Mistakes by NHS bursary scheme led to overpayment of bursary

What happened

Miss H is an NHS trainee. She initially applied for a student bursary in winter 2011. In spring 2012 Miss H called NHS BSA's helpline and was advised about applying for childcare costs. The records of the call are brief and merely stated that she would be sending in a childcare allowance form, that she asked to go through an assessment, and she said that her partner would call about his income. Her bursary was recalculated a number of times over the following year based on information she gave, and her final award for year one was just over £10,300.

Miss H's year two bursary was awarded in summer 2013 at nearly £4,700. She questioned this and was told that it was the correct amount, and that there had been an error in the previous year's bursary because the NHS BSA had not factored in her partner's income. Following this, Miss H received reminders that she had been overpaid in year one and would have to pay the money back in full, although a repayment schedule could be agreed.

Miss H complained. She was told that the record of her call to the helpline in early spring 2012 did not show she had been given information. The NHS BSA said that staff should have explained to her that she was not entitled to childcare costs for one child because this was based on the information it had about her partner's income and this exceeded the limit to trigger these allowances.

However, Miss H had submitted an application for childcare costs that was processed in late spring 2012. When her childcare costs were entered into the NHS BSA's computer system, the information about her partner's income was erased, so the subsequent calculation of her allowances was incorrect. In a subsequent response, the NHS BSA said she had signed a student declaration which stated that where financial support had been given that the person was not entitled to, the money would have to be repaid. The NHS BSA said it would agree a realistic payment plan, however, the decision stood.

Miss H raised a further complaint, that the NHS BSA had mistakenly sent an update letter to her neighbour. The NHS BSA apologised for this and said that it was a typing error.

What we found

The NHS BSA's explanations about how it calculated Miss B's bursary and overpayment failed to meet the Ombudsman's Principles of being open and accountable. The NHS BSA did not give her further clarification when she asked for this. There were inadequate records of her call to the helpline in early spring 2012, but, based on subsequent actions, it is likely Miss B was not properly advised about her bursary. There was a significant error in the computer system that led to an overpayment, and the NHS BSA breached the Data Protection Act by disclosing personal information to Miss B's neighbour.

Putting it right

The NHS BSA paid £1,000 compensation to Miss H for the stress of having to repay the loan, for the inconvenience it caused by mishandling her application, and for its poor communication with her. It also paid her £250 to acknowledge her loss of confidence in the NHS BSA's administration of her bursary, and £250 for the breach of her confidentiality.

It updated its award notifications and accompanying information so customers can see how it makes its calculations. It also took steps to make sure its helpline gives customers accurate information and makes clear records of the conversations.