Overpayments

Overpayments and Excess Benefit

The term "overpayment" relates to Housing Benefit and "excess benefit" relates to Council Tax Benefit, however the rules are the same and therefore the term "overpayment" is used to refer to both.

What is an overpayment?

An overpayment occurs when benefit is paid when there is no longer an entitlement to Housing Benefit and/or Council Tax Benefit or your circumstances change so you are no longer entitled to the same amount of Housing Benefit and/or Council Tax Benefit that you were receiving.

How can I stop an overpayment occurring?

You must inform the Council, in writing, of any changes that happen that will affect your benefit entitlement. You must report these as soon as you can after they happen. Examples of changes hat could cause an overpayment are:

• Increase in your earned income
• Increase in capital
• Increase of any income that you receive
• Award of further income
• A person moves into your property
• A person moves out of your property
• You move from the property
• Your Income Support or Jobseekers Allowance stops
• Your rent changes
• Your non-dependant has a change to their income
• You no longer receive Child Benefit for your child/children

This is by no means a complete list of changes, so if you are unsure if your change in circumstances will create an overpayment please notify the Council.

How do you work out the amount of my recoverable overpayment?

The amount of a recoverable overpayment is the difference between the benefit that you were actually paid and the amount that you should have been paid.

To arrive at the amount of the recoverable overpayment, the Council works out:

• The amount of benefit actually paid over the period of the overpayment; LESS
• Any amount of benefit, which should have paid over part or all of the same period.

Where the change is because Income Support or income-based Jobseekers Allowance has stopped the amount of Housing Benefit and/or Council Tax Benefit overpaid can be reduced if you provide evidence of the income that you were getting during the overpaid period. Once you have supplied this information, the Council can assess what benefit you should get and this could reduce the recoverable overpayment.

Please see example below.

Original Housing Benefit entitlement £50.00 pw
Overpaid for 4 weeks
(4 X £50.00) = £200.00
Underlying Entitlement applied
Revised Housing Benefit entitlement £30.00 pw
Underlying Entitlement period 4 weeks (4 X £30.00) = £120.00

Therefore recoverable overpayment (£200.00 - £120.00) = £80.00

Will I have to repay the overpayment?

You will have to pay back all overpayments except where they are due to official error. Even an official error overpayment has to be repaid if:

• You, or someone acting on your behalf, or the person receiving the payment, could reasonably have been expected to realise that an overpayment was taking place at the time of payment or upon receipt of any notification relating to the payment; or
• It is an amount of rent or Council Tax Benefit that has been overpaid in respect of a period following the date on which the change took place that identified the overpayment.

How will I be asked to repay the overpaid amount?

If you still have an entitlement to Housing Benefit, repayment will be made from your ongoing benefit entitlement at a rate set by central Government. If this amount causes you hardship you can ask for it to be reduced. However, you will have to provide details of your income and expenditure in order to see if the Council will agree to the reduced amount.

If you are no longer entitled to Housing Benefit an invoice will be sent for the overpaid amount.

If the overpayment relates to your Council Tax Benefit the overpaid amount will be added to your Council Tax account and a revised bill will be sent to you.

What if I disagree with your decision?

You can ask the Council to look at their decision again. Please see the Appeals page for advice on how to request this.