantmayreportachangeofcircumstancestoanydepartmentintheLA.Theywillhavesatisfiedtheirdutytoreportchangesofcircumstancesasprescribedbytheregulations.
2.37 AnyoverpaymentfromwhentheclaimantreportsthechangetotheLA(irrespectiveofwhichdepartmenttheclaimantreportsthechangeto)uptowhenthechangeofcircumstancesisprocessed,wouldbeclassifiedasLAofficialerrororAdmindelay(dependingonwhethertheoverpaymentwascausedbyadelayandwhetherthatdelaywascausedbyamistake).SeeLA official error and Admin delay overpaymentslaterinthissection
Details provided of where to report change of circumstances
2.38 IfanLAmakesitclearinitscommunicationsthataspecificdepartment/addressisthe‘designatedoffice’ towhicha claimantmust report changesof circumstances, then the claimantmustreportchangestothatdepartmentinordertosatisfytheregulations.Iftheclaimantreportsachangeofcircumstancestoadifferentdepartment,anyoverpaymentwouldbeclassifiedasClaimanterrorupuntilthe
• claimantnotifiesthedesignatedofficeofthechange,or
• LAstopstheoverpaymentfromcontinuing(suspendstheclaimorprocessesthechange)HB Reg 88 & (Pension Credit) 69; CTB Reg 74 & (Pension Credit) 59
‘Other’ overpayments
40% subsidy
2.39 Definition:‘Other’overpaymentmeansanyoverpaymentswhichdonotfitinanyoftheothercategories.Examplescouldbewhenan
• LAmakesapaymentingoodfaith,butachange,suchasanadversedecisioninajudicialreview,resultsinanoverpayment
• awardofbenefitdoesnot take intoaccountany income subsequentlypaidasarrears,forinstancewhenaclaimant’searningsincreaseretrospectivelyandtheyreceivealumpsumpaymentofarrears,orasaresultofentitlementtoanotherbenefitcommencingorincreasing
HB/CTB Overpayments Guide
September2010 Amdt3
Classification and recoverability
2.40 ClassifyoverpaymentsofHB/CTBcausedasa resultofbackdated incomeas ‘Other’, asnoofficialerrorhasbeenmade.However,iftherehasbeenadelayinprocessingabenefitanditisduetoamistakemadebytheDWP,theoverpaymentcanbeclassifiedasDepartmentalofficialerror.YouwouldneedtoliaisewiththeDWPtoestablishwhetherthedelaywasduetoamistake.
Example 1
AnemployedearnerwhoispaidmonthlyisentitledtoapayincreasefromApril,butthearrearsarenotpaiduntilNovember.
AstherewasentitlementtothepayincreasefromApril,takethearrearsofpayintoaccount for theperiodoverwhich theywouldhavebeen taken intoaccount if theincreaseinpayhadbeenpaidontime.
Calculatetheoverpaymentinthenormalway.Thisshouldbeclassifiedas‘Other’.
Example 2
MrsAisawardedISfromMonday8February2010andisgrantedmaximumHBasaresult.OnMonday22March2010MrsAreceivesanawardofCarersAllowance(CA),whichisbackdatedtoMonday25January2010andtheoveralleffectexceedsherISentitlement.
TheDWPterminateherISfrom8February2010andnotifytheLAofthisonthesameday.
The LA process the change of circumstances and calculate an overpayment from 8February2010to28March2010.Classifythisas‘Other’.
2.41-2.49
LA official error and Admin delay overpayments
100% Subsidy (less than or equal to the lower threshold)
40% Subsidy (more than the lower and up to and including the upper threshold)
Nil subsidy (more than the upper threshold)
2.50 Definition:LAofficialerroroverpaymentmeansanoverpaymentcausedbyamistake,whetherintheformofanactoromission,madebytheLAorsomeoneactingontheirbehalf.Theclaimant,apersonactingontheclaimant’sbehalf,orthepersontowhomthebenefitwaspaid,didnotcauseormateriallycontributetothatmistake,actoromission.
2.51 AnLAofficialerroroverpaymentisonlyrecoverablewhenthepersonaffectedcould,atthetimeofreceiptofthepayment,oranynoticerelatingtothatpayment,reasonablyhavebeenexpectedtorealisethatitwasanoverpayment.
HB Reg 100 & (Pension Credit) 81; CTB Reg 83 & (Pension Credit) 68
2.40-2.51
HB/CTB Overpayments Guide
Amdt3 September2010
Classification and recoverability
2.52 Definition:Admindelayoverpaymentmeansanoverpaymentarisingwhen
a anLAisnotifiedofachangeofcircumstancesandhassufficientinformationandevidencetomakearevisionorsupersessiondecision,and
b theLAdoesnotmakethedecisionbeforetheclaimant’snextpayday,and
c thedelaywasnotcausedbyamistake,whetherintheformofanactoromission,madebytheLA,and
d thedelaywasnotcausedormateriallycontributedtobytheclaimant,apersonactingontheclaimant’sbehalf,oranyotherpersontowhomthebenefitwaspaid
Which classification is appropriate?
2.53 Whenalltheinformationneededtoprocessachangeofcircumstancesthatwouldreduceaclaimant’sHB/CTBentitlementisreceived,theLAmustactionitbeforetheclaimant’snextpayday.Ifitisnotactionedbeforethenextpayday,anyoverpaymentfromthefirstdayofthebenefitweekfollowingreceiptofalloftheinformationshouldbeclassifiedasanLAofficialerrororanAdmindelay.
2.54 Ifthedelayinprocessingthechangeofcircumstanceswascausedbyamistake,forexampletheLAputthechangeofcircumstancesinformationtoonesideandforgottoprocessit,theoverpaymentshouldbeclassifiedasanLAofficialerror.
2.55 IfthedelayinprocessingthechangeofcircumstanceswasduetosomethingoutoftheLA’scontrol,forexamplestaffshortagesduetosickness,oriftheyhadprioritisedtheirworkload,buttheywereunabletoprocessitbecauseofabacklog,theLAmaydecidethattheoverpaymentshouldbeclassifiedasanAdmindelay.
