TCM0240160 - Payment - work lists: Suspended Overpayments work list

Background

When an award is finalised, a Finalised Award Notice is sent to the customer. This will include information about whether the award was

  • overpaid
  • underpaid
  • balanced.

If the customer has an overpayment and they have a continuing award, the overpayment will be recovered from their new award at a rate of 10%, 25%, 50% or 100%. This is called cross-year recovery.

If the customer has an overpayment but there is not a continuing award for that family, then the recovery method will be direct. This means that 42 days after the Finalised Award Notice has been issued, a form TC610 Notice to Pay will be issued to the customer for them to use to make the repayment within 42 days using the payslip.

The Suspended Overpayments work list will detail cases where the recovery of the overpayment has been suspended for one of the following reasons

  • Compliance enquiry has started - this will be set up if there is a Compliance marker prior to sending the overpayment details to Debt Management and Banking (DMB)
  • an appeal has been set up - this will be set up when an appeal is entered in Function MAINTAIN APPEAL
  • all addresses are RLS - this will be set up if there’s an RLS marker prior to issuing a Notice to Pay or before notifying DMB
  • award is incorrectly finalised - if an award has been finalised in error and the marker has been set in Function MANAGE FINALISATION it will suspend any recovery until it has been corrected and refinalised
  • formal time to pay arrangement - this will be set if DMB set up a Time to Pay using the tax credits computer
  • manual remission is present - this is a check to determine if the remission that has been set is still correct. Function VIEW HOUSEHOLD ACCOUNT will apply this check when
  • the award period is being reviewed for the first time and a manual remission is present

or- the entitlement for the award period has changed and there is a manual remission present

  • working hours have reduced to below 16 weekly - this is a check to determine if the WTC overpayment was due to the customer’s working hours becoming less than 16.

Where one of the following suspension reasons exists, the normal cycle of overpayment recovery will be halted and a review date of today’s date plus 90 days will be added

  • Appeal
  • Incorrectly Finalised
  • RLS
  • Time to Pay.

Once the review date has been reached the case will appear on the Suspended Overpayments work list.

A Suspended Overpayments work list entry is created straight away and no review date is set in the case of the following suspension reasons

  • Compliance
  • Manual Remission
  • Working Hours.

All the suspension reasons are used when the overpayment is being recovered directly.

Manual Remission and Working Hours can also be used when the overpayment is being recovered by cross-year.

The suspensions can be set at any point in the recovery cycle. If the suspension is removed then the Suspended Overpayments work list item is deleted and recovery is recommenced from when the suspension was set.

On opening the Suspended Overpayments work list, you will be taken to the Maintain Worklist screen where you can check the following details

  • creation date
  • customer 1 NINO
  • customer 1 name
  • action date
  • award end date
  • reason for suspension.

On the Maintain Worklist screen, the reason for suspension will be shown as a code. These are

  • A - Appeal
  • C - Compliance
  • I - Incorrectly Finalised
  • R - RLS
  • T - Time to Pay
  • U - Unchecked Manual Remission
  • W - Working Hours Reduced to less than 16.

Note: Where there is more than one suspension reason, all codes will be put in the same field and separated by commas. Only one Suspended Overpayments work list entry will be created and each reason will have to be worked separately.

By selecting the entry on the Maintain Worklist screen, you will be taken to the Worklist Entry Details screen where you will be able to check the following information

  • amount of the overpayment
  • customer 2 NINO, if applicable
  • customer 2 name, if applicable
  • abbreviation for the reason for suspension.

From the Suspended Overpayments work list, if you select the case you want to look at, then select ‘File’ from the toolbar menu, then select ‘Next Function’ from the options available, you can then go to the following functions

  • Function VIEW HOUSEHOLD ACCOUNT
  • Function VIEW OVERPAYMENT
  • Function VIEW APPLICATION
  • Function MAINTAIN HOUSEHOLD NOTES.

Guidance

Step 1

If you are dealing with the ‘Suspended Overpayments’ worklist, go to Step 2.

If the case is expired BF for the Unchecked Manual Remission, go to Step 7.

