DWP Overpayments

chrisoconnr

I've recently received a letter stating I was overpaid £342.61 in tax credits in 2013. 

I realise that it can't be reclaimed through the courts due to the 6 year limitation act, but they can't just claim this through an attachment of earnings order without showing any evidence as to how or why it's owed can they? 

I've requested documentation proving that I owe this and have had nothing but DWP Debt Management have now said I need to pay. 

Alice_Holt

See  https://revenuebenefits.org.uk/tax-credits/guidance/how-to-deal-with-hmrc/dealing-with-debt/

https://revenuebenefits.org.uk/tax-credits/guidance/how-to-deal-with-hmrc/challenging-overpayments/

Icequeen1

Yes, they can do an attachment of earnings order. The notification is on the final award notice for the year - so your last award notice for that tax year would have included the overpayment. That meets the legal obligation of HMRC. DWP are just dealing with the recovery, they don't get involved in the underlying debt issues. 

They don't need to prove anything further 

TELLIT01

I didn't think there was a 6 year limit for DWP recovering overpayment.

Icequeen1

TELLIT01 said:

I didn't think there was a 6 year limit for DWP recovering overpayment.

There isn't. Tax credit overpayments are covered by the Limitation Act, so there is a 6 year time limit but that only covers county court action. So it doesn't stop HMRC handing the debt to DWP to recover via an attachment of earnings order or by reducing ongoing UC payments. 

gbhxu

Icequeen1 said:

TELLIT01 said:

I didn't think there was a 6 year limit for DWP recovering overpayment.

There isn't. Tax credit overpayments are covered by the Limitation Act, so there is a 6 year time limit but that only covers county court action. So it doesn't stop HMRC handing the debt to DWP to recover via an attachment of earnings order or by reducing ongoing UC payments. 

What about Section 187 of The Social Security Administration Act 1992 or even the wording on DWP award letters "the law says you need to live on?"

poppy12345

gbhxu said:

Icequeen1 said:

TELLIT01 said:

I didn't think there was a 6 year limit for DWP recovering overpayment.

There isn't. Tax credit overpayments are covered by the Limitation Act, so there is a 6 year time limit but that only covers county court action. So it doesn't stop HMRC handing the debt to DWP to recover via an attachment of earnings order or by reducing ongoing UC payments. 

What about Section 187 of The Social Security Administration Act 1992 or even the wording on DWP award letters "the law says you need to live on?"

Not sure what that has to do with a debt. If you owe money because of an overpayment of a benefit then this will need to be repaid back.

TELLIT01

gbhxu said:

Icequeen1 said:

TELLIT01 said:

I didn't think there was a 6 year limit for DWP recovering overpayment.

There isn't. Tax credit overpayments are covered by the Limitation Act, so there is a 6 year time limit but that only covers county court action. So it doesn't stop HMRC handing the debt to DWP to recover via an attachment of earnings order or by reducing ongoing UC payments. 

What about Section 187 of The Social Security Administration Act 1992 or even the wording on DWP award letters "the law says you need to live on?"

There are limits on how much benefit payments can be reduced by, but they certainly can be reduced.

Icequeen1

gbhxu said:

Icequeen1 said:

TELLIT01 said:

I didn't think there was a 6 year limit for DWP recovering overpayment.

There isn't. Tax credit overpayments are covered by the Limitation Act, so there is a 6 year time limit but that only covers county court action. So it doesn't stop HMRC handing the debt to DWP to recover via an attachment of earnings order or by reducing ongoing UC payments. 

What about Section 187 of The Social Security Administration Act 1992 or even the wording on DWP award letters "the law says you need to live on?"

There is a similar provision in Section 45 of the Tax Credits Act 2002 but i don't see how that is relevant. Those provisions say that the right to payments of tax credits/benefits cannot be assigned to any other person - it must be paid to the person entitled and can't be diverted, for example to pay creditors. But this isn't about a payment of tax credits or DWP benefits, it is about a debt. 

 

NedS

Repayment rates (the amount they can take back from benefits) for over-payments are published here:

https://www.gov.uk/government/publications/benefit-and-pension-rates-2021-to-2022/benefit-and-pension-rates-2021-to-2022#universal-credit

I'm not sure on limits for attachment of earnings, assuming there are limits.

calcotti

NedS said:

I'm not sure on limits for attachment of earnings, assuming there are limits.

There's a guide here
https://www.gov.uk/government/publications/direct-earnings-attachments-an-employers-guide/direct-earnings-attachment-a-more-detailed-guide
Appendix B gives rates of deduction.