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

watcher27

anmarj wrote: »

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.

I've updated the original thread with more details.

Yes, mum started working part time around 2005, her earnings were below what is listed, so I believe.

watcher27

xylophone wrote: »

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.

Thank you for this! My mum is currently 62.

Alice_Holt

watcher27 wrote: »

Yes, mum started working part time around 2005, her earnings were below what is listed, so I believe.

She will need to supply the information about her earnings. Has she P60's (or can she obtain these)?

Some info on ADI top ups to state pension -
"Adult Dependency Increase
Adult Dependency Increase is a payment for a partner who is financially dependent on you. You may be getting this as part of your State Pension.
Adult Dependency Increase closed to new applications in 2010.

From 6 April 2020 all payments will stop. If you get Adult Dependency Increase now, you!!!8217;ll keep getting it until then, as long as you!!!8217;re eligible.

When payments stop you may be eligible to apply for Pension Credit or Universal Credit.

Changes in circumstances
If you get Adult Dependency Increase for a spouse or anyone else that lives with you, you!!!8217;ll need to report any change in circumstances to the Pension Centre. You must tell them if the person you!!!8217;re claiming for:
- starts work
- stops living with you
- gets a state benefit
- gets an occupational or personal pension
If you!!!8217;re a man claiming the increase for your wife, you!!!8217;ll stop receiving the increase when she reaches State Pension age. You don!!!8217;t need to tell the Pension Centre about this."

Your step father would have received letters from the DWP with information about notifying them of any change of circumstances.
As anmarg has said does your stepfather have any proof that he notified the DWP of the fact that your mum was working?
If he does, it's possible that he could challenge the overpayment on the basis of official error. - i.e that he fulfilled his obligations by informing them, but they failed to act on that information.
If he doesn't have proof (or didn't notify) then the overpayment would seem to be recoverable by the DWP.

Once your mother has supplied the information required by the DWP about her earnings, the DWP will calculate any actual overpayments using her actual earnings.

Your parents will then need to supply the DWP with a financial I & E report
https://www.turn2us.org.uk/Benefit-guides/Benefits-Overpayment/Print-Benefits-Overpayment
and a repayment schedule can then be agreed.

A charity like stepchange may be able to help in preparing the Income & Expenditure report (or their online guides may help you ensure to all expenditure is included).

watcher27

Alice_Holt wrote: »

She will need to supply the information about her earnings. Has she P60's (or can she obtain these)?

Some info on ADI top ups to state pension -
"Adult Dependency Increase
Adult Dependency Increase is a payment for a partner who is financially dependent on you. You may be getting this as part of your State Pension.
Adult Dependency Increase closed to new applications in 2010.

From 6 April 2020 all payments will stop. If you get Adult Dependency Increase now, you!!!8217;ll keep getting it until then, as long as you!!!8217;re eligible.

When payments stop you may be eligible to apply for Pension Credit or Universal Credit.

Changes in circumstances
If you get Adult Dependency Increase for a spouse or anyone else that lives with you, you!!!8217;ll need to report any change in circumstances to the Pension Centre. You must tell them if the person you!!!8217;re claiming for:
- starts work
- stops living with you
- gets a state benefit
- gets an occupational or personal pension
If you!!!8217;re a man claiming the increase for your wife, you!!!8217;ll stop receiving the increase when she reaches State Pension age. You don!!!8217;t need to tell the Pension Centre about this."

Your step father would have received letters from the DWP with information about notifying them of any change of circumstances.
As anmarg has said does your stepfather have any proof that he notified the DWP of the fact that your mum was working?
If he does, it's possible that he could challenge the overpayment on the basis of official error. - i.e that he fulfilled his obligations by informing them, but they failed to act on that information.
If he doesn't have proof (or didn't notify) then the overpayment would seem to be recoverable by the DWP.

Once your mother has supplied the information required by the DWP about her earnings, the DWP will calculate any actual overpayments using her actual earnings.

Your parents will then need to supply the DWP with a financial I & E report
https://www.turn2us.org.uk/Benefit-guides/Benefits-Overpayment/Print-Benefits-Overpayment
and a repayment schedule can then be agreed.

A charity like stepchange may be able to help in preparing the Income & Expenditure report (or their online guides may help you ensure to all expenditure is included).

Thank you for this info Alice!

My mum doesn't have wage slips/P60's going back that far.

I thought about contacting the bank, but they only keep records for 7 years.

The lady from DWP did say to my mum on the phone that my dad must have had forms etc, but they are both adamant they haven't filled anything in or had any correspondence, it was all done over the phone.

And my dad is old school and is very fastidious with keeping all records and financial information, so they are both very confused by this whole thing and don't really know what's going on

EDIT: Just seen this sentence on the overpayments form you linked too. It states "Please note: Your duty to report changes of circumstances is set out in the letters awarding benefit to you. If for some reason you were not notified of your obligations, an overpayment may not be recoverable."

My parents are adamant they received no correspondence regarding this payment!

xylophone

Your father will receive an annual statement of increase in benefit in respect of his state pension.

Was there nothing in or with those statements to indicate what should be done in the event of a change of circumstances?

What information does your mother have concerning her earnings since 2003?

watcher27

xylophone wrote: »

Your father will receive an annual statement of increase in benefit in respect of his state pension.

Was there nothing in or with those statements to indicate what should be done in the event of a change of circumstances?

What information does your mother have concerning her earnings since 2003?

I don't believe so, but again, they were told they would be getting this extra payment over the phone and were both not sure why they were getting it etc so never looked into it I think.

My mum kept wage slips for 3 years then shredded them.

She has spoken to her old employer though (large retail chain), and they say they can pull up all her details/history.

The lady from DWP already knew who she had been employed with, and wanted my mum to find out if she started with them in 2003. Hopefully when her old employer gets back to her we will have some more info.

xylophone

And my dad is old school and is very fastidious with keeping all records and financial information,

Ask your father to check all communications he has received from DWP since SPA.

There should be the annual letter and possibly information booklets.

GunJack

Ths may be a bit Eastfield, but if the mum has no work docs from 2003, what about logging on to check her state pension, and following the link to NI contributions? This will indicate if she had any NI paid for by employment or credited for each year so may be helpful in showing employment or lack of in that year??

xylophone

Your mother can check her state pension situation here

https://www.gov.uk/check-state-pension

watcher27

My parents are booking an appointment with CAB tomorrow.


One odd thing is, the lady from the DWP told my mum that my dad must of filled out forms to apply for this etc, but when my mum asked her for copies, she was told they don't have them as they don't keeo paperwork that long!


So neither side seems to have any paperwork on this!?