Split liability to repay an overpayment

An overpayment may increase after the point at which the individual provides information due to processing times until a new determination is made. However, Social Security Scotland will not seek to recover that part of the overpayment which came after the required information was provided.

This happens where all of the following apply:

• an individual provides information which Social Security Scotland did not have before
• the information provided would reduce their award or end entitlement altogether
• this amounts to an error and generates an overpayment which the client is liable to repay to Social Security Scotland
• processing times mean a further overpayment accrues after the individual provides the information. This is due to time taken by Social Security Scotland to process the change

This means the overpayment must be broken down into two parts. Whilst the client is liable for the overpayment, they may not be liable to repay some of it. This is known as a ‘split liability’.

The part for which we will seek to recover overpaid assistance:

• accrues from the day that the individual should have notified Social Security Scotland of the change of circumstances
• ends on the day the individual provides the information required to make the new determination

The part for which we will not seek to recover the overpaid assistance:

• starts the day after they provide the information required to make the new determination
• ends on the day the new determination is processed

The case manager records the date when the individual provides the information needed to make the new determination. Social Security Scotland will:

• seek to recover any assistance overpaid as a result of the error before the date the individual provides the information
• not seek to recover any assistance that is overpaid as a result of the error after the date the individual provides the information.