2.56 IftheoverpaymentisclassifiedasanLAofficialerror,theLAmustthenmakeadecisiononwhetheritisrecoverable.Couldtheclaimantreasonablyhavebeenexpectedtorealisetheywerebeingoverpaidatthetimeoftheoverpaymentoranynoticesrelatingtothepaymentsofbenefitthatwereoverpaid?Iftheclaimantcouldn’t,theoverpaymentisnotrecoverable.
2.57 If theoverpayment is classifiedasanAdmindelay, theoverpayment is recoverable.This isbecausealloverpaymentsofHBandCTBarerecoverableexceptcertainofficialerrors.AstheLAhasmadeadecisionthattheoverpaymentwasnotcausedbyamistakeandisthereforenotanLAofficialerror,theoverpaymentisautomaticallyrecoverable.
2.58 An LA might decide an overpayment that was caused by a delay in processing should beclassifiedpartasAdmindelayandpartasLAofficialerror.Thismightbe,forexample,becausetheydecidethattheycouldnothaveprocessedthechangeofcircumstanceswithinacertainperiod,forexamplewithintwoweeksofreceivingalloftheinformation,giventheworkloadsontheirbenefitprocessingteamsandthereforethosetwoweeksoftheoverpaymentshouldbeclassifiedasAdmindelay.Theniftheoverpaymentcontinuedbeyondthosetwoweekstheymightdecidethatfromthatpointonwardsthedelaywasduetoamistake,thatis,therewasanerrorinthattheyomittedtoprocessthechangewheninfacttheycouldhave.TheoverpaymentshouldthereforebeclassifiedasanLAofficialerrorfromthatpoint.
2.52-2.58
HB/CTB Overpayments Guide
September2010 Amdt3
Classification and recoverability
2.59 ThedecisionastowhethertheoverpaymentisanLAofficialerrororAdmindelaymustbemadebytheLAbasedontheindividualcircumstancesofeachcase.Iftheclaimantappealsagainsttheoverpaymentdecision,forexampletheLAhasclassifiedtheoverpaymentasanAdmindelayandtheclaimantthinksthatitwascausedbyanofficialerror,theLAmustbeabletojustifytheirdecision.ItshouldalsobenotedthatiftheLA’sdecisionisthattheoverpaymentisrecoverablebecauseitisnotanofficialerror,atribunaloracourtmighttakeadifferentview.Thereshouldthereforebearecordofthedecision,outliningwhythedelayinprocessingthechangeofcircumstanceswasnotcausedbyamistakemadebytheLA.
Example 1
Whilstreviewingacaseon20October2010theLAnoticesthatthewageshavebeenincorrectlyassessedsincetheclaimwasawardedfrom8February2010.ThereasonforthisisthattheLAhasincorrectlycalculatedthewages.Theclaimanthasnotcontributedtotheerrorinanyway.
TheLArevisestheclaim,creatinganoverpaymentof£10aweek.
TheLAclassifiestheoverpaymentasLAofficialerrorbecauseitwascausedbyamistake.
Example 2
On 16 February 2010 the claimant informs the LA that their contracted hours haveincreased,whichwilltakeeffectfrom8February2010.Fullevidenceisprovided.
Theclaimant’snextpaydayis1March2010,inrespectoftheperiod1February2010to28February2010.
AstheLAhasabacklog,duetostaffsickness,thechangeisnotprocesseduntil4March2010causinganoverpaymentfortheperiod8February2010to28February2010.
TheLAclassifiestheoverpaymentasfollows:
8February2010to21February2010 Claimanterror
22February2010to28February2010 Admindelay
TheLAclassifiespartoftheoverpaymentasAdmindelaybecausetheydonotthinkthedelayinprocessingthechangeofcircumstanceswascausedbyamistake.
2.60-2.69
Suspension when further information is needed
2.70 Regulation11oftheHBandCTB(DecisionandAppeals)Regulations2001statesthatanLAmaysuspendHBorCTB,inwholeorinpart,ifthereisanissueregardingtheconditionsofentitlementonaclaimoriftheLAsuspectsanoverpaymentisoccurring.Astheword‘may’isused,thismeansthedecisiontosuspendisdiscretionary.Thereforeifanoverpaymentoccurs,itisnotnecessarilyanLAofficialiftheLAhasnotsuspendedbenefit.However,thisdoesnotmeanitisneveranLAofficialerroriftheLAhasnotsuspended.
2.59-2.70
HB/CTB Overpayments Guide
Amdt3 September2010
Classification and recoverability
2.71 The LA will have to decide the classification of the overpayment based on the individualcircumstancesofeachcase.Thedecidingfactorsare
• hastheLAmadeamistake,whetherintheformofanactoromission?
• hastheclaimant,personactingontheirbehalforthepersontowhomthebenefitwaspaid,causedorcontributedtothatmistake,actoromission?
2.72 Inacasewheretheclaimantreportsachangeofcircumstances,butdoesnotprovidesufficientinformationandtheLAhasnotsuspendedbenefit,adecisionwillhavetobemadeonwhethertheLAwerejustifiedinnotsuspendingthebenefitandwhethertheclaimanthascontributedto the overpayment. The classification of the overpayment will also depend on how longbenefitispaidwhentheLAareawarethatthereareissuesaroundconditionsofentitlementorasuspectedoverpayment.TheLAshouldnotpaybenefitindefinitelywhilstawaitingfurtherinformationfromtheclaimant.
Example
TheclaimantwritestotheLAtellingthemthedatetheyhavestartedwork.TheydonotgivetheLAanyotherinformationandtheydonotsaywhethertheywanttocontinueclaimingHB.TheLAconsidersanExtendedPaymentbut,astheclaimanthasnotbeeninreceiptofaqualifyingbenefitfor26weeks,theyarenoteligible.TheLAdecidestocontinuepayingHBwhilsttheygatherfurtherinformation,becausetheydecide,basedonthecircumstancesofthisparticularcase,thattheclaimantmayfacehardship.
