August 2012 - 50 Penalties for Claimant Error

08/08/2012
New regulations have been issued that provide for the introduction of a £50 penalty in cases of claimant error.
From 1 October 2012, the DWP or local authorities can impose a £50 penalty in the event of a claimant –

Making an incorrect statement or representation or negligently giving incorrect information or evidence in connection with a claim for or award of a relevant social security benefit without taking reasonable steps to correct it of

 

Failing, without reasonable excuse, to provide information or evidence about a claim for or award of a relevant social security benefit in accordance with requirements imposed by an appropriate authority or

 

Failing, without reasonable excuse, to notify the appropriate authority of a relevant change of circumstances relating to an award of a relevant social security benefit


For a penalty to be imposed, the relevant action or failure to take action would have to result in an overpayment of benefit.
Only one civil penalty will apply even where a failure to disclose information or provision of an incorrect statement may result in more than one overpayment of benefit.  Where a civil penalty is imposed it will be added to the overpayment amount, and will be recoverable by the same means as the overpayment.

 

 

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