What Is An Overpayment?
||Why Do Overpayments Occur?
Overpayments can occur because of many different 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 amount of the overpayment
- The cause of the overpayment
- Whether the overpayment is classed as 'recoverable'
- Whether to recover the overpayment
- Decide from whom the overpayment should be recovered
We will then write to you shortly afterwards 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 whether you were being overpaid benefit at the relevant time.
Overpayments Due To Delayed Benefit Awards
Sometimes, you may be claiming Housing Benefit or 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 Benefit or Council Tax Benefit. We may 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 may ask the landlord to pay the money back direct. 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 for you to repay the money. Either way, we can discuss repayment with you so that we do not ask you to pay too much each week.
Overpayments of Council Tax Benefit are transferred onto your Council Tax account and will then be included in your future instalments.
For further information download the Overpayments information leaflet.
