The High Court of Justice of the Valencian Community frees a pensioner from repaying €20,621 that SEPE paid him unduly over four years. The ruling applies the European doctrine of good faith and disproportionality.
A Valencian pensioner has succeeded in having the courts exempt him from repaying €20,621.48 that the State Public Employment Service (SEPE) claimed for an unduly received subsidy for those over 52 years old between 2019 and 2023. The Social Chamber of the High Court of Justice of the Valencian Community (TSJCV) applied the jurisprudence of the European Court of Human Rights to annul the claim, noting that the error was solely that of the public body and that the beneficiary acted in good faith.
The case began when SEPE detected, after the citizen's retirement, that he did not meet the minimum unemployment contribution period required for the subsidy. The Administration then claimed the full repayment of the amounts received, but the affected individual appealed. Although the Social Court number 16 of Valencia initially sided with SEPE, the TSJCV overturned the decision, considering that the pensioner did not conceal data or provide false information, and that the benefit was used for his basic sustenance.
Requirements for the courts to annul a SEPE claim
The ruling is based on the Cakarević doctrine of the European Court of Human Rights, which allows citizens to be exempt from repaying undue amounts when four conditions are met: there is no concealment or bad faith; the error is exclusively attributable to the Administration; the money has been used for basic needs; and the repayment would cause disproportionate harm. In this case, the court considered that the €20,621 represented an excessive economic burden for a pensioner, who had already used those funds to live for four years.
The ruling reminds that SEPE has a four-year period to claim undue payments, but even within that timeframe, judges can halt the demand if the previous circumstances are met. For citizens facing a similar situation, experts recommend keeping all documentation that proves their good faith and the destination of the funds, as well as appealing any administrative claim if the error was not caused by them.
Receiving the subsidy for those over 52 in 2026
To avoid problems, applicants must meet the requirements in force in 2026. The aid amounts to €480 per month (80% of the IPREM, set at €600) and is paid for life until retirement age. It is necessary to be at least 52 years old, be in total or part-time unemployment, be registered as a job seeker, and have contributed at least six years of unemployment throughout their working life. Additionally, personal income must not exceed €915.75 per month (75% of the SMI in 2026).
Beneficiaries must submit an annual income declaration every twelve months, within 15 days of completing the year of payment. If they do not do so, SEPE can suspend payments and contributions. In communities like Andalusia, management is divided between the Andalusian Employment Service (SAE) and SEPE, so it is crucial to keep the job demand updated in the regional body before applying for the subsidy.
What to do if SEPE claims an undue payment from you
In the event of a claim from SEPE, the first step is not to ignore it and to gather all evidence that the error was not the beneficiary's fault. European jurisprudence protects those who acted in good faith, but it is necessary to formally allege this in the appeal. Spanish courts have already applied this doctrine several times, freeing citizens from repaying amounts that the Administration had mistakenly paid them. In this case, the TSJCV gave SEPE a ten-day period to appeal, although legal sources consider it unlikely that they will do so given the solid foundation of the ruling.
For those affected, the key is to demonstrate that the money was spent on basic needs and that the repayment would be disproportionate. The Valencian ruling sets a clear precedent: if the error is on the part of the Administration and the citizen is honest, the courts can exempt them from repayment.
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