They write out to the claimant, requesting information and evidence of their newcircumstances,includingdetailsoftheirearnings,inordertocalculatein-workHB.Theygivetheclaimantonemonthinwhichtorespond.Attheendofthemonththeclaimanthasnotreplied.
TheLAdoesnotsuspendbenefitandwritesouttotheclaimantagain,givingthemafurthermonth.Againtheclaimantdoesnotreply.AtthispointtheLAsuspendstheclaim,writesouttotheclaimantagain,tellingthemthatiftheydonotrespondwithinonemonth,theirclaimforbenefitwillbeterminated.Theclaimantdoesnotrespond,sotheclaimisterminatedfromtheMondayfollowingthedatetheclaimantstatedtheyhadstartedwork.IntheLA’sview,theclaimanthas(orcouldacquire)theinformationrequested,butwithholds it.TheLA,therefore,drawsanadverseinferencefromtheclaimant’sfailuretorespondandholdsthattheworkissuch,astoendentitlementtoHBfromthedatetheclaimantstatedtheyhadstartedwork.Theawardissupersededonthisbasis.
2.73 Theoverpayment in theexampleabovewouldbeclassifiedasClaimanterror for thefirstmonthandthenLAofficialerrorforthesecondmonth.TheLAcouldjustifytheirdecisiontocontinuepayingbenefitforthefirstmonth,inorderforhardshipnottobecaused.AlsoitcouldbearguedthattheclaimantdidnotprovidesufficientinformationfortheLAtobeabletoprocessthechangeofcircumstances,soitwouldbeacceptabletoclassifythefirstmonthoftheoverpaymentasClaimanterror.
2.71-2.73
HB/CTB Overpayments Guide
September2010 Amdt3
Classification and recoverability
2.74 However,aftertheclaimantdidnotrespondtothefirstrequestforinformationandevidence,theLAshouldhavesuspendedbenefitastheyknewtheclaimanthadstartedworkandtherewereissuesaroundconditionsofentitlement.TheydidnotknowwhethertheclaimantwantedtocontinueclaimingHB.Thesecondmonths’overpaymentshouldthereforebeclassifiedasLAofficialerror.(Iftheoverpaymentwascausedbyadelayinprocessing,whichtheLAdecidedwasnotcausedbyamistake,whetherintheformofanactoromission,someoftheoverpaymentcouldhavebeenclassifiedasAdministrativedelay.)
2.75 Remember thatyoumustapply thenormal rulesonclassifyingoverpayments, iewhenanoverpaymentchanges fromoneclassification toanother, the subsequentclassificationwillstartfromtheMondayfollowingthereasontheclassificationisbeingchanged.
Example
TheLAreceivesanETDfromtheDWPstatingthataclaimanthasceasedreceivingJSA(IB)becausetheyhavestartedwork.TheclaimantdoesnotcontacttheLA.TheLAconsidersanExtendedPaymentbut,astheclaimanthasnotbeeninreceiptofaqualifyingbenefitfor26weeks,theyarenoteligible.TheLAdecidestocontinuepayingHBwhilsttheygatherfurther information,becausetheydecide,basedonthecircumstancesofthisparticularcase,thattheclaimantmayfacehardship.
They write out to the claimant, requesting information and evidence of their newcircumstances,includingdetailsoftheirearnings,inordertocalculatein-workHB.Theygivetheclaimantonemonthinwhichtorespond.Attheendofthemonththeclaimanthasnotreplied.
TheLAdoesnotsuspendbenefitandwritesouttotheclaimantagain,givingthemafurthermonth.Againtheclaimantdoesnotreply.AtthispointtheLAsuspendstheclaim,writesouttotheclaimantagain,tellingthemthatiftheydonotrespondwithinonemonth,theirclaimforbenefitwillbeterminated.Theclaimantdoesnotrespond,sotheclaimisterminatedfromthedateJSA(IB)ceased.IntheLA’sview,theclaimanthas(orcouldacquire)theinformationrequested,butwithholdsit.TheLA,therefore,drawsanadverseinferencefromtheclaimant’sfailuretorespondandholdsthattheworkissuchastoendentitlementtoHBfromthedateJSA(IB)ceased.Theawardissupersededonthisbasis.
2.76 ThefulloverpaymentintheexampleabovewouldbeclassifiedasClaimanterrorbecausetheclaimantdidnotinformtheLAthattheyhadstartedwork,whichtheyhaveadutytodounderHBRegulation88.Theclaimantthereforecontributedtotheoverpayment.Anoverpaymentcannotbeclassifiedasanofficialerroriftheclaimanthascontributedtoit.
2.77 AnLAshouldnothaveablanketpolicyofalwayssuspendingorneversuspendingbenefit.Eachcaseshouldbeconsideredonitsownmeritsandadecisiontosuspendshouldbebasedontheparticularcircumstancesofthatcase.TheLAmustconsiderthewelfareoftheclaimant,forexamplewhethertheywillfacehardshipiftheirbenefitissuspended.HowevertheLAmustalsomanagetheiroverpaymentdebt,anddoeverythingtheycantokeepittoaminimum.
2.78-2.89
2.74-2.89
HB/CTB Overpayments Guide
Amdt3 September2010
Classification and recoverability
Sufficient information provided by a third party
2.90 IftheLAhassufficientinformationforthemtobeabletoprocessachangeofcircumstances,irrespectiveofwherethatinformationhascomefrom,anyoverpaymentfromtheMondayfollowingreceiptofthatinformationwouldbeclassifiedasLAofficialerrororAdmindelay,dependingonwhetherthedelayinprocessingwascausedbyamistake.FromthepointthattheLAhassufficientinformation,theclaimantisnolongercontributingtothemistake.Thisisbecausenothingfurtherisneededfromtheclaimant.
2.91 Ifthethirdpartydoesn’tprovidesufficientinformation,forexamplewhentheLAreceivesanETDfromtheDWPstatingtheclaimanthasstartedwork,furtherinformationwouldbeneededfromtheclaimantandthereforetheoverpaymentwouldcontinuetobeclassifiedasClaimanterrorupuntiltheinformationisreceivedortheclaimissuspended.
