Welfare Overpayments and Fraud (21:VII) - Revision history

LSLAP at 08:06, 14 October 2025

2025-10-14T08:06:47Z

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	If a person is not entitled to any form of welfare benefit or supplement they receive, those benefits are an overpayment. Overpayments can range from a few dollars to tens of thousands of dollars. '''Many overpayments arise not out of fraud by the welfare recipient but rather out of an honest error on the part of either the recipient or the Ministry.'''		If a person is not entitled to any form of welfare benefit or supplement they receive, those benefits are an overpayment. Overpayments can range from a few dollars to tens of thousands of dollars. '''Many overpayments arise not out of fraud by the welfare recipient but rather out of an honest error on the part of either the recipient or the Ministry.'''

	When a person has received an overpayment from the Ministry for any form of benefit under the welfare legislation, the overpayment is a debt owed to the Crown. According to [https://www2.gov.bc.ca/gov/content/governments/policies-for-government/bcea-policy-and-procedure-manual/bc-laws/bc-employment-and-assistance-act-263-2002#section27 ''EAA'', ss 27-28] and [https://www2.gov.bc.ca/gov/content/governments/policies-for-government/bcea-policy-and-procedure-manual/bc-laws/employment-and-assistance-for-persons-with-disabilities-act#section18 EAPWDA, ss 18-19], the government may recover the debt by deducting funds from subsequent payments of income assistance or pursuing a court action.		When a person has received an overpayment from the Ministry for any form of benefit under the welfare legislation, the overpayment is a debt owed to the Crown. According to [https://www2.gov.bc.ca/gov/content/governments/policies-for-government/bcea-policy-and-procedure-manual/bc-laws/bc-employment-and-assistance-act-263-2002#section27 ''EAA'', ss 27-28] and [https://www2.gov.bc.ca/gov/content/governments/policies-for-government/bcea-policy-and-procedure-manual/bc-laws/employment-and-assistance-for-persons-with-disabilities-act#section18 ''EAPWDA'', ss 18-19], the government may recover the debt by deducting funds from subsequent payments of income assistance or pursuing a court action.

	Where a person has received an overpayment of benefits due to Ministry error, Ministry policy recognizes that the person may have an estoppel defence to the overpayment under section 89 of the ''Financial Administration Act'' RSBC 1996, c-138. Estoppel can arise where the person received benefits they were not entitled to due to error by the Ministry, and the person can show detrimental reliance on the Ministry’s decision. The Ministry policy on estoppel defences is in the Ministry’s Policy and Procedures manual under the section called “Reasons not to Recover an Overpayment”, https://www2.gov.bc.ca/gov/content/governments/policies-for-government/bcea-policy-and-procedure-manual/compliance-and-debt-management/recoveries.		Where a person has received an overpayment of benefits due to Ministry error, Ministry policy recognizes that the person may have an estoppel defence to the overpayment under section 89 of the ''Financial Administration Act'' RSBC 1996, c-138. Estoppel can arise where the person received benefits they were not entitled to due to error by the Ministry, and the person can show detrimental reliance on the Ministry’s decision. The Ministry policy on estoppel defences is in the Ministry’s Policy and Procedures manual under the section called “Reasons not to Recover an Overpayment”, https://www2.gov.bc.ca/gov/content/governments/policies-for-government/bcea-policy-and-procedure-manual/compliance-and-debt-management/recoveries.

LSLAP at 08:06, 14 October 2025

2025-10-14T08:06:31Z

LSLAP at 19:44, 13 October 2025

2025-10-13T19:44:05Z

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Nate Russell: review confirmed 2025

2025-08-28T19:23:12Z

review confirmed 2025

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LSLAP: /* B. Repayment Agreements and Notifications of Other Overpayments */

