TCM0305300 - Specialist areas: international: European Union Member States: EU Member States - recovery of family benefit on behalf of EUMS

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 or Data Security Team for advice.

Checklist

Before you follow this guidance make sure that;

  • the SED refers to Article 72
  • you take a photocopy of the EU Member State decision letter
  • when dealing with an ongoing recovery under Article 72 you take normal action
  • when dealing with a fully recovered overpayment under Article 72 and the claim is in the renewal period, you end the current claim from 05/04 and capture a BAU claim from 06/04

Required Information

Note: From 31 October 2019 documentary evidence of family composition and details of benefits paid in EU Member State must be sent in by the customer to determine which country is competent to pay.
Where the customer provides all of this information a full decision can be made without waiting for a response to the SED.

Background

The recovery of overpayments of family benefits incurred in one EU Member State can be recovered from family benefits in another member state, provided that the national law of each EU Member State allows. This is provided by;

  • Article 111 (2) of European Community (EEC) Regulations 574/72 and
  • Article 72 (1) of European Community (EC) Regulation 987/09

This means that where an overpayment of family benefit is incurred in a EU Member State it can be recovered from UK family benefits. If the request is not under the correct Article or is unclear, refer the case to TAL for advice.

Note: Article 72/3 deals with social assistance so cannot be applied to family benefits.

When dealing with a recovery request dated between 1 May 2010 and 29 February 2016, use the daily exchange rate published on the date the EU Member State sent their initial request for recovery.

When dealing with a recovery request dated on or after 1 March 2016, use the working day immediately before the day the EU Member State sent their final request for recovery.

For example, if a SED is received from the EU Member State requesting recovery and was completed on 7 December 2014, then the daily exchange rate to use in order calculate the Sterling value, is the one applicable to the relevant EU Member State on 7 December 2014.

Note: Following legislative changes claims or changes received on or after 31 October 2019 require UK versions of SEDs to be issued.

Guidance

Step 1

Check whether the requested recovery of overpayment is for family benefit.

If the requested recovery of overpayment is for family benefit, go toStep 2.

 If the requested recovery of overpayment is not for family benefit

  • issue UKFO27 to EU Member State advising  ‘We are unable to recover the overpayment as the overpayment is not for family benefit’
  • send the case papers to Iron Mountain
  • take no further action.

Step 2

Recovery will not be carried out where the debt is more than five years old.  The five-year period is calculated from the date when the debt is established.

Check whether the overpayment is more than five years old.

If the overpayment is more than five years old

  • issue UKFO27 to the EU Member State noted ‘Recovery of Family Benefit will not be pursued as the debt is more than five years old’
  • take any required action on the case
  • send the case papers to Iron Mountain.

If the overpayment is not more than five years old, go to Step 3.

Step 3

Check whether Child Tax Credits (CTC) is in payment.

If CTC is in payment, go to Step 4.

If CTC is not in payment, check Child Benefit Services to see whether ChB is in payment

If ChB is in payment, refer the case to the relevant Child Benefit area.

If ChB is not in payment

  • issue UKFO27 to the Member State advising ‘We are unable to pursue the recovery of the family benefit overpayment as the customer who incurred the overpayment does not receive Child Benefit or Child Tax Credit’
  • send the case papers to Iron Mountain.

Step 4

Check whether the EU Member State have supplied a copy of their decision letter.

If the EU Member State have supplied their decision letter detailing the overpayment, go to Step 5.

If the EU Member State have not supplied their decision letter detailing the overpayment

  • issue a UKFO26 to the EU Member State to request a copy of the decision letter
  • BF the case for 3 months
  • on expiry of BF, go to Step 7.

Step 5

Check whether the case is complex.

If the case is complex, go to Step 6.

If the case is not complex, end the existing claim and capture a complex claim, go to Step 6.

Step 6

Manually calculate the Current Year (CY) award

  • treat the overpayment as ‘overpayment carried forward from PY’
  • add household note II97 – ‘Article 72 case – ongoing recovery of OMS overpayment’ from TCM0160040. For how to do this, use TCM1000001
  • issue FO27 to the EU Member State to advise of recovery
  • issue TC2054 and a copy of the EU Member State overpayment decision letter to customer
  • complete PORF and pass to FLM, for how to this use CBM051400
  • take no further action.

Step 7

If a copy of the EU Member State decision letter is received, go to Step 6.

If a copy of the EU Member State decision letter is not received, take no further action.