2.92 Thisisbecausetheclaimanthasnot
• satisfiedtheirlegaldutytonotifychangesofcircumstancesthattheymightreasonablybeexpectedtoknowmightaffecttheirbenefitentitlement
HB Reg 88 & (Pension Credit) 69;CTB Reg 74 & (Pension Credit) 59
• providedtheevidenceandinformationneededtoprocessanyquestionsarisingoutoftheclaim
HB Reg 86 & (Pension Credit) 67; CTB Reg 72 & (Pension Credit) 57
Theclaimantisthereforecontributingtotheoverpayment.
2.93-2.99
LA official error/Admin delay subsidy thresholds
2.100 IfanLAofficialerrororAdmindelayoverpaymentoccurs,therearedifferentratesofsubsidythatcanbeclaimed.TheseratesdependonwhetherthetotalamountofLAofficialerrorandAdmindelayoverpaymentsexceedacertainthreshold.
2.101 Currentlythethresholdsexpressedasapercentageoftotalcorrectpaymentsare
• Lowerthreshold 0.48%
• Upperthreshold 0.54%
2.102 Correctpayments(knownas‘totalspecifiedpayments’intheSubsidyOrder)aredefinedaspaymentsforwhichfull(100%)subsidyispayable.Thisincludes
• RentRebates
• non-HRARentRebates
• RentAllowancesandCTB,andincorporates
• anybackdatingthathasbeenproperlyundertaken
2.90-2.102
HB/CTB Overpayments Guide
September2010 Amdt3
Classification and recoverability
2.103 IfthetotalvalueofLAofficialerrorandAdmindelayoverpayments
• donotexceedthelowerthreshold,100%subsidyispayableforalloftheLAofficialerrorandAdmindelayoverpayments
• aregreaterthanthelowerthreshold,butdonotexceedtheupperthreshold,40%subsidyispayableforalloftheLAofficialerrorandAdmindelayoverpayments
• exceedtheupperthreshold,LAsreceivenilsubsidyfortheirLAofficialerrorandAdmindelayoverpayments
Example
TheLA’stotalcorrectpaymentsforthefinancialyearis£34,475,000.
• IfthetotalvalueofLAofficialerrorandAdmindelayoverpaymentsisbelow£165,480theLA can claim100%subsidyonallof their LAofficial errorandAdmindelayoverpayments.
• If the total valueof LAofficial errorandAdmindelayoverpayments isbetween£165,481and£186,165inclusively,theLAcanclaim40%subsidyonalloftheirLAofficialerrorandAdmindelayoverpayments.
• If the total value of LA official error and Admin delay overpayments exceeds£186,165theLAcannotclaimanysubsidyfortheirLAofficialerrorandAdmindelayoverpayments.
2.104 ThesethresholdscouldbereducedinsubsequentyearsinordertograduallyprovidefurtherincentivesforLAstotacklelevelsofLAofficialerrorandAdmindelayoverpayments.
2.105-2.109
Departmental official error overpayments
100% subsidy
Nil subsidy for recovered Departmental official error overpayments
2.110 Definition:Departmentalofficialerrormeansanoverpaymentwhicharisesfromamistake,whetherintheformofanactoromission,madebyanofficerof
• theDWP
• theCommissionersofHerMajesty’sRevenueandCustoms(HMRC)
• apersonactingforanyoftheaboveHB Reg 100 & (Pension Credit) 81; CTB Reg 83 & (Pension Credit) 68
2.111 Thisclassificationisnotappropriatewhenthepersonaffectedcausedormateriallycontributedtothemistake,actoromission.
2.103-2.111
HB/CTB Overpayments Guide
Amdt3 September2010
Classification and recoverability
2.112 ADepartmentalofficialerroroverpaymentisonlyrecoverablewhenthepersonaffectedcould,atthetimeofreceiptofthepaymentoranynoticerelatingtothatpayment,reasonablyhavebeenexpectedtorealisethatitwasanoverpayment.
2.113 RecoveredDepartmentalofficialerroroverpayments,oranypartofaDepartmentalofficialerroroverpaymentwhichisrecovered,arenoteligibleforsubsidy.
2.114 ItisnotnecessarilyaDepartmentalofficialerroriftheDWPfailstopassinformationontoLAsregardingchangesintheclaimant’scircumstances.ThisisbecausetheclaimanthasadutytoreportanychangesthatmayaffecttheirentitlementtoHBorCTBtotheLAthatadministerstheirbenefit.EvenifaclaimanthasnotifiedtheDWPofachange,theystillhaveadutytoreportittotheLA.AnoverpaymentarisingaftertheDWPhasnotifiedtheLAmaybeclassifiedasLAofficialerrororAdmindelay,becauseoncetheLAisawareofachangetheyareexpectedtoactonit.However,thiswillalldependontheinformationthatissentbytheDWP.Iffurtherinformationisstillneededfromtheclaimant,theyarestillcontributingtotheoverpaymentandthereforetheoverpaymentwouldbeclassifiedasClaimanterror.
2.115 TherearehoweverexceptionstotheregulationsthatstipulatethataclaimantmustnotifytheLAofachangeofcircumstances,egInandOutofWork(IOW)ProcessesandclaimantsinreceiptofPensionCredit.
IOW Processes
2.116 TheHBandCTBregulationshavebeenamended,sothatincertaincircumstances,claimantscandischargetheirdutyofreportingtheyhavestartedworktotheLAbyreportingittotheappropriateDWPoffice,(ifatelephonenumberhasbeenprovidedforthatpurpose).
HB Reg 88 & (Pension Credit) 69; CTB Reg 74 & (Pension Credit) 59
2.117 WhentheclaimanttelephonestheDWPtonotifyamoveintowork,theDWPwillconductaninterviewandsimultaneouslycompleteanintoworkstatement,formIWK4.TheDWPwilladvisetheclaimantabouttheevidencetheyneedtosendtotheLAandconfirmtherequestforevidencehasbeenmadeontheIWK4.OncethetelephonecalliscompletedtheIWK4issentimmediatelytotheLAbysecureemail.
