§ Mr. FlynnTo ask the Secretary of State for Social Security when instructions were first issued to local offices of his Department regarding the right to recover overpayments of benefits under common law in cases not covered by statutory provisions for recovery of overpayments.
§ Mr. BurtThe administration of benefits is a matter for Mr. Michael Bichard, the chief executive of the Benefits Agency. He will write to the hon. Member with such information as is available.
Letter from M. Bichard to Mr. Paul Flynn, dated 27 January 1994.
The Secretary of State for Social Security has asked me to reply to your recent Parliamentary Question asking about the instructions issued to the Department's Local Offices about the recovery of overpayments under common law.
The Benefits Agency (BA) seeks recovery under Section 71 and Section 74 of the Social Security Administration Act 1992. Under Section 71 the recovery is sought if the overpayment has been the result of "misrepresentation" or "failure to disclose" a material fact by the beneficiary. Section 74 applies where there has been a duplicaiton of Income Support and another benefit.
Recoveries under Sections 71 and 74 are dependant on determinations made by the independent adjudicating authorities. Under Section 71 they decide whether benefit is overpaid and the amount. For Section 74 they decide the amount that is recoverable.
There may be occasions where neither Section 71 nor Section 74 applies but benefit has been paid incorrectly and on the facts of the particular case the beneficiary ought to have realised that too much benefit was being paid. As there has been no misrepresentation or failure to disclose a material fact, and other considerations of Section 74 do not apply, there is no basis for the adjudication officer to decide on the overpayment. Nevertheless the BA is entitled to seek repayment of the money overpaid in such circumstances under the established principle of common law that where a person has received money to which he is not entitled, then he should repay it. This arrangement has existed for many years and has always been contained in instructions issued to Local Offices. No recent changes in instructions have therefore been necessary.
I hope you find this reply helpful.