Housing benefit

Overpayments of housing and council tax benefit

Overpayments of benefit can occur both in housing and council tax benefit. An overpayment is an amount of benefit which has been paid but to which there is no entitlement under the rules.

Overpayments can occur because of many different factors. A typical reason is when the claimant's income turns out to have been higher for a past period, which means that they were entitled a reduced level of benefit.

When an overpayment is discovered

The following facts are established:

• the period of the overpayment;
• the amount of the overpayment;
• the cause of the overpayment.

The following decisions are then made:

• whether the overpayment is classed as recoverable;
• whether to recover the overpayment;
• from whom the overpayment should be recovered.

The benefit claimant will then receive a letter from the council with details of the overpayment. If benefit was being paid to the claimant's landlord, they too will receive notification.

If the overpayment is not the fault of the claimant

If a benefit claimant reports a change and the council does not act on it for a long time, it is not automatic that the claimant will be asked to repay the benefit. Much will depend upon whether the claimant was aware they were being overpaid benefit.

Sometimes a claimant will be receiving housing or council tax benefit while awaiting a decision over another social security benefit. If the other benefit is subsequently awarded, the claimant will normally be asked to repay overpaid housing or council tax benefit.

Overpayments made to landlords

If housing benefit has been overpaid to a landlord in respect of his tenant, the landlord will normally be asked to repay the money. However, if there is a good reason why the tenant should be asked to repay the money instead, the overpayment could be recovered from them. An example could be where a tenant starts work without advising the council and the landlord could not have been expected to know that they were being overpaid.

Each overpayment is considered on its own merits.

How an overpayment is repaid

The council will normally take a weekly amount back from the claimant's current housing benefit if they are still entitled. If this is not the case, an invoice will be sent. Either way, the claimant should contact the council if they are having difficulty repaying the overpayment.

Overpayments of council tax benefit are transferred to the claimant's council tax account and included in future instalments.

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