Overpayment of Housing and/or Council Tax Benefit
What is an overpayment?
An overpayment is when we pay you or your
landlord an amount of Housing or Council Tax Benefit, but you were
not entitled to receive it. If we pay you too much benefit,
we will usually ask you to pay back the amount we have
overpaid. This is called a recoverable overpayment
What is a recoverable overpayment?
We can recover all overpayments, except if
they are caused by an official error and which you could not
reasonable have known about when you were paid or told about your
benefit. An official error is a mistake we make. It is
not an official error if you or a person acting on your behalf
contributed to the mistake by not giving us information or by
giving false or misleading information.
Examples of why overpayments happen
- You may have forgotten to tell us that your
income has increased, for example you have had a pay rise or your
tax credit award or pension amount has changed.
- Somebody has moved into or out of your
home
- You may have started work or changed
jobs
- You may have moved out of your home and not
told us
- If you have any other adults living with you,
their circumstances may have changed.
How will I know if I have an overpayment?
- We will send you a letter giving you the full
details of the overpayment. The letter will set out
- How the overpayment occurred
- The amount of the overpayment
- The period the overpayment covers
- If it is a recoverable overpayment
- How we will recover the overpayment
- What to do if you disagree with the
overpayment
Can you reduce the overpayment?
In some circumstances we may reduce the amount
we overpaid you if you tell us about your correct circumstances
throughout the period of the overpayment. If we give you
benefit for the period you were overpaid it is called underlying
entitlement, this means you were actually entitled to receive some
of the benefit; we will use this to reduce the overpayment.
What can I do if I disagree with the
overpayment?
If you disagree with the overpayment you must
write and ask for a detailed explanation, or ask us to look at our
decision again. You must do this within one calendar month of
the date on the letter.
The areas you can challenge are:
- If we can recover the overpayment or not
- Who we can recover it from
- How we have worked it out
- If you had an underlying entitlement
You cannot challenge:
- If we should recover the overpayment or not;
and
- How we choose to recover the overpayment
Can I appeal?
If you’re not satisfied with our decision or
how we explain our decision, you can appeal. You must appeal
in writing and sign it. You must make it clear which decision
you are appealing against and your reasons for appealing.
Send your appeal to us, see contact
details. You must do this within one calendar month of the
decision you are appealing against. Your appeal will be heard
by a tribunal run by the Tribunals Service, who are independent to
us.
How do you recover the overpayment?
- If you are still getting Housing Benefit, we
may reduce your benefit each week to recover the overpayment.
- If we are not paying your Housing
Benefit, we may send you a bill and you should make arrangements to
pay us
- If we pay your landlord your benefit, we may
ask the landlord to repay the overpayment in certain
circumstances
- We can ask the Department for Work and
Pensions to take money out of your social security benefits to
collect the overpayment.
- If we overpaid your Council Tax Benefit we
will add the amount of the overpayment to your Council Tax
bill. Our Council Tax office will collect the overpayment by
increasing your monthly payments.
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