[2024] UKUT 39 (AAC)
Upper Tribunal Administrative Appeals Chamber

[2024] UKUT 39 (AAC)

Fecha: 02-Nov-2021

(a)in writing; or Conclusions

(a)in writing; or

(b)by telephone—

(i)where the relevant authority has published a telephone number for that purpose or for the purposes of regulation 83 (time and manner in which claims are to be made) unless the authority determines that in any particular case or class of case notification may not be given by telephone; or

(ii)in any case or class of case where the relevant authority determines that notice may be given by telephone; or

(c)by any other means which the relevant authority agrees to accept in any particular case.

15.

This regulation imposes a general duty on the claimant to report any change of circumstances to the authority which might affect their right to, the amount of, or the payment of, benefit.

ERROR OF LAW

16.The question for the Upper Tribunal is whether the FTT made a material error of law based on any of the reasons advanced by the appellant. In my judgment the FTT was in error of law in this case.

17.

I agree with the ground advanced in the Appellant’s written application for permission to appeal and referred to in oral argument, namely, that as the Respondent's earnings had changed a number of times during the period of the overpayment, the FTT was required to make a clear findings of fact in respect of each change of circumstances. It was required to make findings to enable it to determine whether the overpayments caused by the Respondent first finding work and then receiving increases in income were the results of official error.

18.

The FTT by considering the issue of notification as a single, one-off event (specifically referred to in paragraph 8 of the written reasons) failed to make sufficient findings of fact and, axiomatically, to provide sufficient reasons for its decision in this regard. I agree with Judge Brunner’s decisionin CalderdaleCouncil (HB)[2016] UKUT 396 (AAC) (CH/1633/2016)that overpayments should be considered separately as a series of payments, given that a claimant’s actual or imputed knowledge of overpayments will change over time (following Commissioner Jacobs, as he then was, in CH/858/2006).

19.

Having decided the decision of the FTT is in error of law and further findings of fact are required I am not required to consider other issues raised by this appeal ,however, it may be helpful to consider some of those issues.

Extended payments; Is Universal Credit a Qualifying Benefit?

20.

The Housing Benefit Regulations 2006 SI No 213 provide for extended payments if certain criteria are fulfilled, including receipt of a “qualifying income-related benefit”: regulation 72(1)(a).The definition of “qualifying income-related benefit” is contained in regulation 2(1) of the 2006 Regulations;

qualifying income-related benefit” means—

(a)

income support;

(b)

income-based jobseeker’s allowance;

(c)

income-related employment and support allowance;

21.

This issue is relevant to whether the Respondent was or could have been in receipt of extended payments and therefore to the amount of any overpayment. The Respondent stated she was advised by DWP she would be entitled to extended payments of HB for a further 4 weeks.

22.

Counsel for the Appellant local authority argued that the Respondent’s award of UC was terminated with effect from January 24th, 2020. The Respondent was therefore overpaid HB from January 27th, 2020, the date on which the first payment of HB was made through a credit to her rent account. He submitted universal credit is not a qualifying income-based benefit for the purposes of Regulation 2 of the Housing Benefit Regulations 2006.

23.

Counsel for the Appellant argues the definition of “qualifying income-related benefit” in regulation 2(1) of the 2006 Regulations refers to three legacy benefits: income support, income-based jobseeker’s allowance and income-related employment and support allowance. UC is not listed in the definition and is not therefore a “qualifying income-related benefit”. He argues there is no way to read regulation 2(1) as if UC was listed in the definition. He submits therefore the amount of the overpayment of HB falls to be calculated on the basis that CA had no entitlement to extended payments of HB.

24.

The Respondent’s representative in her further submission does not dispute the end date of the universal credit claim as 24th January 2020. She disagrees however with the submission that UC is not a qualifying benefit. She submits that if the local authority’s interpretation of Regulation 2 is correct then Regulation 72(1)(c) will soon be otiose due to the decreasing numbers of people in receipt of legacy benefits and this interpretation is contrary to public policy. She also argues that as universal credit largely replaces the benefits referred to the provision should be read to include it.

25.

While the Respondent's argument may have some force in logic, in considering the interpretation of this statutory instrument, I am mindful of the primacy of the text taking into account the regulation as a whole and that words should be given their ordinary natural meaning in this context ( R on the application of O (a minor, by her litigation friend AO)) V SSHD [2022] UKSC 3. On that basis I do not consider there is any way to read this provision as including universal credit as a qualifying benefit without effectively redrafting the regulation or at the very least straining the statutory language far beyond its ordinary natural meaning. As such in my judgement, universal credit is not included regulation 2 and the Respondent would not have been eligible for extended payments on this basis. This view is not however, material to my decision in this case.

Directions for the re-determination of the Appellant’s appeal

I direct as follows:

1.

The appeal against the Secretary of State’s decision of 27th April, as reconsidered on the 25th of June 2020, is remitted to a differently constituted First-tier Tribunal for re-determination. The next tribunal should make fresh findings of fact and cannot, in its reasoning, take into account the findings of fact or conclusions of the tribunal whose decision I have set aside. The undetermined grounds of appeal are just that – undetermined.

2.

The composition of the Tribunal panel that re-determines the appeal must not include any member of the panel whose decision I have set aside.

3.

The Tribunal may find it helpful to make careful findings of fact in relation to issues which may be raised at hearing including the duty to notify of changes of circumstances (as referred to at paragraph 14 above) the information provided to the Respondent regarding this duty, whether there was an official error and if so the period(s) it relates to and whether there was any contribution to this error by the claimant. The FTT should also carefully consider and make findings of fact in regard to whether no relevant person could reasonably have been expected to realise that there was an overpayment either at the time it was made or when they were notified of the payment.

4.

The First-tier Tribunal is to hold an oral hearing of the remitted appeal unless the Respondent makes a written request to the First-tier Tribunal for the matter to be decided on the papers without a hearing. Such a request and any representations are to be received by that Tribunal within one month of the date on which this decision is issued. Thereafter, the Tribunal would have to decide whether to proceed without a hearing or if there is to be a hearing, the form of any hearing (whether in-person or remotely by video or telephone), after considering the parties’ representations or preferences and in accordance with the FTT procedural rules

5.

If the Appellant wishes to rely on any further written evidence or argument, it is to be supplied to the First-tier Tribunal so that it is received by that Tribunal within one month of the date on which this decision is issued.

Apart from directions 1 and 2, these directions are subject to any case management directions given by the First-tier Tribunal.

The parties are reminded that the law prevents the First-tier Tribunal from taking into account circumstances not applying at the date of decision (section 12(8) of the Social Security Act 1998). This does not prevent the tribunal from taking into account evidence that came into existence after that date if relevant to the circumstances at the date of the decision under appeal.

(Signed on the Original)

E Fitzpatrick

Judge of the Upper Tribunal

Date 17th January 2024