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Courts rule DWP cannot reclaim overpayments
http://www.guardian.co.uk/money/2010...t-legal-action
The supreme court ruled today that the government cannot recover overpayments of social security benefits through the courts where the claimant is not at fault.
In a landmark judgment, the court declined to accept the government's argument that the Department of Work and Pensions could sue recipients in the county court if they did not pay back overpayments that arose as a result of the department's error.
Between March 2006 and February 2007, the government wrote to more than 65,000 claimants saying it could sue them for overpayments.
The legal argument, put in writing to those affected, was that the department was entitled to take benefit claimants to court under common law although the money was paid due to the department's error and would not be recoverable under social security law.
A coalition of anti-poverty campaigners had said many claimants were worried and frightened by the threat of legal action. Social security payments are extremely complicated and claimants often do not realise that they are being overpaid.
Campaigners argued that many had spent the money received and had no means to repay. Claimants in receipt of these benefits were likely to be on extremely low incomes, and could be vulnerable, elderly or in poor health, they said.
The benefits affected included those paid to families, people with disabilities and pensioners. The DWP's own figures state that at least £1.1bn a year is paid out as a consequence of its own errors.
The Child Poverty Action Group, said the court's ruling "affected not just many thousands of claimants but goes to the heart of the government's welfare reform agenda"
http://www.guardian.co.uk/money/2010...t-legal-action
The supreme court ruled today that the government cannot recover overpayments of social security benefits through the courts where the claimant is not at fault.
In a landmark judgment, the court declined to accept the government's argument that the Department of Work and Pensions could sue recipients in the county court if they did not pay back overpayments that arose as a result of the department's error.
Between March 2006 and February 2007, the government wrote to more than 65,000 claimants saying it could sue them for overpayments.
The legal argument, put in writing to those affected, was that the department was entitled to take benefit claimants to court under common law although the money was paid due to the department's error and would not be recoverable under social security law.
A coalition of anti-poverty campaigners had said many claimants were worried and frightened by the threat of legal action. Social security payments are extremely complicated and claimants often do not realise that they are being overpaid.
Campaigners argued that many had spent the money received and had no means to repay. Claimants in receipt of these benefits were likely to be on extremely low incomes, and could be vulnerable, elderly or in poor health, they said.
The benefits affected included those paid to families, people with disabilities and pensioners. The DWP's own figures state that at least £1.1bn a year is paid out as a consequence of its own errors.
The Child Poverty Action Group, said the court's ruling "affected not just many thousands of claimants but goes to the heart of the government's welfare reform agenda"
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