2025-08-08T23:43:11Z

B. Repayment Agreements and Notifications of Other Overpayments

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	The Ministry may ask people suspected of having received some welfare overpayments to sign a repayment agreement acknowledging the alleged debt. Before signing a repayment agreement, clients should ask to review the Ministry’s evidence and its reasons for the determination that there is an overpayment and, if possible, get legal advice or help from an advocate. The Ministry can often make errors in its overpayment determinations. See the Ministry’s policy on recoveries and overpayments at http://www2.gov.bc.ca/gov/content/governments/policies-for-government/bcea-policy-and-procedure-manual/compliance-and-debt-management/recoveries		The Ministry may ask people suspected of having received some welfare overpayments to sign a repayment agreement acknowledging the alleged debt. Before signing a repayment agreement, clients should ask to review the Ministry’s evidence and its reasons for the determination that there is an overpayment and, if possible, get legal advice or help from an advocate. The Ministry can often make errors in its overpayment determinations. See the Ministry’s policy on recoveries and overpayments at http://www2.gov.bc.ca/gov/content/governments/policies-for-government/bcea-policy-and-procedure-manual/compliance-and-debt-management/recoveries

	'''''In many situations, it is advisable to ~~not~~ sign an acknowledgment. However, if the client does choose to sign an acknowledgment and repay the overpayment, the monthly repayment rate for overpayments is $10. The Ministry is not presently charging interest on repayments.'''''		'''''In many situations, it is advisable not to sign an acknowledgment. However, if the client does choose to sign an acknowledgment and repay the overpayment, the monthly repayment rate for overpayments is $10. The Ministry is not presently charging interest on repayments.'''''

	== C. Categories of Debt Repayment ==		== C. Categories of Debt Repayment ==

LSLAP: /* A. What is a Welfare Overpayment? */

2025-08-08T23:41:45Z

A. What is a Welfare Overpayment?

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	When a person has received an overpayment from the Ministry for any form of benefit under the welfare legislation, the overpayment is a debt owed to the Crown. According to [https://www2.gov.bc.ca/gov/content/governments/policies-for-government/bcea-policy-and-procedure-manual/bc-laws/bc-employment-and-assistance-act-263-2002#section27 EAA, ss 27-28] and [https://www2.gov.bc.ca/gov/content/governments/policies-for-government/bcea-policy-and-procedure-manual/bc-laws/employment-and-assistance-for-persons-with-disabilities-act#section18 EAPWDA, ss 18-19], the government may recover the debt by deducting funds from subsequent payments of income assistance or pursuing a court action.		When a person has received an overpayment from the Ministry for any form of benefit under the welfare legislation, the overpayment is a debt owed to the Crown. According to [https://www2.gov.bc.ca/gov/content/governments/policies-for-government/bcea-policy-and-procedure-manual/bc-laws/bc-employment-and-assistance-act-263-2002#section27 EAA, ss 27-28] and [https://www2.gov.bc.ca/gov/content/governments/policies-for-government/bcea-policy-and-procedure-manual/bc-laws/employment-and-assistance-for-persons-with-disabilities-act#section18 EAPWDA, ss 18-19], the government may recover the debt by deducting funds from subsequent payments of income assistance or pursuing a court action.

	Where a person has received an overpayment of benefits due to Ministry error, Ministry policy ~~has since February 1, 2019 recognized~~ that the person may have an estoppel defence to the overpayment under section 89 of the Financial Administration Act RSBC 1996, c-138. Estoppel can arise where the person received benefits they were not entitled to due to error by the Ministry, and the person can show detrimental reliance on the Ministry’s decision. The Ministry policy on estoppel defences is in the Ministry’s Policy and Procedures manual under the section called “Reasons not to Recover an Overpayment”, https://www2.gov.bc.ca/gov/content/governments/policies-for-government/bcea-policy-and-procedure-manual/compliance-and-debt-management/recoveries.		Where a person has received an overpayment of benefits due to Ministry error, Ministry policy recognizes that the person may have an estoppel defence to the overpayment under section 89 of the Financial Administration Act RSBC 1996, c-138. Estoppel can arise where the person received benefits they were not entitled to due to error by the Ministry, and the person can show detrimental reliance on the Ministry’s decision. The Ministry policy on estoppel defences is in the Ministry’s Policy and Procedures manual under the section called “Reasons not to Recover an Overpayment”, https://www2.gov.bc.ca/gov/content/governments/policies-for-government/bcea-policy-and-procedure-manual/compliance-and-debt-management/recoveries.

	:'''NOTE:''' If a client faces a civil lawsuit for a welfare overpayment resulting from failure to provide complete or accurate information, refer them to a lawyer at the Community Legal Assistance Society.		:'''NOTE:''' If a client faces a civil lawsuit for a welfare overpayment resulting from failure to provide complete or accurate information, refer them to a lawyer at the Community Legal Assistance Society.

