My immediate response is that far from being 'quite right' the response of the call-handler (and let's remember that's ALL these people are) was highly inappropriate... Clearly you are living in vey difficult circumstances. As she was so keen to cite negligence perhaps we could consider hers in placing your mental health and general well being at risk with such a stupid comment... They would have to PROVE intent to defraud - which would be difficult and expensive and ultimately counter-productive. Can you imagine the headlines? - Slip of the mind in dire circumstances sends widower dad of disabled kid to jail? You've reported the error... And are you SURE you weren't averaging over the 16 hours required of people with kids? If you reported your earnings correctly there would surely be little or no financial penalty? Just the 30-hour element...