CCM10060 - Penalties and Interest: Incorrect Claims – Meaning of Neglect

A penalty is only applicable where a person fraudulently or negligently makes an incorrect statement or declaration. Neglect is not defined in the legislation and covers a whole range of offences from those that only just fall short of fraud to simply carelessness.

Neglect does not need intent so the fact that the person did not intend to over-claim credits does not, in itself, prevent a penalty.

Neglect has been defined as ‘…the omission to do something which a prudent and reasonable man would do.’ We can assume a reasonable person would amongst other things:

• Make a complete and correct claim.
• Read the notes supplied with the claim so far as they relate to their own circumstances.
• Seek help if they are unable to cope with the claim or declaration themselves.

You will need to establish culpability by explaining to the claimant that you consider they have been negligent and the facts you believe show this. You should try to find out the claimant’s own reasons for the error and show that you are prepared to listen and consider carefully what you are told. Consider any explanations they may put forward, was it reasonable for them to act as they did?

A useful test is to ask yourself whether the claimant took reasonable steps to make a correct claim and could reasonably have expected to receive the correct award. For example if they were not working 16 hours per week could they have reasonably thought their work amounted to 16 hours? Plain carelessness can be negligence. If the claimant took reasonable steps to make a correct claim, even if it later turned out to be incorrect, there would be no neglect. For instance there is no neglect where the claimant followed advice from an Enquiry Centre, Call Centre, Job Centre Plus or an adviser such as the Citizen’s Advice Bureau but the advice was in fact incorrect. See CCM10620 and CCM10640.

Some examples of what is and is not neglect can be found at CCM10065.

Where the claimant made a correct claim but we captured the information incorrectly there is no penalty even if they failed to check their award notice. We can only charge a penalty where the claimant makes an incorrect statement or declaration.