Housing benefit - overpayments

What is an overpayment?

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

Why do overpayments occur?

Overpayments can occur because of many differenct factors.  A typical reason is when your income increases for a past period which then reduces the level of benefit awarded.

What happens when an overpayment is discovered?

When an overpayment is found, the following decisions are made:

• The period of the overpayment
• The amont of the overpayment
• The cause of the overpayment
• Whether the overpayment is classed as 'recoverable'
• Whether to recover the ovepayment
• Who the overpayment could be recovered from
• Who the overpayment should be recovered from

We will then write to you providing you with more information.  If we were making payments of housing benefit to your landlord when the overpayment occurred, we will also write to them.

What if the overpayment was not my fault?

If you actually reported a change to us and we did not act upon it for a long time, then we will not automatically ask for it to be repaid.  Much will depend on whether you knew you were being overpaid Benefit at the relevant time. 

Overpayments due to delayed benefit awards

Sometimes, you may be claiming housing and council tax benefit whilst you are waiting for another social security benefit to be awarded.  If you are then awarded the other benefit, this may result in an overpayment of housing and council tax benefit.  We will usually ask for this money to be repaid.

Overpayments paid to landlords

If we were paying benefit to a landlord and then found out that there had been an overpayment, we will normally ask the landlord to pay the money back.  However, if there is a good reason why we should ask you for the money instead then we will do this.  An example could be where you had started work and had not told us and your landlord could not have been expected to know that he was being overpaid.  Each overpayment case is considered on its own merits.

How do I repay an overpayment?

Normally, we will take a weekly amount back from your current housing benefit if you are still entitled.  Otherwise, we will send you an invoice asking you to repay the money.  Either way, we can discuss repayment with you so that we don't ask you to pay too much each week.  If you have an overpayment which is being recovered from your current housing benfit entitlement and the amount it is being recovered at is causing you hardship or you have received an invoice and cannot afford to pay the overpayment back at the rate shown please phone our overpayments section on 01303 853342 for advice. 

Overpayments of council tax benefit are transferred on to your council tax account and will then be included in your future instalments.