Benefit claimants could be hit with a £50 fine for not reporting certain changes.
The Department for Work and Pensions can impose the fine, known as a civil penalty, for claimants who have been overpaid on their benefits. The fixed-rate fine is often added to the total amount of the overpayment with any repayments being claimed back by the DWP in a similar manner.
People can avoid a civil penalty as long as they take what the DWP calls 'reasonable steps' to correct the overpayment. Generally, the fine is imposed if the DWP determines that a person has 'negligently' provided them with incorrect information, or failed to provide some necessary information that affected how much they're paid.
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In order to mitigate any penalties from overpayments, a claimant should ensure the DWP has all the relevant information as to what could have led to the overpayment and if you have a "reasonable excuse" for failing to provide the correct information, reports the Manchester Evening News. For example, you may not have had the most up-to-date confirmation of your payment amount on your pension from your provider which means you wouldn't have been able to tell the DWP.
How to avoid a benefit overpayment and fine
Charity Turn2Us advises claimants to ensure they provide "accurate information and answer questions correctly" when making a claim. It is also advised that they read letters and leaflets carefully to ensure the DWP holds the correct records of what you should be paid.
Furthermore, if you experience any changes to your circumstances, you should tell the DWP as soon as you know of them and should also report any unexpected or duplicate benefit payments as soon as possible. If you have been issued the £50 fine, you may be able to challenge it if you believe it is unwarranted.
In order to do this, you will have to request Mandatory Reconsideration of the DWP's decision. However, there is only one month to do this after the decision is made.
When challenging the decision, you should provide your reasons for thinking you should not have been given a civil penalty. If the DWP still fails to change its decision, you can go one step further and make an appeal to an Independent Tribunal.
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