Help! Parents told they need to pay back £36K pension overpayment

watcher27

Well, I'm not in possession of the full details at the moment and will find those out shortly, but the short story is that since around 2003 my mum has received a pension on top of my step dads pension of around £54 a week.
Apparently this scheme was stopped in 2007 but because they were already on it this payment has continued.

My dad has just turned 80 (not sure if this is relevant to it or not), and my mum has received a letter basically saying she shouldn't have been receiving these payments and it needs to be claimed back!

No figure has been mentioned, but they have added it up to approx £36,000.

The lady from dept of work & pensions says this is because my mum was working, but she wasn't!
She has been told she needs to prove she wasn't working at that time. My mum started work later, around 2005, but the lady from the DWP only seemed interested in the 2003 -2004 range?!

My parents never applied for it, they were phoned and told they were eligible for it.

Has anyone heard of this scheme or know any more details about it?

Both are panic stricken and think they will have to sell the house

UPDATE:
Just to be clear, my mum wasn't working at the time, but started working later on

kidmugsy

watcher27 wrote: »

Well, I'm not in possession of the full details at the moment and will find those out shortly, but .... it needs to be claimed back!

I'd start off by wondering whether this is a scam. Have they tried phoning the DWP using the phone number given on an old letter that they know to be genuine?

sleepymans

Step one....insist in written details and claims. Then come baxxk on here with the details for advice.

xylophone

I wonder does this have something to do with the old "Adult Dependency Increase"?

http://www.web40571.clarahost.co.uk/archive/saga/2010/20100101Works.htm

Tealblue

watcher27 wrote: »

Well, I'm not in possession of the full details at the moment and will find those out shortly, but the short story is that since around 2003 my mum has received a pension on top of my step dads pension of around £54 a week.
Apparently this scheme was stopped in 2007 but because they were already on it this payment has continued.

My dad has just turned 80 (not sure if this is relevant to it or not), and my mum has received a letter basically saying she shouldn't have been receiving these payments and it needs to be claimed back!

No figure has been mentioned, but they have added it up to approx £36,000.

The lady from dept of work & pensions says this is because my mum was working, but she wasn't!
She has been told she needs to prove she wasn't working at that time.

My parents never applied for it, they were phoned and told they were eligible for it.

Has anyone heard of this scheme or know any more details about it?

Both are panic stricken and think they will have to sell the house

Agree with the above posts - check if this is a scam.

Very hard to prove a negative, so put the ball back in the DWP's court and ask them to prove she was working.

The chances of reclaiming any of this, let alone all, are pretty slim. Give TPAS a call (they deal with state pensions as well as private ones) when you have more information: https://www.pensionsadvisoryservice.org.uk

Meanwhile, do your best to reassure you parents that selling the house is quite definitely not going to happen for quite a number of different reasons.

Brynsam

This should give them a bit of comfort:

Official Error
1.24 This is usually an overpayment caused by an error or omission by an officer of the Department for Work and Pensions, or another government agency or department. However, these overpayments (or part of them), that fall to be determined under S71 of the Social Security Administration Act 1992, are routinely classified as Official Error, where the overpayment (or part of it) is not as a result of a failure to disclose or misrepresentation by the claimant but is as a result of an error arising under an award of benefit. Such overpayments are not recoverable under social security legislation. In December 2010 the Supreme Court1 held that for any payments made as part of an award of benefit, the social security framework provided the only powers of recovery and these official error overpayments where the error arose under an award of benefit are therefore written off without any recovery action being taken as they cannot be recovered by common law principles as the payment is made within a valid benefit award.

Source: https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/683470/benefit-overpayment-recovery-guide.pdf

kazwookie

Make sure your parents do NOTHING, for now, until they / you have all the facts, in writing.

Once they / you have the facts, take several days to read and re read what is being said / asked.

Check it is not a scam, ie look up phone numbers etc on the internet on old paper worth they have, do NOT use any phone numbers / web links recently recieved in case it is a scam.

Good luck

xylophone

Given the dates mentioned by the OP (2003, when the husband reached SPA and 2007 (Pensions Act abolished ADI but gave transitional protection), I don't think this letter will be a scam but will relate to some muddle with ADI.

I am guessing that the OP's mother was under SPA in 2003 but was financially dependent on her husband which made him eligible to claim the ADI to his state pension.

The ADI was abolished from 2010 but those already in receipt could continue to receive it up to the dependent's SPA or 2020 whichever was the earlier.

The OP does not give his mother's age - it is not inconceivable that she has not yet reached (or has only just reached) SPA - my own grandfather was fifteen years older than my grandmother.

Alice_Holt

Is this related to Pension Credit payments?

I would echo the advice for your parents not to panic, and don't do anything precipitately.

Any DWP decision can be challenged, as another poster has indicated if this has arisen though official error by the DWP then an overpayment cannot be recovered.
https://www.citizensadvice.org.uk/benefits/benefits-introduction/problems-with-benefits-and-tax-credits/benefit-overpayments/

If there is an recoverable overpayment, an agreed schedule of repayments can be arranged. This will be based on your parents expenditure and income. There will be no need to sell the house.

Do encourage your parents to get the information they may need to dispute overpayment.
Start with copies of bank statements - these should help show your mother was not working.
Her NI record might also be proof that she was not working.
Evidence from friends and family members?
HMRC tax records?

A Subject Access Request to the Pensions Service / DWP may be worth considering. This will get you the information they hold on their records. This could be the first step in disproving any overpayment came about as a result of non-declaration by your parents.
https://www.gov.uk/guidance/request-your-personal-information-from-the-department-for-work-and-pensions

If it relates to PC - check if an assessed income period applies.
"The assessed income period is a fundamental part of the design of Pension Credit. It was introduced to reduce the level of intrusion normally associated with an income-related benefit. During the assessed income period the customer is not required to report changes to capital or savings."

When you have all the paperwork:
1) Get advice from Age UK / your local advice agency / CAB.
Citizens Advice local offices are always very very busy, so you and your parents will need to be persistent and polite, and expect a waiting period.

2) If you believe the overpayment to be incorrect request a Mandatory Reconsideration of the DWP decision.
https://www.citizensadvice.org.uk/benefits/benefits-introduction/problems-with-benefits-and-tax-credits/challenging-a-benefit-decision/challenging-a-dwp-benefit-decision-on-or-after-28-october-2013/challenging-a-benefit-or-tax-credit-decision-asking-for-a-reconsideration/

Your local CAB may well have a benefits specialist who can help your parents through the appeal process if required.

watcher27

Thank you all for your replies!

I have now seen the letter and can verify it's not a scam.

I will edit the original post with pictures of the letter text.

anmarj

so your mum was working then. As xylophone has stated it will be to do with the ADI element paid to your step dad. When your mum started working did he at any point, call the Pension Service to tell them that she was working?


They are asking for confirmation of any earnings paid to your mum, if they were above or below that listed, if it was more than it has been listed your step dad may not have been entitled to the ADI payment.