CPAG wins right to appeal ruling on overpayment recovery

In a case brought by CPAG in the High Court, a judge has ruled today that it is lawful for the Secretary of State for Work and Pensions to recover overpayments of social security benefits through the courts where the claimant is not at fault.

Between March 2006 and February 2007 the Government wrote to over 65,000 claimants telling them it could take them to court at common law if they did not pay back overpayments. The letters acknowledged the money was paid due to DWP error and was not recoverable under social security law. Benefits affected include those paid to claimants with disabilities and those over 60. The ruling does not affect recovery of tax credits or housing benefit.

Commenting on today’s ruling, Child Poverty Action Group’s solicitor, Sarah Clarke, said:

“We brought this case because we know that letters sent to vulnerable claimants threatening court action if they do not repay have caused considerable distress and recovery can cause hardship. We are not aware that the DWP considered the claimant’s circumstances before these letters were sent.

“We will be pursuing an appeal. For the time being an undertaking remains in place preventing the Department for Work and Pensions sending the letters. It is important that claimants understand that they should never ignore a letter asking for an overpayment recovery, but should seek advice, and query it if they think it is wrong.”

Notes for editors

• Benefits affected include: Incapacity Benefit; Disability Living Allowance: Carers Allowance; Income Support; Employment and Support Allowance; State Retirement Pension; Pension Credit; Jobseekers Allowance.
• The DWP will not begin to reissue letters again as the undertaking not to issue further letters that was given by the Secretary of State when legal action was initiated will remain in place while the decision is subject to appeal action. This does not apply to notices sent regarding recoveries made under social security law as opposed to common law.
• For more information on CPAG test cases, visit: www.cpag.org.uk/cro/test.htm
• For up-to-date background facts and stats on UK poverty, visit: www.cpag.org.uk/povertyfacts/
• CPAG is the leading charity campaigning for the abolition of child poverty in the UK and for a better deal for low-income families and children.
• CPAG is one of over 150 member organisations of the Campaign to End Child Poverty, campaigning for public and political commitment to ensure the goals of halving child poverty by 2010 and ending child poverty by 2020 are met.

For further information please contact:
Tim Nichols
CPAG Press Officer
Tel. 020 7812 5216 or 07816 909302
tnichols@cpag.org.uk