15 Jul 2010

Paying back benefits overpayments

A correspondent writes:
I used to work for the Central Recovery Group, whose job was to get back any overpaid benefits (only a minority are prosecuted for Fraud), I'm not sure if CRG exists any more but they dealt with the whole country. Originally, I would input the overpayment details on to the computer systems, the target was to input 100 cases a day, and there were about 10 of us doing this every day! This generated letters to "our customers" informing them how to pay back their overpayment, these would usually come back as "not known at this address".

So another section of about 10 people would work full-time tracing people. I then moved to this section and people could be traced using their national insurance numbers to where they worked, in the vast majority of cases it turned out that they were still at the original address. But imagine the time and money it cost to establish this.

I then ended up on the section where we would negotiate with customers to repay their overpayments. A minority would offer a reasonable amount and, hopefully, would set up a direct debit so that the overpayment would start to be repaid. The majority would haggle for the lowest amount possible, some even at one pound a week. Even then there was no guarantee that they would actually keep to this repayment, they would pay for a couple of weeks then leave it, then make another payment here and there. Again, think of the time and money spent sending reminders to these people. Only a minority would end up with an attachment of earnings.

Whenever they stopped working and returned to benefits, their overpayment would return to the D.W.P., who would make deductions from their benefits. Bizarrely, this is a quicker way of getting the money back! If they came off benefits, the overpayment would return to CRG, who would write again (and post would be returned again, so the whole saga starts over). Nobody was ever visited in person by C.R.G but we would have a team in the evening who tried ringing customers. Bailiffs were never used, can you imagine a credit card company behaving like this?

I agree with you that someone convicted of benefit fraud should stop receiving benefits till they have repaid their ill-gotten gains, although I've seen repayment agreements which would take 50 years before being paid off. But this will never happen! So whenever, you see a case where the defendant is going to pay back the overpayment, just think on about how little they will pay and how long it will take. Essentially they have got interest free unsecured loans and they can pay back as and when they feel like it. Even with deductions from benefits they can ask (and get) reduced deductions as they usually have a load of other debts which they have no intention of paying.
My view remains that these people do it for the money. So hit them in the pocket. It was money that motivated them, and a financial penalty will help to deter them.

Benefit thieves should have to repay twice what they've stolen, and should not be eligible for any further benefits – including tax credits - until they have. A confiscation order should be automatic and immediate.

If you don't punish people who are convicted of an easy crime, the offence will continue to look attractive.


Anonymous said...

Don't be so bloody judgemental. Every case is different and should be treated as such.

Anonymous said...

Every case is not different. Each case is someone claiming what they are not entitled to. They know exactly what they are doing and should be made to pay back what they have stolen.

Anonymous said...

All cases are different. i was charged with claiming an over payment of bennifit, and am still paying it back,9a large amount of money,that DWP said, was paid in error as they put me on the wrong bennifit to start with

Anonymous said...

I am currently being taken to court at the moment because of an admin error they even sent out letters saying I was entitled to council tax benefit and now i am being treated like a criminal when i reported my change in circumstances stupid people cant be bothered to do their jobs so we get blamed for it. this always happens and something needs to be done about it i will certainly not be paying back mine haha get mad.

Anonymous said...

I am being done for it to yet they have not done there home work again I will see them in court im being told I was not aloud benefits as a single mum of 2 who has split from domestic husband yet I can prove from court case police that we are not together but still apparently that will not matter in there case so I don't give a crap if you worked there its something I would not brag about

Anonymous said...

Every case is individual. I have just had notice of significant overpayment which I will challenge but will have to pay and why? No not because I am a low life fraud wter but because do departmental error and a rather failed DM process, I too will see them in court!

Ross said...

I have a child in the Philippines. I can not get help for her. I am white English . Yet someone comes here from Poland or some where else in the EU to work and gets the benefits. The Agency pays them and sends money to there country's for there children. And thay are not even from the UK and have not paid tax or NI stamps. Yet i have but am now disabled. . Something. Is wrong very much wrong .now the agency wants the money. Back. But if I was from Poland or the EU they will not want it back...My child is English UK half Filipino. Reg with UK gov .

Jackie said...

The social make lots of ongoing mistakes, they conveniently lose claims for there own personal gain, I've had my ni number used by someone else, and told I was working for 2 companies one of which I've never heard of, the same thing happened to a friend, someone was using her ni number in Birmingham to claim her child benefit for her 3 children, my husband had his identity stolen from a lic Indian post office for a driving liscence application they even tried to put through the cheque id cancelled, my daughters has not received a penny in 4 months for her and the baby, 2 forms apparently we haven't received or they've not sent and we have the original letter so I'm gonna fight for her 1009 pound as her and the baby need it, my husband is paying back for a claim we did not make as they could not be bothered to amend there system, and we only got 8 a week off rent when we did claim, it took an mp to get my daughter and baby on council list as they apparently was not eligible although she claimed nothing and was on maternity leave, so as far as benefits cheats are concerned, it's us who are cheated not the system