LSLAP at 07:18, 27 August 2024

2024-08-27T07:18:47Z

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LSLAP at 06:48, 27 August 2024

2024-08-27T06:48:57Z

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	When a person has received an overpayment from the Ministry for any form of benefit under the welfare legislation, the overpayment is a debt owed to the Crown. According to [https://www2.gov.bc.ca/gov/content/governments/policies-for-government/bcea-policy-and-procedure-manual/bc-laws/bc-employment-and-assistance-act-263-2002#section27 EAA, ss 27-28] and [https://www2.gov.bc.ca/gov/content/governments/policies-for-government/bcea-policy-and-procedure-manual/bc-laws/employment-and-assistance-for-persons-with-disabilities-act#section18 EAPWDA, ss 18-19], the government may recover the debt by deducting funds from subsequent payments of income assistance or pursuing a court action.		When a person has received an overpayment from the Ministry for any form of benefit under the welfare legislation, the overpayment is a debt owed to the Crown. According to [https://www2.gov.bc.ca/gov/content/governments/policies-for-government/bcea-policy-and-procedure-manual/bc-laws/bc-employment-and-assistance-act-263-2002#section27 EAA, ss 27-28] and [https://www2.gov.bc.ca/gov/content/governments/policies-for-government/bcea-policy-and-procedure-manual/bc-laws/employment-and-assistance-for-persons-with-disabilities-act#section18 EAPWDA, ss 18-19], the government may recover the debt by deducting funds from subsequent payments of income assistance or pursuing a court action.

	Where a person has received an overpayment of benefits due to Ministry error, Ministry policy has since February 1, 2019 recognized that the person may have an estoppel defence to the overpayment under section 89 of the Financial Administration Act RSBC 1996, c-138. Estoppel can arise where the person received benefits they were not entitled due to error by the Ministry, and the person can show detrimental reliance on the Ministry’s decision. The Ministry policy on estoppel defences is in the Ministry’s Policy and Procedures manual under the section called “Reasons not to Recover an Overpayment”, https://www2.gov.bc.ca/gov/content/governments/policies-for-government/bcea-policy-and-procedure-manual/compliance-and-debt-management/recoveries.		Where a person has received an overpayment of benefits due to Ministry error, Ministry policy has since February 1, 2019 recognized that the person may have an estoppel defence to the overpayment under section 89 of the Financial Administration Act RSBC 1996, c-138. Estoppel can arise where the person received benefits they were not entitled to due to error by the Ministry, and the person can show detrimental reliance on the Ministry’s decision. The Ministry policy on estoppel defences is in the Ministry’s Policy and Procedures manual under the section called “Reasons not to Recover an Overpayment”, https://www2.gov.bc.ca/gov/content/governments/policies-for-government/bcea-policy-and-procedure-manual/compliance-and-debt-management/recoveries.

	:'''NOTE:''' If a client faces a civil lawsuit for a welfare overpayment resulting from failure to provide complete or accurate information, refer them to a lawyer at the Community Legal Assistance Society.		:'''NOTE:''' If a client faces a civil lawsuit for a welfare overpayment resulting from failure to provide complete or accurate information, refer them to a lawyer at the Community Legal Assistance Society.
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	Effective January 1, 2020, the Ministry has formulated three different monthly rates of debt repayment. $10 monthly payments will be made for overpayments, $20 monthly payments will be made for deposit debts including repayable security deposits, pet damage deposits and utility security deposits, and $100 monthly payments will be made for offence overpayments. Only one type of monthly payment can be collected at a time and the Ministry cannot heighten the repayment amount unless they obtain your consent ([https://www.bclaws.gov.bc.ca/civix/document/id/complete/statreg/263_2002#section89 EAR, ss 89-89.2] and [https://www.bclaws.gov.bc.ca/civix/document/id/complete/statreg/265_2002#section74 EAPDR ss 74-74.2]).		Effective January 1, 2020, the Ministry has formulated three different monthly rates of debt repayment. $10 monthly payments will be made for overpayments, $20 monthly payments will be made for deposit debts including repayable security deposits, pet damage deposits and utility security deposits, and $100 monthly payments will be made for offence overpayments. Only one type of monthly payment can be collected at a time and the Ministry cannot heighten the repayment amount unless they obtain your consent ([https://www.bclaws.gov.bc.ca/civix/document/id/complete/statreg/263_2002#section89 EAR, ss 89-89.2] and [https://www.bclaws.gov.bc.ca/civix/document/id/complete/statreg/265_2002#section74 EAPDR ss 74-74.2]).

