Since October 2012, the Division for Work and Pensions (DWP) has had the ability to impose fines on profit claimants who obtain overpayments because of not informing authorities of a change in circumstances.
The ‘civil penalty’ is £50 and might be added to the quantity of the overpayment and might be recovered by the identical technique.
With a view to keep away from an overpayment, it is best to let the DWP know of any change in circumstances which will have an effect on your advantages, together with altering your identify, shifting home, or having a brand new addition to the household.
If the Authorities believes you intentionally didn’t inform them of a change in circumstances with a view to obtain an overpayment, you can be prosecuted for profit fraud.
Why may you be fined £50 by the DWP?
Turn2Us, a nationwide charity offering assist for individuals who battle financially, defined what may trigger a £50 civil penalty.
They defined that for a civil penalty to use, the overpayment should:
- have occurred after 1 October 2012, and
- be an quantity of £65.01 or extra, and
- be recoverable.
The overpayment of profit additionally should have been attributable to an individual:
- making an incorrect assertion, or
- negligently giving incorrect info, and
- that individual not taking ‘affordable steps’ to appropriate the error.
A civil penalty is not going to be utilized if the DWP decides to take motion below profit fraud provisions.
The charity additionally defined how one can problem the £50 high-quality. They mentioned: “If you happen to agree that you’ve been overpaid however you don’t assume it is best to have been given a civil penalty you possibly can problem the choice to provide you a civil penalty.
“You’ll first must request Obligatory Reconsideration of the choice. You’ve got one month to request Obligatory Reconsideration. You must clarify why you assume you shouldn’t have been given a civil penalty.
“If the DWP don’t change their choice, you possibly can enchantment to an Impartial Tribunal. You solely have one month from the date of the DWP’s choice in your request for Obligatory Reconsideration to request an enchantment.”
