GH v Scarborough Borough Council (HB)
Housing benefit (HB) - overpayment – official error – successful appeal against DWP decision
Summary
The claimant was transferred from incapacity benefit to employment and support allowance (ESA) from 3 November 2011. The claimant appealed about the amount of ESA he was awarded. That appeal (the ‘ESA appeal’) was allowed in August 2012, but the claimant had not attended the hearing, and was not told by the DWP that his ESA was increased, with arrears from 3 November 2011, until 25 October 2012. The increased ESA meant the claimant’s HB entitlement was reduced, and there was an overpayment from 3 November 2011; however, the local authority did not become aware of the increased ESA until March 2013. At that point, it decided that there was a recoverable overpayment for the period 3 November 2011 to 4 November 2012.
The First-tier Tribunal dismissed the claimant’s appeal, holding that the overpayment was caused by the claimant not informing the local authority that his ESA appeal had been allowed, and not by official error.
Judge Markus QC allowed the claimant’s further appeal, substituting a decision that the overpayment was not recoverable. The tribunal had erred in deciding that the overpayment was recoverable – in particular in not having regard to the fact that a substantial portion of the overpayment period was before the decision of the ESA tribunal, in not making a finding of fact about when the claimant actually became aware of the ESA tribunal decision, and in its approach to what constituted ‘official error’ (paragraphs 19–22). Regarding the latter, the judge approved the decision of Commissioner (as he then was) Williams in CH/943/2003 in holding that where an appeal tribunal finds a decision of the DWP or HMRC to have been wrong, that means that the original decision was an ‘official error’. The judge respectfully disapproved the contrary finding that had been made in CH/38/2008. It was the case that (applying regulation 100), as stated in CH/943/2003, the claimant could still have been found to have contributed to the official error, or to reasonably have been expected to have realised that his HB was being overpaid, so removing his defence against recovery of the overpayment. However, there was nothing in the present case to suggest that either of those applied (paragraphs 22–26).
On the facts of the case, the judge found that the claimant was not aware of the decision of his ESA tribunal until 25 October 2012, so could not have realised the overpayment was occurring before then. On the balance of probabilities, he would not have received the letter of that date until early the following week, and although he did not notify the local authority about it, he could not have done so to allow the authority to change his award before 4 November 2012. The result was that the entire overpayment in the period 3 November 2011 to 4 November 2012 was caused by official error and was not recoverable (paragraphs 31–34).