Step 2

Check the reason on the ‘Suspended Overpayments’ work list. For how to do this, use TCM1000004.

If the reason is ‘A’ for Appeal or ‘C’ for Compliance, take no further action.

Note: Teams working Appeal and Compliance cases will remove markers when action is completed.

If the reason is ‘I’ for Incorrectly Finalised

  • set an action date of 90 days from todays date. For how to do this, use TCM1000008.
  • take no further action.

Note: Teams working Incorrectly Finalised cases remove markers when their action is complete. These teams have checks to ensure the marker is removed. Once the marker has been removed the cases will be automatically deleted from the ‘Suspended Overpayments’ work list and recovery, if still applicable will recommence.

If the reason is R for RLS, go to Step 3.

If the reason is T for Time to Pay, go to Step 5.

If the reason is U for Unchecked Manual Remission, go to Step 7.

If the reason is W for Working Hours Reduced to less than 16, go to Step 18.

Note: If there is more than one suspension reason, you must work each one in turn. You can work them in any order, but if RLS is a reason, you must work this last.

Step 3

For RLS cases consider any outstanding overpayments.

If there is an outstanding overpayment

  • identify the entry in the ‘Outstanding Overpayment’ field
  • make a note of this entry. For how to do this, use TCM1000386
  • check household notes to see if notification has been received that customer has died. For how to do this, use TCM1000067
  • go to Step 4.

If there is not an outstanding overpayment

  • delete the item from the ‘Suspended Overpayments’ worklist
  • take no further action.

Step 4

If notification has been received that the customer has died

Note: consider the standardised messages. For how to do this, use TCM0166040.

  • remit the overpayment by using ‘Remission Class 2 – Death No estate and Insolvency’. For how to do this, use TCM0230060.
  • make a note of the remission on the ‘Remissions’ Database
  • update household notes selecting the category ‘Debt Recovery’
  • select the ‘Retained’ checkbox
  • enter message OW55 from TCM0166040. For how to do this, use TCM1000001
  • take no further action.

If notification has not been received that the customer has died

  • remit the overpayment by using ‘Remission Class 1 – Gone Unknown’. For how to do this, use TCM0230060
  • make a note of the remission on the ‘Remissions’ Database
  • update household notes selecting the category ‘Debt Recovery’
  • select the ‘Retained’ checkbox
  • enter message OW08 from TCM0166040. For how to do this, use TCM1000001
  • take no further action.

Note: Once the overpayment has been remitted then the claim will show as balanced. The item will automatically be removed from the ‘Suspended Overpayments’ work list.

Step 5

For Time to Pay cases consider any outstanding overpayment

If no overpayment is outstanding

  • delete the work item from the ‘Suspended Overpayments’ worklist
  • take no further action.

If an overpayment is outstanding, go to Step 6.

Step 6

If the overpayment is over £200, refer the case to Local Recovery. For how to do this, use TCM1000529.

Note: This will create an IDMS record and Local Recovery will keep checking the case to ensure that the customer is keeping to the original payment arrangements.

Note: If the message ‘There are other suspension reasons for this overpayment, do you wish to continue Yes/No’ displays, select ‘Yes’.

If the overpayment outstanding is below £200, a further message displays,

  • select ‘Menu’.
  • delete the worklist item from the ‘Suspended Overpayments’ worklist
  • take no further action.

Step 7

For Unchecked Manual Remission cases check for the ‘Remission Class’. For how to do this, use TCM1000196.

If the class is 1, go to Step 12.

Note: For class 16 cases refer the cases to TALLO or TAL to refer to the coding out section.

If the class is 10, go to Step 8.

If the class is any other number, go to Step 11.

Step 8

Check the household notes to consider all previous messages. For how to do this, use TCM1000067.

If the message refers to ‘Debt Relief Orders (DRO)’

  • consider the retained note to see that it matches the overpayment posting date
  • go to Step 10.

If the message does not refer to ‘DRO’

  • consider the household note for any continuing action by DMB or other teams
  • go to Step 9.

Step 9

If DMB are still taking action on the case

  • update the household notes
  • select the ‘Debt Recovery’ category. For how to do this, use TCM1000001.
  • enter a bf date 90 days from todays date
  • take no further action.

