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05 January 2012
Issue: 7495 / Categories: Case law , Law reports , In Court
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Insolvency—Debt relief orders—Recovery of benefits during moratorium period

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Secretary of State for Work and Pensions v Payne and another [2011] UKSC 60, [2011] All ER (D) 94 (Dec)

Supreme Court, Lady Hale, Lord Brown, Lord Mance, Lord Kerr and Lord Wilson SCJJ, 14 Dec 2011

The secretary of state for work and pensions cannot continue to recoup social fund loans and benefit overpayments by deduction from current benefit payments during the moratorium period after the making of a debt relief order (DRO) under Pt 7A of the Insolvency Act 1986 (IA 1986).

Clive Sheldon QC and Denis Edwards (instructed by the Department for Work and Pensions Legal Service) for the secretary of state. Richard Drabble QC and Desmond Rutledge (instructed by Edwards Duthie) for P. Richard Drabble QC and Paul Stagg (instructed by Public Law Project) for C.

The DRO scheme was introduced into IA 1986 by the Tribunals, Courts and Enforcement Act 2007 and came into force in February 2009. When a DRO was made, a moratorium commenced on the effective date for the DRO in relation to each qualifying debt specified in

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