2.118 IftheIWK4doesn’tarriveattheLAorthereisadelayintheIWK4arrivingattheLA,butthereisarecordoftheclaimantreportingtheyhavestartedworkusingtheIOWprocessesandtheclaimanthasprovided sufficient information toenable theLA toprocess the change,anyoverpaymentwouldbeclassifiedasDepartmentalofficialerrorfromtheMondayfollowingtheclaimantnotifying theDWP.This isbecause theclaimanthas satisfied their legaldutyofreportingthechangeofcircumstancestotheappropriateofficeandprovidingsufficientinformationandevidence.
2.112-2.118
HB/CTB Overpayments Guide
September2010 Amdt3
Classification and recoverability
2.119 Ifhowever, the claimanthasnotprovided sufficient information, theoverpaymentwouldcontinuetobeclassifiedasClaimanterroruntiltheclaimanthasprovidedtheinformationandevidence.Thisisbecausetheclaimantiscontributingtotheoverpaymentbynotprovidingsufficientinformationandevidenceandanoverpaymentcannotbeclassifiedasofficialerroriftheclaimanthascontributedtoit.
Example
ClaimantreceivingJobseeker’sAllowance(JSA)telephonesthenumberpublishedbytheDWPtoreporttheyhavestartedwork.
TheyconfirmtheynolongerwishtoclaimHBandCTBbecausetheamountoftheirearningsistoohigh.
TheDWPfailstosendtheIWK4totheLAandtheLAthereforecontinuestopayHBandCTBforafurtherthreeweeks.
TheoverpaymentshouldbeclassifiedasDepartmentalofficialerrorbecauseitwascausedbyamistakemadebytheDWP,whichtheclaimantdidnotcontributeto.
2.120-2.129
Claimants in receipt of Pension Credit
2.130 TherearecertainchangesofcircumstancesthataclaimantwhoisalsoinreceiptofPensionCreditcanreporttotheDWPandbydoingso,havesatisfiedtheirdutyofreportingthechangetotheLA.Inthesecases,theLAisreliantonreceivingtheinformationfromtheDWP.
2.131 IfapensionerreportsachangeofcircumstancesontimetotheDWP,andthatchangereducestheirPensionCredit,whichthenreducestheirentitlementtoHBand/orCTB,theLAwouldonlytakethechangeintoaccountfromtheMondayfollowingreceiptoftheinformationfromtheDWP(normallyreceiptofanElectronicTransferofData(ETD))orthedatethePensionCreditreduces,whicheveristhelater.
2.132 IfapensionerdelaysinreportingachangeofcircumstancestotheDWP,andthatchangereducestheirentitlementtoPensionCredit,whichthenreducestheirentitlementtoHBand/orCTB,theLAwouldtakethechangeintoaccountfromtheMondayofthebenefitweekfromwhichthePensionCreditreduced.TheoverpaymentwouldbeclassifiedasClaimanterrorfromthedateofchangetotheendofthebenefitweekinwhichthechangewasnotifiedtotheDWP.ItwouldthenbeclassifiedasDepartmentalofficialerrorfromthefollowingMondayuntiltheendofthebenefitweekinwhichtheDWPsendstheinformationtotheLA.
2.133 IfapensionerhasachangeofcircumstancesthatincreasesentitlementtoPensionCredit,whichthenreducestheirentitlementtoHBorCTB,theLAwouldtakethechangeintoaccountfromtheMondayfollowingreceiptoftheinformationfromtheDWP(normallyreceiptofanETD)orthedatePensionCreditincreases,whicheveristhelater.ItdoesnotmatterifthepensionerdelayedinreportingthechangetotheDWP.
HB (Pension Credit) Reg 60; CTB (Pension Credit) Reg 51
2.119-2.133
HB/CTB Overpayments Guide
Amdt3 September2010
Classification and recoverability
(2.133) Example
AclaimantinreceiptofPensionCredithasanincreasetotheiroccupationalpensionon5January2010.
TheyreportittotheDWPon27January2010.
The DWP recalculates the Pension Credit and sends an ETD to the LA on 10February2010,showingthatPensionCreditdecreasedfrom11January2010.
The LA calculates an overpayment, which is classified as Claimant error from 11January2010to31January2010.
It is then classified as Departmental official error from 1 February 2010 to 14February2010.
2.134 Incasesofdoubt,liaisewiththerelevantDWPofficetoestablishiftheDWPhasmadeamistakeandthereforecausedtheoverpayment.IfyouidentifyanerrorcausedbytheDWP,telltheappropriateDWPofficeassoonaspossible.ItisstilltheLA’sresponsibilitytotakeactiononanyHB/CTBoverpaymentclassifiedasaDepartmentalofficialerror.
2.135-2.139
Technical overpayments
Nil subsidy
2.140 Definition:TechnicaloverpaymentmeansanoverpaymentwhenrentrebateorCTBiscreditedin advance of entitlement for a particular period, where a change of circumstances or arecoverableoverpaymentcausesthatentitlementtoberemovedorreduced.
2.141 AnyrentrebateorCTBoverpaymentthatstartsorcontinuesfromthebenefitweekfollowingtheweekinwhichthechangeisdisclosedtotheLAorinwhichtheLAidentifiesthechange,isaTechnicaloverpayment.
2.142 However,theclassificationsofLAofficialerrorandAdmindelaytakepriorityovertheTechnicaloverpaymentclassification.ThisisbecauseLAofficialerrorsandAdmindelaysaregenuineoverpaymentsonwhichadecisiononrecoverabilityisrequired,whereasTechnicaloverpaymentsarejustadjustmentstotherentorCouncilTax(CT)account.ThebenefitcreditedfortheperiodoftheTechnicaloverpaymentcanbetakenbackoutoftherentorCTaccount.Forexample,ifaclaimantreportsachangeandtheLAmakesamistakeordelaysinprocessingthechange,whichresultsinCTBorrentrebatebeingcreditedagainsttheclaimant’saccountforalongerperiodthanshouldhavebeen,thiswouldbeanLAofficialerrororAdmindelayoverpaymentandnotaTechnicaloverpayment.
