from rightsnet.org.uk

All overpayments of employment and support allowance, jobseeker's allowance and universal credit to be recoverable

Employment Minister sets out details of new power, including discretion not to recover in 'official error' cases

23 May, 2011

Employment Minister Chris Grayling has given details of a new power to recover all overpayments of employment and support allowance, jobseeker's allowance and universal credit.

Speaking to the parliamentary Welfare Reform Bill Committee in a debate on Clause 102 of the Welfare Reform Bill 2011, which was passed unamended by the Committee, Mr Grayling said -

'The clause will allow all overpayments of universal credit, jobseeker’s allowance and employment and support allowance to be recoverable. Similarly, all payments on account and certain hardship payments will be recoverable. The clause will ensure that overpayments of all other benefits remain recoverable, as they are now, but only in circumstances in which there has been a misrepresentation or failure to disclose.'

However, Mr Grayling said that there would be an exception to the rule for the housing credit element of state pension credit or housing credit itself  -

'Regulations will prescribe, for example, that overpayments of housing credit will be recoverable if caused by official error and paid directly to a landlord, but not recoverable if paid to a pensioner. We intend to have clear rules that do not apply the same principles of recoverability to pensioners as to people of working age.'

Confirming that there will be the discretion not to recover in official error cases, Mr Grayling said that there will be an 'absolutely clear' code of practice' on recovery 'to ensure consistent, considered decision making' and that -

'With recovery of all overpayments, a number of factors will be considered. We will consider not only whether the claimant received the money in good faith but whether recovery of the money is likely to cause the claimant or their immediate family significant hardship or threaten their health or welfare.... In such situations, 'hardship' can mean various different things. We are dealing with vulnerable people, including people with mental health problems who cannot possibly be reasonably expected to know that an overpayment had been made.'

In addition, responding to concerns that there might be disparate treatment between offices and regions, Mr Grayling said that the government was seeking to ensure that decisions would be made by 'quality, well trained decision makers' with the freedom to take 'the right decisions in sensitive areas, against clear guidelines on the things they should be looking for'.

The 23rd sitting of the Welfare Reform Bill Committee is available from Hansard.