Overpayments
An overpayment is an amount of Benefit that has been paid, but for which there was no entitlement under the regulations.
An example would be if a claimant failed to tell the Council that their income had increased and a recalculation of their
entitlement meant that they had been paid too much Benefit.
A fraudulent overpayment would occur when a person has deliberately provided a false statement or document, or has deliberately
failed to report a change of circumstances with the intention of obtaining or retaining Benefit.
If we give you too much Benefit, we will send you a letter. When we give you too much Benefit we call it an “overpayment”
for Housing Benefit and “excess Benefit “ for Council Tax Benefit.
The letter we send you will tell you:
- The amount of overpaid Housing Benefit or excess Council Tax Benefit
- The period of overpayment
- Why we gave you too much Benefit
- If you have to pay back the amount
- How you can appeal if you think the decision is wrong
How does the Council deal with overpayments and excess Benefits?
The rules concerning the administration of Benefit overpayments are contained in the Housing and Council Tax Benefit Regulations
and other legislation. The Council has a duty to implement these legal provisions and to recover overpayments and excess Benefits.
The Council may also decide to take criminal proceedings in respect of fraudulent overpayments and excess Benefits.
Who does the Council recover the overpaid and excess Benefits from?
These are recoverable from the claimant or anyone to whom the payment was made.
How is Housing Benefit recovered from the tenant?
If the tenant is currently receiving Housing Benefit, the overpayment will be recovered by making weekly deductions from
their future Benefit payments.
In cases where payments are made direct to the landlord, the tenant's reduced entitlement will also reduce the amount of
Benefit that is paid to the landlord.
The tenant is responsible for paying any rent arrears that occur as a result of the reduced amount paid to the landlord.
If the tenant is not currently receiving Housing Benefit, the overpayment may be recovered from other Benefits or an invoice
for payment is issued.
Recovery of an overpayment will not stop any criminal proceedings that may be taken by the Council in respect of fraudulent
overpayments.
How is Housing Benefit recovered from the landlord?
If the Council has decided to recover an overpayment from a landlord, it will issue an invoice or make deductions from
other tenants' Benefit paid to that landlord. The Landlord should not then increase the shortfall payable by other tenants.
Recovery of an overpayment will not stop any criminal proceedings that may be taken by the Council in respect of fraudulent
overpayments.
Is there a right of appeal?
The claimant can ask for a review of a decision to calculate an overpayment. Any such request should be made within one
calendar month of the decision notice. A landlord can request a review where recovery is being sought from him, that is, where
an invoice for payment has been sent to him or a deduction is being made from payments of Benefit he receives for other tenants.
Where the landlord owes the overpayment, he will be notified in writing of the decision to recover from him. Any request
for a review should be made within one calendar month of the decision notice.
A landlord can write to the Council at any time requesting a written statement of reasons why the recovery of an overpayment
is being made from him.
For further information on the appeals process, see the Appeals link below
What will happen if an overpayment is not repaid?
Where an invoice addressed to a former claimant or a landlord remains unpaid or an agreed arrangement to repay the debt
over time is not being maintained, the Council may take action through the County Court.
Important notes
A landlord can only request a review where recovery is being sought from him, that is, where an invoice for payment has been
issued to him or a deduction is being made from payments of Benefit he receives for other tenants.
If a landlord habitually fails to repay overpayments that are recoverable from him, the Council can decide that the landlord
is not a 'fit and proper person' in accordance with Benefit regulations and the Council can refuse to make direct Benefit
payments to that landlord.
For further information on overpayments, you can download the Council's overpayment leaflet using the link at the bottom
of this page.
How is excess Council Tax Benefit recovered from the claimant?
These are added to the Council Tax account, which will increase the instalments.
Is there a right of appeal?
The claimant can ask for a review of a decision to calculate excess Benefit. Any such request should be made within one
calendar month of the decision notice.
For further information on the appeals process, see the Appeals link below
|