(2.133)-2.142
HB/CTB Overpayments Guide
September2010 Amdt3
Classification and recoverability
2.143 AnexampleofaTechnicaloverpaymentiswhenCTBiscalculatedforthefullfinancialyearandiscreditedtotheCTaccount.IfachangeofcircumstancesoccursthataffectstheamountofCTBtheclaimantisentitledto,aTechnicaloverpaymentwouldhaveoccurredforthefutureperiodthathasalreadybeencredited.AsCTBisadailybenefit,calculateaTechnicaloverpaymentfromthedaythechangeisprocessedbytheLA,totheendofthefinancialyear.Therewillnotactuallyhavebeenanybenefitpaidout;itwilljusthavebeenacredittotheCTaccount.TherewillnotbeanymoneytorecoverfromtheclaimantfromthedaytheLAprocessesthechangeandthereforestopstheoverpaymentfromcontinuing.ItispurelyapaperexercisethatisdealtwithbytheCTaccountssystem.
Example
MrXclaimedCTBon5April2010andiscreditedwithafullrebatethroughtotheendofthefollowingMarch.
Hisincomeincreases,andheisnolongerentitledtoCTBfrom21June2010.
HenotifiesthechangetotheLAon6July2010,andtheyreassesshisclaimfrom22July2010,whentheCTBisterminated.
ThereisanoverpaymentofCTBfrom21June2010to31March2011.
TheyclassifytheexcessCTBasfollows
21June2010to11July2010 = Claimanterroroverpayment
12July2010to21July2010 = LAofficialerror/Admindelayoverpayment
22July2010to31March2011 = Technicaloverpayment
2.144 TheTechnicaloverpaymentclassificationshouldalsobeusedwheneitherCTliabilityceasesinaCTBcaseortherentalliabilityceasesinarentrebatecase.ThisisbecauseCTBispaidbyreducingtheCTliabilityandrentrebateispaidbyreducingtherentalliability.IftheCTandrentalliabilityhaveceased,thereisnothingtoreduceandthereforethereisnothingtorecoverfromthecustomer.TheCTBandrentrebatethathasbeencreditedaftertheliabilityceasedcanbetakenbackoutoftheCTandrentaccounts.SubsidyisnotpayableforCTBorrentrebatecreditedafterliabilityhasceased.
Section 134 and Section 138 SSAA1992
CTB – CT liability ceases
2.145 CTBTechnicaloverpaymentscanoccurwhencounciltaxliabilityhasended,butbenefithasbeenpostedtotheaccountforaperiodaftertheendofliability.Thiscouldbebecausetheclaimanthas
• moved,or
• died
Note:ExcessCTBcausedbytheclaimant’sCTliabilityceasingshouldalwaysbeclassifiedasaTechnicaloverpayment.Fortheperiodtherewasn’taCTliability,thereisn’tanythingtorecoverfromtheclaimant.TheCTBcreditedtotheCTaccountfortheperiodaftertheliabilityceasedcanbetakenbackoutoftheCTaccount.Thereisn’tanysubsidypayableforthisperiod.
2.143-2.145
HB/CTB Overpayments Guide
Amdt3 September2010
Classification and recoverability
(2.145) Example
MrXclaimedCTBon5April2010andiscreditedwithafullrebatethroughtotheendofthefollowingMarch.
MrXvacatesthepropertyandhisliabilitytopayCouncilTaxcomestoanendonTuesday13July2010.
HenotifiesthechangetotheLAonFriday23July2010andtheLAprocessesthechangeonFriday6August2010.
TherecanbenooverpaymentofCTBastheclaimantwasnolongerliabletopayCouncilTax.
ForrecordingpurposestheexcessCTBisclassifiedasfollows
13July2010to31March2011 = TechnicalOverpayment
Rent Rebate – rental liability ceases
2.146 HB technical overpayments can only occur in rent rebate cases. As with CTB technicaloverpaymentsthisisduetoliabilityendingandbenefitbeingpostedtotheterminatedrentaccount.Thisisoftenduetoboththeclaimantandhousingdepartmentfailingtonotifythebenefitsection.
Example
MrsCclaimedHBon4January2010.
MrsCvacateshercouncilpropertyandmovesoutoftheLA’sareaon12August2010.
Thehousingdepartmentclosesherrentaccountandthereforeceasesherrentalliabilityfrom23August2010.
MrsCnotifiesthebenefitsectionofthechangeon26August2010,andtheyreassesstheclaimfrom30August2010.
ThereisanoverpaymentofHBfrom16August2010to29August2010
TheHBoverpaymentisclassifiedasfollows
16August2010to22August2010 = Claimanterroroverpayment
23August2010to29August2010 = Technicaloverpayment
(2.145)-2.146
HB/CTB Overpayments Guide
September2010 Amdt3
Classification and recoverability
2.147 TheTechnicaloverpaymentclassificationcanbeappliedretrospectivelyiftherentalliabilityisterminatedretrospectively.Themostcommonreasonforthisiswhenaclaimantdiesormovesoutofacouncilpropertyandacloserelativetakesoverthetenancy.
Example
MrBdieson7July2010andtheHBsectionisinformedon29July2010.
TheHBclaimisterminatedfrom12July2010,whichleadstoanoverpaymentofHBfrom12July2010to1August2010,whichtheyclassifyasOther.
MrsBlaterappliesforandisgiventhetenancyforthepropertybacktothe19July2010.SheclaimsHBanditisbackdatedtothebeginningofthetenancy(19July2010).
AsMrsBtookoverthetenancyfromthe19July2010,thehousingdepartmentterminatesMrB’stenancyfrom19July2010.
