CCM10065 - Penalties and Interest: Incorrect Claims - Examples of Neglect

It is impossible to provide a definitive list of the circumstances in which an incorrect claim will involve neglect. By the time you reach this stage you will have established the claimant’s entitlement and explored why they made an incorrect statement. Each case should be judged on its own merit, having established all of the claimant’s explanations and circumstances. The following examples show some of the situations you might encounter.

Example 1

Profits of £6,820 have been shown on the claim for tax credits when the correct figure should have been £8,620. The claimant admits this was an accidental transposition error and there was no intent to over-claim credits. Before signing and submitting the claim form the claimant should have taken care to ensure all entries were correct. Not spotting an error at least amounts to carelessness and we would argue this amounts to neglect so that a penalty is appropriate.

(This text has been withheld because of exemptions in the Freedom of Information Act 2000)

(This text has been withheld because of exemptions in the Freedom of Information Act 2000)

Example 3

The claimant showed child care costs of £85 per week. An enquiry established this was only paid during the school holidays. The claimant says the notes were confusing and he did not realise he had made an incorrect claim. This amounts to neglect as the claimant has not taken reasonable steps to submit a correct claim. If he found the notes confusing he should have obtained help from the Call Centre or Enquiry Centre. The claimant had not told us the child care costs only applied to school holidays so could not reasonably have expected to receive the correct award.

Example 4

The claimant submitted a claim as a single person. The enquiry established she was still living with her husband. The claimant says she did not include her husband as he worked away from home. This amounts to at least neglect. The claim form asks for details of the partner so by withholding information the claimant could not reasonably have expected to receive the correct award. The notes to the claim form say you are not treated as separated when one of you works away from home.

Example 5

The claimant claimed CTC for his son. An examination was opened because a claim for that child had already been made by the child’s mother although the father was unaware of this claim. Discussions established the child spent equal amounts of time with each parent and they shared responsibility for his education and welfare. A decision was made that the main care lay with the mother. Although the father was not entitled to the CTC it was not unreasonable for him to think he was entitled to the CTC so there is no neglect.

Example 6

The claimant accepted they had made an incorrect claim but said this was because they had little understanding of official forms and had poor literacy skills. Their limited ability does not mean there can be no neglect. The claimant must take reasonable steps to submit an accurate claim and a failure to do so amounts to neglect. If they cannot be sure whether it is right or wrong they have not taken reasonable steps. If they have difficulty with forms they should seek help from the Call Centre or Enquiry Centre.

Example 7

The claimant had submitted an incorrect claim but their representative suggested this was because they suffered from a medical condition which affected their mental ability. This does not automatically mean there can be no neglect. You will need to look carefully but sympathetically at their circumstances. The claimant is still expected to take reasonable steps to submit an accurate claim. Were they aware of their limited ability? Is this a condition that affects them all of the time or is it sporadic? How do they deal with other aspects of their life such as domestic bills, insurance, banking or official forms. Did they seek help from the person representing them at the time of making the claim?