DWP Letter re overpayment of pension credit

[Belladog]

Hi recieved letter from DWP re my mothers estate. They say they think there has been an over payment on her pension credit. They are asking about accounts that I have no knowledge of (only know of 2) and want to go back 14 years. Don't know what to do

[Peridot]

Hi Belladog,

Don't panic, the DWP are entitled to request the information. Were you the executor/administrator of your mother's estate? If you were not then the matter should be passed to the executor/administrator to deal with and the DWP informed appropriately.

As executor/administrator it would be unwise to distribute everything and finalise the estate until their investigations have completed but this is not insurmountable. If the estate has been distributed and an overpayment has been found to have been made, then it will be necessary to go back to the residuary beneficiaries to claw back sufficient of the legacies to repay the DWP. As executor/administrator you should be aware that you are potentially personally liable for any debts (including overpayments of means tested benefits) of the estate, if you are unable to settle the debt due to the estate having been distributed and the residuary beneficiaries not being forthcoming to assist with any claw back.

It sounds like the DWP believe they may have incorrectly calculated a means tested benefit your mother claimed, or they suspect that a change in circumstances may not have been declared at the time. Have they indicated which benefit they believe was paid incorrectly, (Pension credit or were there other benefits involved too?) or is there a trigger event 14 years ago, for example your father passed away or a property was sold or transferred to someone else?

I would suggest letting the DWP know you are unaware of the accounts they have indicated and let them know that you will contact the bank to have this confirmed. It may be they have incorrectly identified accounts that did not belong to your mother, or maybe those accounts were closed and funds transferred into the accounts you are aware of. If the DWP provide further information it may trigger something with you and also enable you to direct your efforts in obtaining the information they need form you. For the 2 accounts you are aware of then start collating the information they have requested. Talk to the bank who can assist you here.

If you obtain any further information from DWP do pop back and we may be able to point you in the right direction.

[grumpygraham]

While I agree that DWP are entitled to request information, there is no legal backing to that request - ask them to provide details of the legislation supporting their request if you are unsure. The DWP go on fishing trips hoping that executors will go to lots of effort to provide the DWP with data that then permits the DWP to make a formal claim on the estate. If the executors do not comply the DWP might have suspicions but no proof of an overpayment.

[grumpygraham]

I'm helping a neighbour who has got one of these approaches from DWP. The thrust of the case is that a woman was granted PC in January 2009. she died in Feb 2020. in her original claim she disclosed £2,000 of savings, but at death had £24,000. The lady was granted 2 Assessed Income Periods from October 2008 for 5 years and then indefinitely from October 2013, so she had this until death.

The IHT documentation was copied to DWP and they requested information. The executor didn't supply any (only the assets at death are required to be disclosed to DWP by law). As a result the DWP has made an overpayment decision declaring that the lady had MISREPRESENTED the material fact that she had savings and investments in excess of that declared. In the absence of further information requested the DWP decision maker CAN ONLY assume that the assets declared in the IHT submission were in her possession in 2008 and 2013. Based on that outrageous proposition/statement the DWP have recalculated pension credit due and after offsets are claiming £6,000. they have taken no account of limitation

The DWP have no evidence other than the amounts originally declared and the IHT figures at death. The purpose of the Assessed income Periods is that claimants are not required to declare increases in assets only decreases. Its an outrage that the DWP can make such ridiculous statements and then try to put executors through the wringer on the basis of fanciful calculation. They keep threatening court action but naturally do not actually take it - they'd be left with egg on their face.. They are wasting their time and our taxpayers money flying kites. They are also wasting the publics time.

I note from the Department’s most recent set of annual accounts that some £221,628,000 was written off as non-recoverable overpayments of benefit. They must do this a lot.