Court-rules-DWP-cannot-recover-overpayments

Between March 2006 and February 2007 the Government wrote to more than 65,000 people claiming benefits administered by the DWP - including income support, disability benefit and state retirement pension, but not housing benefits or tax credits – and threatened to take them to court if they did not pay back overpayments.

The letter acknowledges the surplus money was paid due to DWP error and was not recoverable under social security law. Nonetheless, the department claimed it would have a case under common law.

Campaign group the Child Poverty Action Group (CPAG) contested this. Although it lost a High Court case in February this year, it yesterday won its appeal after the judge recognised that "the impact [of having to pay back overpayments] can be devastating to a person already living in or close to penury".

The court’s decision means the Government cannot write these letters to claimants in the future, according to CPAG. The charity is considering the implications for whether claimants can recover money they have already repaid.

Sarah Clarke, a solicitor for CPAG, 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. We are delighted with the ruling that the DWP cannot recover these overpayments through the courts."