Rate of Recovery from ongoing HB

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    I call to the wise ones again.

    The directive/guidance is that if the cause of OP is fraud, maximum weekly deduction = £11.60 + 50% of earned income disregard.

    If it is a regular OP, then the recommended deduction is £8.70 + 50% of income disregard.

    Please, I want to know if there is a regulation to back this action or if it is just guidance.

    We have a claimant who is pleading with us to reduce the rate of recovery.

    Before looking into the merits or otherwise of the claimant’s request, it will be nice to know whether what we are doing is backed by law/DWP guidance.

    I have searched high and low but couldn’t find any reg to back this up.



    I am only aware of this as DWP guidance, and that it is “good practice” to add on 50% of disregarded earned income. It is not a requirement.

    In all cases of recovery from ongoing entitlement whether it is at the regular rate or whether it has the 50% disregard added on you must always take account of the claimants financial circumstances and any other circumstances that may be relevant eg serious illness etc.

    If a claimant states they cannot afford to repay the debt at the rate it has been set we usually request evidence of income and expenditure, and I cannot think of any occasion where we have refused to reduce the recovery rate.


    Michael, if you were looking for legal justification for those rates there is a formula in HB Reg 102 paras (2) and (3), but you have to work it out for yourself based on each year’s applicable amount for a single person aged 25.

    For non-fraud it is 3 x 5%, with the 5% rounded up to the next 5p
    For fraud it is 4 x 5%, with the 5% rounded to the nearest 10p

    In addition, 50% of the disregard is added under para (4).

    Is that what you were after? In all cases, the Reg says the recovery rate is “not more than” these amounts, so the discretion to reduce it a bit is there in Reg 102 as well.


    Hi Peter,

    Exactly! Thank you so very much!

    It’s nice to know that Hbinfo offers after sales service!!!

    Much appreciated.


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