CBM130200 - Overpayments: initial action

Note: When sending customer, staff or process data to another individual or team, make sure you follow the latest data security guidelines or contact the Data Guardian / Data Security Team for advice.

Reasons not to follow this guidance

The normal basic procedures for dealing with overpayments should be followed. You do not need to follow this guidance if:

  • the overpayment can be recovered from the arrears due, follow the guidance in CBM130150

  • the overpayment is £110 or less, follow the guidance in CBM130400

  • there is a voluntary offer to repay, follow the guidance in CBM130500

  • there is suspicion of fraud refer the case to Compliance
  • the customer has died refer the case to to the Priority 1 team.

Introduction

An overpayment will be identified in other guidance while processing a change of circumstance or investigating non-compliance activity.

This guidance will go through how to establish disclosure, calculate the overpayment, and decide on the recoverability.

Guidance

{#step1}Step 1

Decide if further information is required to determine recoverability of the overpayment.

If you have all of the required information, go to Step 3.

If you do not have all of the required information:

  • contact the customer by phone, for how to do this use CBM100300
  • once you have all of the required information, go to Step 3.

If you do not have all the required information and are unable to contact the customer by phone:

  • issue the relevant form
  • BF the case
  • once you have all the required information or the BF period has expired, go to Step 2.

Note: The customer must provide the information required within one month of request (or a longer period where this is considered to be reasonable). Use the locally agreed BF periods to determine how long to wait for the return of the enquiries. Where the customer does not respond, follow the guidance in ‘Expired BF – customer fails to provide requested information in the required timescales’ using CBM150400.

{#step2}Step 2

If you have all of the required information, go to Step 3.

If you do not have all of the required information:

  • follow the process for ‘expired BF’ using CBM150400
  • go to Step 3.

Note: The overpayment action is still required even when there is no response to enquiries. Using all available facts, a considerative decision should be made to determine whether an amount was paid in excess of the award and should it be reasonable to expect recovery of the overpayment. This decision is to be treated as correct at the time of making, it can be revised upon receipt of new evidence and does not mean the original conclusion was an official error.

{#step3}Step 3

Decide the disclosure date of when the customer reported, or the Department became aware of, the change in circumstances.

An overpayment is recoverable from the date of change in circumstance up to and including the Sunday following the date of disclosure to the department.

  • check for earliest date that we were aware of change

Note: Disclosures from tax credits cannot be accepted unless confirmed they had advised the customer they would pass details of change to the Child Benefit Office.

Note: Disclosure at a local office (Job Centre Plus) is only acceptable if they mention Child Benefit.

{#step4}Step 4

Establish what caused money to be paid in excess of the award to determine the recoverability of an overpayment.

Note: For information on the causes of an overpayment, follow the guidance using CBM130100.

If the cause is due to misrepresentation or a failure to disclose:

  • the overpayment is recoverable
  • go to Step 5.

If the cause is due to an official error:

  • the overpayment is non recoverable

    Note: An official error over £20,000 requires an email to be sent with the details of the official error overpayment to the following central mailbox: Vote, Accounting (Corporate Finance) for authority to write off this amount. Do not record this amount on the OP1.

  • consider, under a balance of probabilities, that it is reasonable to expect knowledge of being paid money in excess of the award and has resulted in a failure of the duty to disclose information

    Note: Where the evidence suggests knowledge of being in receipt of more money than awarded some of the overpayment is treated as part recoverable. Examples of such evidence can be duplicated payments going into the same bank account, living in the same household as someone already in receipt of Child Benefit for the same child, or receiving ongoing payment after a decision letter confirmed an end to entitlement. The examples are not exhaustive and every case should be looked at individually.

  • go to Step 5.

{#step5}Step 5

  • check for payment made after a disclosure but before the change could be implemented

    Note: Such a payment should be treated as part non recoverable. This occurred due to the Child Benefit Office failing to prevent further payment.

  • check for payment made the day of or the previous day of disclosure

    Note: A ‘System Caused’ overpayment is where notification is received and it is too late to recall the credit. Where the change of circumstance is received on the day of crediting or after 12 noon on the day before crediting then the payment is recoverable. Further payment following the System Caused overpayment will result in the System Caused and following payment being treated as non-recoverable.

  • go to Step 6.

{#step6}Step 6

Calculate the overpayment using the ‘Child Benefit Arrears/OPymt Calculator’ in ‘SEES’ under ‘other Calculations’.

Complete the ‘Child Benefit Arrears/OPymt Calculator’ using these guidelines:

  • select ‘Calculation’ tab

  • select ‘CH44_calculation’

    Note: The CH44 will print through the Central Print Service unless set as default to your local printer.

  • complete boxes within the calculation table as follows
    • column 1 insert the first Monday of the overpayment period
    • column 2 insert the last Monday of the overpayment period
    • column 3 insert the number of children present in the award
    • column 4 select ‘higher rate’, ‘lower rate’, or ‘rate difference’ in the ‘Rate’ field
  • select ‘Calculate’
  • input the customers Child Benefit number and name
  • give brief details of the change in circumstances
    • insert date and source of disclosure

    • complete the appropriate box or boxes for system caused, recoverable, non-recoverable and official error

      Note: When an overpayment can be broken down to System Caused, part Recoverable, part Non Recoverable, and Official Error then include each element on the ‘CH44_Summary’.

If an official error or a non recoverable overpayment, follow the guidance in CBM130600.

If a recoverable overpayment, follow the guidance in CBM130700.

If a part official error / non recoverable and part recoverable overpayment:

Note: When reducing the part official error / non recoverable from the total amount overpaid and this brings the recoverable amount to £110 or less it is then a ‘small overpayment’ and you should follow the guidance in CBM130400.

  • take action on the official error / non recoverable amount, to do this follow the guidance in CBM130600
    and then
  • take action on the recoverable amount, to do this follow the guidance in CBM130600.