How are ESA arrears treated in an IVA

debtdalek

We're just over two years into an IVA and recently had to drop our payments due to a ridiculous ATOS assessment reducing my Incapacity Benefit income to the equivalent of JSA.
After an appeal I have now been put in ESA Support group and have had another income and expenditure review which will increase our monthly IVA payments to higher than the original - fair enough.
But my question is what about the arrears, as they have backdated the benefit. IP not sure as to whether this counts as a windfall. Please don't ask me to look in my paperwork as I've been through the lot and have never been given any of the clauses. Even if I had, my argument is that benefit arrears are surely not a windfall.

National_Debtline

Hi DD

Just to be clear and avoid potential confusion, there is no ESA overpayment owed by you, correct? It's just that the title of your thread may mislead, as it suggests that you are looking to include a benefit overpayment in your IVA.

The question, I think, is how the IP would have dealt with you had the correct ESA payments been made at the time they should have originally been paid. If these payments had left you with more disposable income and therefore able to pay that bit more into the IVA each month, the IP could potentially ask for that extra money - but not necessarily as a single lump sum. The onus may be on you, however, to argue that you should be allowed to retain some/all of the backdated benefit payment.

Other than that, is the IVA proceeding to your satisfaction?

Regards

Dennis @NDL

debtdalek

Apologies, hadn't realised my post was ambiguous.
Yes I meant that the DWP sent me arrears. IP has come back to me to say that we can keep half of the arrears and then done a review based on the increased income, so that we are paying more into the IVA monthly.

National_Debtline

Hi again

That doesn't sound like too bad an outcome - are you happy with it?

Dennis @NDL