Payne & Cooper V DWP - Benefit overpayments, Tax Credits etc in BR

debt_doctor

Hi all,

Just to let you know that the Supreme Court has ruled that overpayments of social fund debts, social fund loans and benefit overpayments to DWP LA's and HMRC can no longer be recovered during the undischarged bankruptcy period.

Previously they were allowed to deduct from benefit whilst the BR was undischarged. This brings the situation in to line with DRO,s.

DD

fermi

Any links for that yet? Can't see anything on bailii etc....

EDIT: I tell a lie.

Is this it?

http://www.bailii.org/uk/cases/UKSC/2011/60.htm

debt_doctor

Yep, that's the one!

DD

fermi

"For my part, therefore, I would hold that Taylor and Chapman was wrongly decided. The Secretary of State loses the power to recoup overpayments and Social Fund loans on the making of a bankruptcy order just as he does on the making of a DRO."

tigerfeet2006

At long blimmin' last. It's been a long time coming.

debt_doctor

fermi wrote: »

"For my part, therefore, I would hold that Taylor and Chapman was wrongly decided. The Secretary of State loses the power to recoup overpayments and Social Fund loans on the making of a bankruptcy order just as he does on the making of a DRO."

In a nut shell, yes.:T

The case was brought by the Public Law Project and Citizens Advice Specialist Support. It at last gives clarity and aligns the two insolvency methods.

...... now if they can only sort out the mess that is rent arrears and Debt Relief Orders...........

DD

fatbelly

Have we won the battle but lost the war?

29. As both Lady Hale (para 26) and Lord Mance (para 44) observe, it must
now be for Government to consider whether or not to achieve a different result by
amending legislation. It will hardly be surprising if they do.

coolcait

fatbelly wrote: »

Have we won the battle but lost the war?

I think that may be a risk.

That said, it is good to see an element of consistency coming out of these judgements.

debt_doctor

fatbelly wrote: »

Have we won the battle but lost the war?

Always a risk colleague, but of course similar comments around this case have been said by high court judges' before.
The complexity and political will to go against the supreme court is probably not what the government would apply 'sufficient time' to in my opinion considering their other concerns.

Do you worry (as I do) about advising on DROs and rent arrears?

DD

fermi

At least the legal bods have got the 'goal posts' in the right place now.

If the government legislates to move them again, then that is up to them I suppose.

antonic

If they can they will,

Look what they have done to Civil Service Pensions.