Benefit Overpayment

What is an overpayment?

If you have been paid more Housing Benefit or Council Tax Benefit than you were entitled to – that is an overpayment. For example, if you have been paid £150, but were only entitled to £100, then you have had an overpayment of £50.

How will I know that I have been overpaid?

If we pay you too much benefit, we will send you a letter explaining:

• how much has been overpaid
• how it was worked out
• the period to which it relates
• how it will be claimed back, and
• why the overpayment is being claimed back.

Why do overpayments happen?

Most overpayments happen because of a change in your circumstances. For example a change in your income, capital, childcare costs or the size of your family. Normally, we will ask you to pay back the overpayment.

The risk of an overpayment happening can be reduced, if you tell us straight away of any changes in your circumstances.

What if I agree with the overpayment but can’t afford to repay it all at once?

If you can’t afford to pay back the money in one go, we may accept weekly payments.

If you no longer get Housing Benefit, we will send you a bill. You can pay this by instalments, but you must arrange it with us first, in writing. If you would like to make a payment towards an existing overpayment, please call 01843 577550.

If you still get Housing Benefit, we may collect the overpayment by reducing the amount of benefit sent out to you. If we are paying your landlord and the Housing Benefit does not cover the full rent, you will have to pay this.

What if there is an overpayment but it was paid direct to someone else, for example my landlord?

In most cases overpayments are recovered from you. This is because you would have known benefit was being overpaid (a breakdown of benefit is sent to you even if you are not receiving the payments). The benefit paid is on your behalf, and only paid to a landlord at your request or in your best interest. Housing Benefit covers a rental charge that you are liable to pay, even if you are not the person who physically received the money.

The only time Housing Benefit is recovered from a landlord is when the landlord would have known that they were being overpaid. For example if you moved out of the property or we were paying more than the rental charge.

Council Tax overpayments pass directly onto your Council Tax account and you will receive a new Council Tax bill.

What if Im unhappy with the final decision?

See Reviews and appeals

Tel: 01843 577552

from 9am to 5.30pm.

Fax: 01843 577532

or Visit our offices

Call 01843 577550 to make a payment.