A TAXI driver who was overpaid almost £24,000 by the DSS has won the latest round in his seven-year battle to avoid being forced to repay the cash.

Jeffrey Oram claimed Income Support benefit in February 1992 following an accident at work, after which his injuries forced him to give up work.

The 40-year-old suffered the accident shortly after his wife, Amanda, gave birth to a baby boy.

In April 1992, his wife returned to work, but Mr Oram continued to receive weekly benefit payments, despite DSS rules dictating that "a person whose spouse is engaged in remunerative work has no entitlement to income support".

Mr Oram, of Parkland Close, Peterlee, in County Durham, had no idea that the rule existed and continued to claim benefit for the next three years until, in January 1995, the DSS finally discovered that he had been overpaid by £23,486 and launched a protracted bid to recover the money.

In October 1998 the Durham Social Security Appeal Tribunal ruled that Mr Oram had a "continuing obligation" to make further inquiries about the benefit rules and notify the Benefits Agency of his change of circumstances.

That ruling was upheld in October 1999 during Mr Oram's appeal to the Social Security commissioner.

But Judge Alan Wilkie QC, sitting at London's High Court yesterday, intervened on Mr Oram's behalf, overturning the commissioner's decision.

Ruling that the case "plainly gives rise to arguable points of law", the judge said the tribunal and the commissioner had failed to take account of the fact that Mrs Oram had informed the DSS of her return to work in 1992.

"They did not apply their minds to the question whether it was reasonable for Mr Oram to believe that it was unnecessary for him to take any action himself."

Upholding Mr Oram's challenge, he concluded: "It therefore follows that the commissioner in this case erred in law."

The judge referred the case back to the commissioner for urgent reconsideration.