Benefit Overpayments

What are overpayments?

An overpayment occurs where you have been paid more Benefit than you are entitled to. A change of circumstances may reduce your benefit. This could be for a number of reasons.

For example:

• An increase in your income
• Someone moving in with you
• You moving out of the property

If we do not know about a change in circumstances until sometime after it has happened an overpayment may occur. If an overpayment arises, the Council are legally obliged to try and get the money back.

How will the overpayment be recovered?

The overpayment may be recovered from either the person who caused the overpayment, or the person who received the overpayment.

Do you always recover all the overpayment in one go?

No.

Overpayments of housing benefit will, if possible, be recovered direct from your on-going entitlement to benefit at set weekly rates. Overpayments of Council Tax benefit will be payable through your Council Tax bill. Please contact us if you wish to make an arrangement to clear the overpayment.

If your housing benefit is paid direct to your Landlord we will notify you and your landlord of the overpayment and we will deduct a set amount from your benefit entitlement from the amount that is sent direct to your Landlord.

If you no longer qualify for Housing Benefit an invoice will be sent to you and if you cannot make full payment all in one go, you can make a request  to arrange repayment of the debt by instalments.

Arrangements can be made by telephoning the Council's debt recovery unit on (01327) 302336.

 

What if I can't pay the money back?

If you let us know that you are having difficulty making repayments we can consider recovering the debt over a longer period of time. You should contact the Council’s debt recovery unit  (on the above number) to discuss.

Can I appeal against an overpayment?

Yes - you have one calendar month from the date you are notified about the overpayment in which to make an appeal. (see the notes on the appeal process)

If we are making direct deductions from benefit being paid to your Landlord they can also appeal.

What happens if the Overpayment is not repaid?

Please do not ignore our letters as the debt will not go way. If the overpayment remains unpaid, or an agreement to repay the debt is not being maintained , the Council may take legal action through the Courts to recover the debt owed.If we do have to take further action to recover the money the amount you own will increase because if the debt is taken to Court, costs will be incurred.

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