Diminishing capital

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  • #38858
    zoe22
    Participant

    Hello,

    We have a case where we have applied diminishing capital to HB and CTB overpayment. The DWP have also applied diminishing capital for the JSA. They are insisting we should reduce the overpayment by the JSA amount as well and they want the Rent and Council tax figures so they can reduce the JSA overpayment by these figures as well!!
    But this doesn’t seem right because this would mean we are reducing the overpayments with double the amount of HB, CTB and JSA.

    Is this right?

    Thanks

    #109960
    Anonymous
    Inactive

    Hold on, are you talking about ‘diminution of capital’ or ‘diminishing notional capital’?

    Sounds like the DWP are talking about diminishing notional capital.

    #109961
    zoe22
    Participant

    Diminution of capital

    #109962
    Anonymous
    Inactive

    Well, they can insist all they want – but there’s nothing in HB Reg 103 or CTB Reg 88 that allows the authority to take into account overpaid JSA when calculating the net overpayment.

    Sounds to me like the DWP office/ officer hasn’t done a diminution of cap calculation before and hasn’t got a clue where to start.

    Where is a [rollingeyes] smiley when you need it?…

    I assume this wasn’t a notional capital case then?

    #109963
    zoe22
    Participant

    No not a notional capital case.

    It’s come from a joint fraud investigation and it’s the DWP investigator insisting the DWP decision maker is wrong and so are we!!

    She can’t get her head round the fact that the overpayment is more than his capital. The overpayment covers 6 years and the clmt still has over 16k now.

    Will call her back and try explain again…

    #109965
    Kevin D
    Participant

    CH/0314/2007 makes the point that calculations for “diminution” are separate for HB and CTB. I agree with Jerry; a further SEPARATE calc is needed for a DWP benefit. In other words, 3 separate individual calcs are required. Whether that is sensible or not is irrelevant; it’s the law.

    Jerry may be right about the experience / knowledge of the DWP officer but it is also possible the officer has had one of those momentary blind spots and mixed up “diminution” with “diminishing”.

    The relevant diminution legislation for JSA or IS is:

    Regulation 14 of The Social Security (Payments on account, overpayments and recovery) Regulations 1988 – SI 1988/664
    http://www.dwp.gov.uk/docs/a1-6519.pdf

    #110114
    Anonymous
    Guest

    [quote=zoe22]No not a notional capital case.

    It’s come from a joint fraud investigation and it’s the DWP investigator insisting the DWP decision maker is wrong and so are we!!

    She can’t get her head round the fact that the overpayment is more than his capital. The overpayment covers 6 years and the clmt still has over 16k now.

    Will call her back and try explain again…[/quote]

    This highlights well the problem with asking people to investigate abuse of a system of which they are not themselves fully conversant.

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