Welfare Reform Bill

My Lords, I agree that it is right and proper that a decision-maker gives full consideration to all the relevant facts provided by a claimant when deciding whether to impose a sanction or penalty. It is also important that claimants have appeal rights when sanctions and penalties are imposed. I believe that the amendments are unnecessary because we have adequate protections in place, but I am very happy to meet the noble Lord on this matter. Let us go through it, because it is important that we get it right. The essential difference between us—although, as the noble Lord, Lord McKenzie pointed out, we need to tease out three different things here—is that the noble Lord, Lord Ramsbotham, is looking for a specific process, whereas we are aiming, in the legal framework as it stands, at a general process of cover. The noble Lord will be aware that, if you have a whole load of specific things, you have a problem when you get the special case that is not covered, whereas if you have a general protection you are covered. I think there is a fruitful discussion to be had around that, and I would welcome a discussion to see that we have the right protections because, again, I do not think there is a huge difference between us here. We want to have the right protections for a vulnerable group. We do not want arbitrary behaviour; we want common sense. It is just a question of looking through. I will circulate the note on this matter to the noble Lord, Lord McKenzie, as well. We are training decision-makers on a number of areas: retaining impartiality; identifying what constitutes evidence and where the burden of proof lies; on the concept of the balance of probabilities; and on an understanding of social security law. It is vital that we do this. The starting point for overpayment recovery will be that almost all overpayments of working-age benefits within the scope of Clause 102 will be recoverable. This follows the basic premise that a benefit recipient should not be allowed to keep money which they should not have received. Future overpayment recovery will provide greater returns and better value for money for the taxpayer than at present. The code of practice that will support the application of the recovery provisions will ensure that decisions about when recovery action is taken will be consistent and considered. The department already has well established considerations in place about the maximum rate of recovery. If a claimant cannot afford the suggested repayment rate, DWP will discuss an alternative repayment rate, or exceptionally, where it is warranted, not pursue recovery. That will also cover a civil penalty. Noble Lords sought an assurance around the appeals process for sanctions. There is a well established appeals process in relation to the imposition of sanctions which will be taken forward into the new regime. A civil penalty may be appealed against. Indeed, as it will be notified to the claimant at the same time as the overpayment decision, this will make it easier for the claimant to appeal against either or both.