If another team have actioned the case

  • consider the household note that matches the remission date to find out the operator who dealt with the case
  • contact the team who dealt with the case to ask them to complete their action
  • update the household note outlining your action taken
  • enter a bf date of 30 days
  • take no further action.

Note: If the remitted amount is changed to show a new overpayment, the work list item will be deleted from the ‘Suspended Overpayments’ work list and if any overpayment is still outstanding the recovery cycle will recommence.

If there is no continuing action on the case, go to Step 11.

Step 10

If the amount remitted in the note matches the overpayment posting date, go to Step 11.

If the amount remitted in the note does not match the overpayment posting date

  • pass to TALLO or TAL for IVA referral
  • update the household note outlining your action taken
  • enter a bf date of 30 days
  • take no further action.

Note: CR messages relate to campaigns and are auto remissions, consider the household notes.

Step 11

Check information held

  • confirm ‘Manual Remission’. For how to do this, use TCM1000085

Note: This will set a signal to show that the overpayment is confirmed. If this is the only suspension reason, the ‘Suspended Overpayments’ work list item will be deleted. The overpayment recovery cycle will continue.

  • take no further action.

Step 12

For RLS cases within the Unchecked Manual Remission consider the set ‘RLS signals’. For how to do this, use TCM1000105.

If the ‘RLS’ signal is still set, go to Step 14.

If the ‘RLS’ signal is not set, go to Step 13.

Note: With the address located any overpayment that has previously been remitted as ‘Class 1 – Gone Unknown’ can now be recovered.

Step 13

Check household notes for a message showing evidence of a new address. For how to do this, use TCM1000067.

If a new address has not been found, go to Step 14.

If a new address has been found, go to Step 16.

Step 14

Check the ‘Access to DWP Data System’ (ADD) for a new address. For how to do this, use TCM0132060.

If you do not find a new address, remit the overpayment by

  • cancelling the original ‘Class 1 remission’. For how to do this, use the guidance TCM0230060
  • noting the new outstanding overpayment. For how to do this, use TCM1000386
  • remitting the new overpayment amount you have noted using ‘Remission class 1 – Gone Unknown’. For how to do this, use TCM0230060

Note: First, cancel the original ‘Class 1 remission’. This will update the record to show a new increased overpayment. When you’ve remitted this new overpayment as ‘Class 1’, the case status will change to ‘balanced’ and the reason will be removed from the ‘Suspended Overpayments’ work list.

  • note the remission on the Remissions Database and add a BF date three days from today’s date. For how to do this, use TCM1000008

Note: It can take up to three days from applying the new remission for the work list entry to be removed.

If you find a new address, go to Step 16.

Step 15

On expiry of the BF

  • update household notes with the message OW08 from TCM0166040
  • select the ‘Debt Recovery’ category. For how to do this, use TCM1000001
  • take no further action.

Step 16

If you need to cancel the ‘class 1 remission’. For how to do this, use the guidance TCM0230060, go to Step 17.

Note: Once the remission has been cancelled, the case status will show as open, the item will be removed from the ‘Suspended Overpayments’ work list and recovery of the overpayment will continue.

Step 17

If necessary, update the claim with the new address details. For how to do this, use TCM1000429

  • update household notes with the message OW11 from TCM0166040
  • select the ‘Debt Recovery’ category. For how to do this, use TCM1000001
  • take no further action.

Step 18

Check which tax year the overpayment occurred. For how to do this, use TCM1000216.

If the overpayment occurred in tax year 2007-2008 or any subsequent year

  • transfer the work item to the relevant ‘Four-week run-on’ Management Unit (MU)
  • use TCM0322460 for the correct MU number. For how to do this, use TCM1000023
  • set a future action date. For how to do this, use TCM1000008
  • take no further action.

If the overpayment occurred in tax year 2006-2007 or any earlier tax year

  • transfer the work list item to the relevant ‘Pre-April 07 Changes’ Management Unit (MU)
  • use TCM0322460 for the correct MU number. For how to do this, use TCM1000023
  • set a future action date. For how to do this, use TCM1000008
  • take no further action.