Subsidy: CTB overpayment while suspended

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    CTB does get overpaid while “suspended”.

    The DWP say the overpayment is a technical one, but won’t state their reasons for thinking so. Their guidance is prone to wishful thinking sometimes.

    The definition of a tech overpayment seems to be that the period is in the future when you got the information. The overpayment created for the time the claim was suspended doesn’t meet this definition, though there’s also a future period which is a tech overpayment.

    Can anyone help me make sense of this?


    Because payment of CTB is paid for the year in advance if you suspend CTB nothing happens because payment has already been made. Prior to this change to the classification any period from the date you received an etd right upto the week you cancelled it was classed as LA error. What the DWP are now recognising is the fact you cannot just cancel a case because you get an etd – we have to suspend! and therefore they are recognising that we have taken action to prevent further o/ps by suspending the claim(although the reality is it’s already been paid)

    Hope this makes sense – it’s a change with regard to subsidy. If they didn’t make the change then it could severely affect how much Authorities receive in subsidy for LA error o/ps as could push over the thresholds.


    Are there many authorities gaining by the DWP’s approach?

    If you aren’t getting LA error subsidy you lose the 40% on claimant errors so you’d be worse off, and if you’re sure of LA error subsidy you lose that as well – but you still have an overpayment to recover.

    The DWP interpretation doesn’t seem so generous when the claimant moves NFA without paying up.

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