			Previously, a person on welfare usually could not have more than two repayable security deposits outstanding with the Ministry. The government has since removed the limit on the number of housing security deposits people on assistance can access.

			The government has also introduced a repayable supplement for pet damages. For more information, visit the Ministry policy at: https://www2.gov.bc.ca/gov/content/governments/policies-for-government/bcea-policyand-procedure-manual/general-supplements-and-programs/pet-damage-deposits

	Further, the Ministry now also has the discretion not to deduct debts from ongoing welfare benefits where the family unit is homeless or at risk of being homeless or where a deduction in welfare benefits would put the health of someone in the family unit in danger. In addition, no deductions will be made from someone in a special care facility for extended care, or for alcohol or drug treatment ([https://www.bclaws.gov.bc.ca/civix/document/id/complete/statreg/263_2002#section89.1 EAR, s 89.1] and [https://www.bclaws.gov.bc.ca/civix/document/id/complete/statreg/265_2002#section74.1 EAPDR s 74.1])		Further, the Ministry now also has the discretion not to deduct debts from ongoing welfare benefits where the family unit is homeless or at risk of being homeless or where a deduction in welfare benefits would put the health of someone in the family unit in danger. In addition, no deductions will be made from someone in a special care facility for extended care, or for alcohol or drug treatment ([https://www.bclaws.gov.bc.ca/civix/document/id/complete/statreg/263_2002#section89.1 EAR, s 89.1] and [https://www.bclaws.gov.bc.ca/civix/document/id/complete/statreg/265_2002#section74.1 EAPDR s 74.1])
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	*take civil action to recover the overpayment;		*take civil action to recover the overpayment;
	*enter into a repayment agreement with the recipient;		*enter into a repayment agreement with the recipient;
	*~~Overpayment~~ notification and deduction of established overpayment(s) from future benefits; or		*overpayment notification and deduction of established overpayment(s) from future benefits; or
	*~~Deduction~~ for offence overpayments, where the person is convicted of a charge under the Criminal Code, [https://www2.gov.bc.ca/gov/content/governments/policies-for-government/bcea-policy-and-procedure-manual/bc-laws/bc-employment-and-assistance-act-263-2002 EAA] or [https://www2.gov.bc.ca/gov/content/governments/policies-for-government/bcea-policy-and-procedure-manual/bc-laws/employment-and-assistance-for-persons-with-disabilities-act EAPWDA]		*deduction for offence overpayments, where the person is convicted of a charge under the Criminal Code, [https://www2.gov.bc.ca/gov/content/governments/policies-for-government/bcea-policy-and-procedure-manual/bc-laws/bc-employment-and-assistance-act-263-2002 EAA] or [https://www2.gov.bc.ca/gov/content/governments/policies-for-government/bcea-policy-and-procedure-manual/bc-laws/employment-and-assistance-for-persons-with-disabilities-act EAPWDA]

	'''If a client has criminal welfare fraud charges''' (whether under the Criminal Code or for a statutory offence under the welfare legislation) this creates a potential “loss of livelihood” issue, so '''refer them to Legal Aid BC''' to see if they are eligible for a legal aid criminal lawyer. If the client is not eligible for Legal Aid, LSLAP may be able to assist them.		'''If a client has criminal welfare fraud charges''' (whether under the Criminal Code or for a statutory offence under the welfare legislation) this creates a potential “loss of livelihood” issue, so '''refer them to Legal Aid BC''' to see if they are eligible for a legal aid criminal lawyer. If the client is not eligible for Legal Aid, LSLAP may be able to assist them.

Clicklaw Editor: /* E. Welfare Fraud */

2023-09-12T18:19:36Z

E. Welfare Fraud

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LSLAP at 04:53, 25 August 2023

2023-08-25T04:53:43Z

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