TheHBsectioncanthereforetaketherentrebatecreditedtoMrB’srentaccountbackoutoftheaccountfromthe19July2010.
Theoverpaymentisclassifiedasfollows
12July2010to18July2010 = Other/Claimanterror
19July2010to1August2010 = Technicaloverpayment
Overpayments arising following the suspension of CTB
2.148 ConsidersuspendingCTBifa
• doubtaboutaperson’sCTBentitlementarises,or
• claimantfailstoprovidenecessaryinformationthatyouhaverequested
2.149 Aswithallcasesofpossiblebenefitsuspension,suchactionisnotmandatoryasithasalwaysbeenanimportantprinciplethatDecisionMakersconsidereachcaseonitsmerits.
2.150 If you decide to suspend CTB in a given case, the immediate impact of this differs fromsuspensionsinotherbenefits(includingHB)givenCTBworksbyrebatingtherelevantannualamountofCouncilTaxduefromtheclaimantatthestartoftheiraward.BecausepaymentsofCTBarenotphysicallyongoingduringtheyeartheyarenotsuspendedinthesenseofpaymentsbeingactuallystopped.
2.151 Therefore,suspensionofCTBhasnomaterialimpactoneithertheauthorityortheclaimantduringthesuspensionperiod,otherthanissueandreceiptofthenotificationletter.
2.152 Suspensionisatransitoryeventdesignedto
• encouragetheclaimanttoco-operate,or
• enabletheawardtobeterminated
2.147-2.152
HB/CTB Overpayments Guide
Amdt3 September2010
Classification and recoverability
2.153 Ifthesuspensionisduetoafailuretosupplyinformation,itendswhen
• theinformationisprovided,or
• CTBisterminatedundertheprovisionsintheHBandCTB(DecisionsandAppeals)Regulations2001,Regulation14
2.154 Ifthesuspensionisduetoadoubtaboutentitlement,itendswitheither
• continuationofthedecision
• revisionofthedecision
• supersessionofthedecision
Note:Suspensionisneveranendinitself.
2.155 FromthedatethatCTBissuspended,benefitisnotoverpaid.However,asCTBiscrediteduptotheendofthefinancialyear,calculateanyoverpaymentupuntiltheendoftheyear.Fromthedateofsuspension,anyoverpaymentisclassifiedasaTechnicaloverpayment.Thismeanstherehasn’tactuallybeenanybenefitoverpaid–itismerelyanaccountingmatter.SomeLAsrefertotheseas‘paper’overpayments.
Example
AclaimanthasbeenentitledtofullCTBfrom1April2010,worth£1,200(or£100permonth).Thisfullamountisrebatedatthestartofthefinancialyear.
OnTuesday3August2010,theLAlearnsthattheclaimanthasstartedahigherpaidjob.TheysuspendCTBbysimplynotingtheirsystemandwritingtotheclaimant
• advisingthemofthesuspension
• tellingthemarevisedCouncilTaxbillwillnotbeissuedduringthedurationofthesuspension
• requestingdetailsoftheirnewemploymentandearnings
Theclaimantreplieson1September2010totheeffectthattheirnewjobbeganonWednesday,30June2010.ItisclearthattheirnewearningsaresufficienttoniltheirCTBentitlementandtheoriginaldecisionissuperseded.
Inthiscase,CTBentitlementendedonSunday,4July2010–justoveramonthbeforethesuspension.TheLAwritestotheclaimanttoadvisethemofthisandthatarevisedCouncilTaxbillwillbeissued.TheLAissuesaCouncilTaxdemandfor£900fortheperiod5July2010to31March2011.
continued
2.153-2.155
HB/CTB Overpayments Guide
September2010 Amdt3
Classification and recoverability
(2.155) Theoverpaymentisclassifiedasfollows
5July2010to2August2010 = Claimanterror
3August2010to31March2011 = Technicaloverpayment
TheLAnotifiestheclaimantoftheClaimanterrorpartoftheoverpayment,satisfyingSchedule8requirementsandgivingtheappropriateappealrights.
2.156-2.169
Excess CTB arising from a reduction in CT liability
Nil subsidy
2.170 Definition:ExcessCTBmeansanoverpaymentthatarisesfromthereductioninaclaimant’sCTliability,egadelayedawardoftransitionalrelief,areductioninaproperty’sbandingfollowinganappealoralateawardofdiscount.SubsidycannotbeclaimedforreductionsinCTliability.Thereisn’tanythingtorecoverfromtheclaimant.ItisjustanadjustmenttotheCTaccount.
Indicative Rent Level overpayments
100% subsidy
Nil subsidy for recovered Indicative Rent Level overpayments
2.171 Definition:IndicativeRentLevel(IRL)overpaymentmeansanoverpaymentwhicharisesasaresultofbenefitbeingpaidusingIRLfigures,whichexceedsthemaximumrentpayable.
2.172 IfanIRLfigureisusedwhendecidingtheamountofpaymentonaccount,andarentofficer’sdecisionresultsinlesseligiblerentthantheIRL,LAsshouldrecovertheexcesspaymentonaccountfromongoingbenefit.
2.173 RecoveredIRLoverpaymentsoranypartofanIRLoverpayment,whichisrecovered,arenoteligibleforsubsidy.
2.174-2.179
Duplicate overpayments
25% Subsidy
2.180 Definition:Duplicateoverpaymentmeansanyoverpaymentarisingfromaduplicatepaymentfollowingallegednon-receipt,loss,theft,ordestructionincaseswheretheoriginalpaymenthasbeencashed.
(2.155)-2.180
HB/CTB Overpayments Guide
Amdt3 September2010
Classification and recoverability
More than one overpayment classification
2.181 Anoverpaymentmayhavemorethanoneclassification.Forexample,anoverpaymentcausedinitiallybyaclaimantfailingtoreportachangeofcircumstancesmaybeprolongedifthereisadelaybytheLAinactioningthechangeonceitisfinallyreported.ThepartoftheoverpaymentattributabletotheclaimantfailingtoreportachangeshouldbeclassifiedasClaimanterrorandtheremainingpartoftheoverpaymentshouldbeLAofficialerrororAdmindelay.
