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Hi, welcome to JustAnswer. My name is Jo C, I’m a barrister with 12 years of experience and I am happy to help with your question today.
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Thanks for the information
It isn’t illegal per se.
It might well be that you would succeed upon an appeal but that doesn’t make the policy or decision illegal.
They are entitled to assess claims for public money.
Hope this helps. Please let me know if you need more information.