Claimants win overpayments ruling

15/10/2009

A court ruling made yesterday (October 14th) means that many hard-up Britons will be able to keep state benefits that have previously been overpaid by the government.

The case was originally brought by the Child Poverty Action Group (CPAG), after 65,000 people who were on benefits were told by the government that they could face legal action if they did not pay back the money, which had been given to them in error.

However, the new ruling will allow all those who did not deliberately cause the overpayments to be made - such as through lying to a benefits supervisor - to keep the benefits.

The Court of Appeal also decided that such letters should not be sent out in future.

Commenting on the decision, CPAG solicitor Sarah Clarke said: "We brought this case because we know that letters sent to vulnerable claimants threatening court action if they do not repay have caused considerable distress.

"We are delighted with the ruling that the DWP cannot recover these overpayments through the courts."

Government threats of legal action took place between March 2006 and February 2007.

Tags; Income Worries and Debt, Young Family Finances, Retirement Money Problems,

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