PART 5The process of recovery

Recovery by deduction from state pension credit14

1

The following paragraphs apply where the recoverable amount falls to be recovered by deduction from state pension credit payable to the liable person.

2

Subject to paragraphs (4) and (5), regulation 10 is to apply to the amount of state pension credit to which the liable person is presently entitled to the extent that there may be recovered in any one benefit week—

a

in a case to which paragraph (3) applies, an amount equivalent to not more than 5 times 5 per cent. of the standard allowance for a single person aged 25 or over under regulation 36 of the UC Regulations; and

b

in any other case, an amount equivalent to not more than 3 times 5 per cent. of that allowance.

3

This paragraph applies where deductions from state pension credit are made to recover from the liable person—

a

the whole or part of an overpayment in respect of which the liable person has—

i

been found guilty of an offence whether under statute or otherwise;

ii

made an admission after caution of deception or fraud for the purpose of obtaining universal credit, jobseeker’s allowance or employment and support allowance; or

iii

agreed to pay a penalty under section 115A of the Act (penalty as an alternative to prosecution) and the agreement has not been withdrawn; or

b

a payment which is recoverable by virtue of section 71ZH of the Act (hardship payments).

4

Where the amount deductible under paragraph (2) is not a multiple of five pence, it is to be rounded up to the next higher such multiple.

5

No deduction made under paragraph (2) is to be applied so as to reduce the state pension credit in respect of a benefit week to less than 10 pence.

6

In this regulation, “benefit week” has the same meaning as in regulation 2(1) of the State Pension Credit Regulations 200221.