CIB_2762_2007
[2008] UKSSCSC CIB_2762_2007 (19 February 2008)
DECISION OF THE SOCIAL SECURITY COMMISSIONER
The background
"Not sure. I am in receipt of an occupational pension and enclose documents accordingly.
I am not sure if I have informed you previously of this pension. I was not aware that income support [obviously a slip for incapacity benefit] was means tested. I have declared it for tax purposes. Due to my illness and bereavement circumstances I have not been aware of any changes I should have informed people of."
It is not clear from the way in which the papers were put together in the Secretary of State's submission to the appeal tribunal just what documents the claimant enclosed, but at any rate further details as in the previous paragraph were obtained from her and from the scheme administrators. The form was stamped as received on 15 February 2006.
"This decision supersedes the decision made on 14/11/04 awarding Incapacity Benefit to [the claimant].
[The claimant] is entitled to Incapacity Benefit at the reduced weekly rate of £0.68 from and including 6/2/05 and she is entitled to Incapacity Benefit at a reduced weekly rate of £1.78 from and including 14/04/05.
This is because the law says that 50% of any pension income over £85.00 a week has to be deducted from entitlement to Incapacity Benefit."
There was no reference in the decision to any legislative provisions. The decision was noted as having been notified to the claimant on 8 March 2006 on a form/letter BF31.
The appeal tribunal's decision
"She had been alerted to the need to disclose the occupational pension in Part 7 of the claim form. Had she been in receipt of an occupational pension at the time of the completion of the claim form for incapacity benefit, it is likely that she would have provided full details. Part 7 of the claim form requires detailed information concerning pension income. The notes sheet that is part of the incapacity benefit claim pack makes it quite clear that pension income of over £85 per week gross will result in a decrease in any incapacity benefit in payment. The directions for disclosure of [the claimant's] pension income are unambiguous. She had been dealing with her late husband's affairs, her own tax affairs and with her daughter's disability living allowance. She had failed to disclose to the appropriate Department the material fact that she had been awarded a pension. As a consequence, an overpayment had arisen in the payment of incapacity benefit in the sum of £3,999.36 which is recoverable from her. The amount of the overpayment, for the period 6/2/05 to 16/2/06 inclusive, has been correctly calculated. Commissioner's decision CIS/4348/2003."
The appeal to the Commissioner
"However, it is arguable that the Secretary of State had no legal power on 6 March 2006 (prior to the amendment to regulation 7(2)(c) of the Social Security and Child Support (Decisions and Appeals) Regulations 1999 with effect from 6 April 2006) to make a superseding decision on the ground of relevant change of circumstances take effect before the date of the decision itself (ie 6 March 2006). The decision being superseded was an incapacity benefit decision and it appears likely that there had been an incapacity determination (see the definitions in regulation 7A). The relevant change of circumstances was not in relation to the incapacity determination. Accordingly, neither regulation 7(2)(c)(ii) nor regulation 7(2)(c)(iii) would seem to have applied, so that the effective date of the superseding decision would have to be as set out in section 10(5) of the Social Security Act 1998, the date of the superseding decision. If so, entitlement to incapacity benefit in the period from 16 February 2005 to 5 March 2006 could not have been altered to the claimant's detriment. There is little, if any, common sense in that outcome, but the flaw in the regulations was not repaired until 6 April 2006 and the claimant is entitled to have the legislation as made by the Secretary of State applied to her.
According to page 10 of the papers the decision dated 6 March 2006 was notified to the claimant by a letter dated 8 March 2006. Was the claimant's appeal signed on 4 June 2006 to be regarded as encompassing an appeal against that decision as well as against the overpayment recoverability decision? If not, did the appeal tribunal have power (being able to whatever the decision-maker of 8 May 2006 had power to do) to revise the decision of 6 March 2006 for official error (see Commissioner's decision CA/2650/2006)?"
"12. Section 71(5) or (5A) of the Administration Act (recoverability dependent on reversal, variation, revision or supersession of determination) shall not apply where the fact and circumstances of the misrepresentation or non-disclosure do not provide a basis for the decision pursuant to which the payment was made to be revised under section 9 of the Social Security Act 1998 or superseded under section 10 of the Act."
Mr Cahill stated that regulation 12 was generally applied in cases where instruments of payment had been stolen and entitlement remained unaffected, but asked whether it could apply where, as here, the circumstances of the non-disclosure, ie not disclosing at the proper time, meant that there was no basis for supersession for the relevant period of the decision pursuant to which the overpayment was made. If it did apply, there would have been no point in the appeal tribunal's adjourning.
The Commissioner's decision on the appeal
(Signed) J Mesher
Commissioner
Date: 19 February 2008