• I am incapable of doing anything without being supervised
• I am not trustworthy

• the district manager has a complaint about misconduct to investigate (extra work)
• the branch manager has received a variety of written requests (extra work)
• Peter's line manager has received a variety of written requests (extra work)
• the data controller has received a request to send me a shed load of information about myself (extra work).
• Peter's friendly, helpful colleagues have their job made harder by the fallout . He posts notes telling them what to do, he makes everyday verbal agreements difficult, greatly complicating life for all involved.
• someone has to conduct and administer my appeal (extra work). If the appeal isn't to your liking you can push it further on to the Commissioner (even more work). If you don't think that she does a proper job, you can bring in the ICE on Jobcentreplus, or try a Judicial review  on the Commissioner.  You could also try checking out the Human Rights Act. The world is your Oyster! If you don't  think the ICE is enough, go to the Parliamentary Ombudsman.

I fully advocate the use of all available measures to defend yourself from such attacks. They deserve nothing less. It is fair to assume that people who think that it is reasonable to waste your time, effort and money have no objections to having the same done to them in return. John Hutton says that "such behaviour should have proper consequence". Follow his advice and return it.  I get the impression that he doesn't think those words apply to him.
Signing off is a bad idea, as this will be interpreted as being the equivalent of you becoming employed, which couldn't be further from the truth. Jobcentreplus shouldn't receive credit for something they haven't done.  Bullying a client does not equal finding them a  job. It is nothing more than small time intimidatation.
Creating the need for all those extra woman hours doesn't fit the plan to downsize the civil service, does it? Better check with John Hutton about that to see if he approves. I would ask him myself, but he finds it too challenging to be able to respond to any of my questions.  No doubt many of those workers who are not already temps will receive their redundancy notices shortly, but I will take a wild guess that John will not add his own name to the list.

Collusion or just plain apathy?
I decided to do a test to see how easy it  is to get an employer to provide you a with a short letter of support, with the aim of using these to defend myself against the attacks on me by Jobcentreplus.  These requests included an explanation of the circumstances and the possible  consequences for me. None of the employers that I contacted would respond to me.  
This is interesting as Peter seems to be able to obtain information about me, tailored to his needs, from the same employers without difficulty. Now is this just apathy e.g. not my problem mate you are just a doley scumbag anyway, my time is important, yours is not, or is it collusion with Jobcentreplus? Can you think of  a reason why they might join the Jobcentreplus camp? I can. How about getting free job adverts that might cost thousands of pounds via commercial means? You scratch my back.
One of the companies involved is a so called security firm, Ex Military Personnel, based in Kidderminster. Apparently they are so good at the security business that they don't know how to keep personal information about people from leaking out of their possession. Is that the type of organisation that you would trust to keep you secure? 

Update:
My appeal has been allowed, i.e. the DWP have been weighed, measured  and found wanting by the law. I am exonerated of the lies told about me.  Justice has been served. 
To summarise; Jobcentreplus made false accusations against me that they couldn't substantiate. It is unacceptable for them to do that in the first place and there was no reasonable course of action other than for me to defend myself. If you don't protect your rights  people like this will see to it that you lose them. They were encouraged to see sense and abandon their misguided actions, but refused to respond.
All that time, effort and money to achieve nothing. Futile, but, that's the way the DWP insist on playing it. This kind of activity just isn't productive, but they insist on time and money wasting and there is nothing you can do to reason with them.  Complacency levels are high even though foundations are largely absent. The deeper they get into it, the less they are willing to concede defeat and the more they close ranks on you. 

Conclusion:
Above all what needs to be learnt from this incident is that short term bullying measures i.e. benefit sanctions can never be a substitute for long term employment.  The most likely scenario for someone losing payments for 6 months is that they simply borrow money to fill the hole. The reason for that is that it is many times easier to borrow money than it is to find a job. Rarely are you asked "please come and work for us", but every day people receive letters and phone calls begging them to take on huge debts. I don't advocate borrowing money under any circumstances,  because it is primarily a means to transfer wealth from the poor to the rich, but neither do I advocate starvation and living on street corners in a cardboard box.