I have a similiar case but DWP has gone back about 10 years. Claimant was working and receiving Incap, DWP was notified that claimant was working but continued to pay Incap. They have cancelled (Jan 2013)the Incap back 10 years and as far as I can tell they have raised the o/p as Officai error so that would suggest they are not seeking recovery. If I was to remove the Incap for 10 years it would create a massive underpayment. I could appreacite if they customer had to repay Incap overpayment they could use the HB underpayment to make the apymnet. However, if DWP aren’t going to recover Incap o/p then the claimant would be able to also keep a rather large underpaymnet.
Should I raise the underpayment and issue payment to the claimant or should I treat as overpaid tax credits? If I don’t raise the underpayment where would I find this in the legislation?
Any help would be appreacited.
Michele…