2.182-2.189
Is an overpayment recoverable?2.190 Therearethreequestions,whichmustbeconsideredinordertodecidewhetheranoverpayment
isrecoverable.Theyare
• Wastheoverpaymentcausedbyamistake,whetherintheformofanactoromission,bytheLA,DWP,HMRCorapersonactingontheirbehalf?
• Didtheclaimant,apersonactingontheirbehalforthepersontowhomthebenefitwaspaid,causeormateriallycontributetothemistake,actoromission?
• Couldtheclaimant,apersonactingontheirbehalforthepersontowhomthebenefitwaspaid,reasonablyhavebeenexpectedtorealisetheywerebeingoverpaid,eitheratthetimeoftheofficialerroroverpaymentoranynoticerelatingtothepaymentsthatweremade?
HB Reg 100 & (Pension Credit) 81; CTB Reg 83 & (Pension Credit) 68
Note:Thequestionofwhetheranoverpaymentisrecoverableisseparatefromthequestionofwhethertorecoverit.
Was the overpayment caused by a mistake?
2.191 Wastheoverpaymentcausedbyamistake,whetherintheformofanactoromission,bytheLA,DWP,HMRCorapersonactingontheirbehalf?
2.192 Iftheanswertothisquestionisno,thentheHBorCTBoverpaymentislegallyrecoverable.Theoverpaymentshouldnotbeclassifiedasanofficialerror.However,justbecauseanoverpaymentisrecoverabledoesnotmeanthatitmustberecovered.
2.193 Iftheanswertothisquestionisyes,youmustgoontoconsiderthenextquestion.
Did anyone contribute to the mistake?
2.194 Didtheclaimant,apersonactingontheirbehalforthepersontowhomthebenefitwaspaid,causeormateriallycontributetothemistake,actoromission?
2.181-2.194
HB/CTB Overpayments Guide
September2010 Amdt3
Classification and recoverability
2.195 Iftheanswertothisquestionisyes,thentheHBorCTBoverpaymentislegallyrecoverable.Theoverpaymentshouldnotbeclassifiedasanofficialerror.However,justbecauseanoverpaymentisrecoverabledoesnotmeanthatitmustberecovered.
2.196 Iftheanswertothisquestionisno,theHBorCTBoverpaymentshouldbeclassifiedasanofficialerror.Youmustgoontoconsiderthenextquestion.
2.197-2.209
Could anyone reasonably have been expected to realise they were being overpaid?
2.210 Couldtheclaimant,apersonactingontheirbehalforthepersontowhomthebenefitwaspaid,reasonablyhavebeenexpectedtorealisetheywerebeingoverpaid,eitheratthetimeoftheofficialerroroverpaymentoranynoticerelatingtothepaymentsthatweremade?
2.211 Iftheanswertothisquestionisyes,thentheHBorCTBoverpaymentislegallyrecoverable.
2.212 Iftheanswertothisquestionisno,thentheoverpaymentisnon-recoverable.Itmustbewrittenoff.
2.213 However,thiscanbeadifficultdecisiontomake.Thereareanumberoffurtherissuesthatmustbeconsidered,suchas,didthepeopleaffected
• receivethedecisionnotices?
• readthedecisionnotices?
• knowwhichchangesofcircumstancesmustbereportedtotheLA?
2.214 Also,couldthepeopleaffectedreasonablyhave
• knownanoverpaymenthadoccurred,fromtheinformationprovidedbytheLA?
• expectedachangeintheamountofbenefittheyreceive,havingnotifiedtheLAofachangeofcircumstances?
• expectedanoverpaymenttooccuriftheyhadpreviouslyhadasimilarchange,whichcausedachangeintheamountofbenefittheyreceived?
2.215 ‘Reasonablyhavebeenexpectedtorealise’canbeinterpretedinthepersonaffected’sfavour,if
• youconsider,becauseoftheirage,intelligence(egcantheyread)ormentalcondition,thattheygenuinelywereunawareoftheofficialerroroverpayment
• theystatetheywerewronglyadvisedbyanofficial source;howevertheonusofproofwillbeonthepersonaffected.Insuchcases,astatementshouldbetakenfromallpartiesconcernedandadecisionmadeonthebalanceofprobabilities.
2.195-2.215
HB/CTB Overpayments Guide
Amdt3 September2010
Classification and recoverability
2.216 In some cases, an overpayment may need to be split into different classifications, ie partattributabletoofficialerrorandpartClaimanterror.Inthesecircumstances,determineatwhatdatetheerrortransferredfrombeingtheresponsibilityofonepartytotheother.
2.217 If,afterallthesefactorshavebeenconsidered,youaresatisfiedtheoverpaymentoccurredduetoofficialerrorandthepersonaffectedcouldnotreasonablyhavebeenexpectedtorealisetheywerebeingoverpaid,thentheoverpaymentshouldbecategorisedasnon-recoverable.
2.218-2.229
When should a recoverable overpayment be recovered?
2.230 Any recoverableoverpaymentmaybe recoveredat the LA’sdiscretion. If youestablishanoverpaymentisrecoverable,itdoesnotmeanyoumustrecoverit.
2.231 Thedecisionthatanoverpaymentisrecoverablemustbeseparatefromthedecisiontorecoverit.Dueregardshouldbegiventothecircumstancesrelatingtoindividualcases,whendecidingwhetherornotrecoveryisappropriate.
2.232 AnLAisnotobligedtomakerecoveries.Eachindividualcaseshouldbedecidedonitsownmerits,ieablanketpolicyforrecoverymustnotbeapplied.AnLAthatactedunreasonablyorirrationallycouldbesubjecttojudicialreview.
2.233 AnLAmustsatisfyitselfthatitisreasonabletomakerecoveryineveryindividualcase,seeRecovery of overpayments, Write-offslaterinthisguidefordetailsofrecoverableoverpaymentswhenadecisionismadenottorecover.
2.234-2.999
2.216-2.999