MW v The Secretary of State for Work and Pensions

24 February 2023

[2023] UKUT 50 (AAC)

Upper Tribunal

MW didn't tell the government his daughter moved in, leading to an overpayment of benefits and a fine. The court said he should have told them, but the fine was unfair because the government didn't follow the rules properly.

Key Facts

•Claimant (MW) received an overpayment of ESA (£17,854.75) due to failure to notify the DWP that his adult daughter moved in, impacting his Severe Disability Premium (SDP).
•A £50 civil penalty was also imposed.
•The claimant argued he notified the local authority, believing this sufficed, and that the DWP already knew due to his daughter's concurrent ESA claim from the same address.
•The First-tier Tribunal (FTT) dismissed both appeals.
•The Upper Tribunal (UT) granted permission to appeal.

Legal Principles

Claimants must notify the relevant official of changes affecting benefit entitlement; they cannot assume internal DWP communication is infallible.

Hinchy v SSWP [2005] UKHL 16

Disclosure by a third party only discharges a claimant's duty if specific conditions are met (information given to the relevant office, claimant aware, reasonable belief action unnecessary, not casual disclosure).

R(SB) 15/87

A civil penalty under s.115D Social Security Administration Act 1992 is discretionary and requires consideration of reasonable excuse and mitigating circumstances.

CT v SSWP (ESA) [2021] UKUT 6 (AAC)

Outcomes

Overpayment appeal dismissed.

The UT upheld the FTT's finding that MW had a duty to disclose the change of circumstances under reg. 32(1B) because he knew he should report it, regardless of whether ESA40 leaflets were sent. The UT applied Hinchy and R(SB) 15/87, rejecting the argument that the DWP implicitly knew through the daughter's ESA claim.

Civil penalty appeal allowed.

The UT found the FTT failed to adequately explain why MW lacked a reasonable excuse for non-disclosure and didn't properly exercise discretion regarding the civil penalty. The UT remade the decision, finding MW not liable for the £50 penalty.

MW v The Secretary of State for Work and Pensions

Key Facts

Legal Principles

Outcomes

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