Housing Benefit Overpayments
What is an Overpayment?
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 tenant 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 may 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.
How does the Council deal with Overpayments?
The rules concerning the administration of
benefit overpayments are contained in the Housing Benefit
Regulations and other subsequent legislation. The Council has a
duty to implement these legal provisions, and has a duty to recover
overpayments from tenants and landlords. The Council may also
decide to take criminal proceedings in respect of fraudulent
overpayments.
Who can an Overpayment be recovered from?
An overpayment is recoverable from either the
person who caused the overpayment, or the person who received the
overpayment.
How is Benefit recovered from the Tenant?
If the tenant is currently receiving housing
benefit, the overpayment will be recovered from future benefit
payments by a weekly deduction known as a 'claw-back'.
If payments are made direct to the landlord,
the tenant's reduced entitlement will be reflected by the amount of
the benefit payment that is issued every 4 weeks.
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 they are in receipt of or an invoice for payment may be
issued so that the claimant can repay the debt at any council
office.
How is Benefit recovered from the Landlord?
If the Council has decided to recover an
overpayment from a landlord it will either issue an invoice or make
deductions from the benefit of another of the landlord's
tenants, where that tenant receives benefit which is paid to
the landlord directly. The amount of these deductions should not be
treated as rent arrears for those tenants, and the landlord must
not try to recover the shortfall from them. Recovery of an
overpayment will not prejudice any criminal proceedings that may be
taken by the Council in respect of fraudulent overpayments.
Is there a Right of Appeal?
Only the tenant can ask for a review of a
decision to recover an overpayment by "claw-back". The "claw-back"
could be in respect of an overpayment at the current address or a
previous one. The tenant would have been notified in writing that a
weekly deduction was being made. The landlord will be notified of a
'claw-back' from a tenant's entitlement if housing benefit is paid
directly to that landlord.
Benefit Regulations do not give a right of
review to the landlord in the above circumstances, and neither can
the Council discuss details of the tenant's claim with the
landlord.
A landlord can only request a review where
recovery is being sought from him personally; that is, where an
invoice for payment has been issued to him, or a deduction is being
made from the benefit he receives for one of his tenants in order
to recover an overpayment owed by the landlord.
Where the overpayment is owed by the landlord
personally, he will be notified in writing of a decision to recover
from him. Any request for a review should be made within 1 calendar
month.
A landlord can write to the Council at any time requesting a
written statement of reasons for the recovery of an overpayment
from him.
What will happen if the debt is not repaid?
Where an invoice remains unpaid, or an agreed
arrangement to repay the debt over time is not being maintained,
the Council may take action in the County Court.
A landlord who habitually fails to repay
overpayments that are recoverable from him, can be declared that
they are not a 'fit and proper person' under Benefit Regulations,
and the Council can therefore refuse to make payments
to them directly.
Allerdale Borough Council
