Housing Benefit Error

[dw190]

Can someone clarify the position when Housing Benefit has been overpaid in error by the Local Authority.

The benefit is paid directly to the Housing Association as Part Payment of the rent, the balance is calculated by the Association and is paid by Standing Order.

Housing Benefit section of the Council have had all the required documentation relating to income but have wrongly calculated the benefit. Over £600 has been overpaid over a twelve month period.

Are the Council entitled to recover this overpayment?

I understand that Social Security cannot recover overpayments of their own errors. Does the same apply to Councils?

[JOSH_IOU]

you would flag up the fact its maladministration go to the local government ombudsman

[hagenuk]

It is not true that Social Security cannot be recovered, as in fact can housing benefit. There is an appeal process administered by The Tribunals Service which is an executive agency of the Department for Constitutional Affairs.

Overpayments and excess awards of benefit can be heard at a tribunal and when anyone receives a benefit or allowance to which he or she is not entitled, the amount overpaid may be reclaimed by the department or local authority. To do this, there must first be decisions

(a) that the benefit was not payable,
(b) determining the amount of the overpayment and
(c) deciding whether, and from whom, the overpayment can be recovered.

Overpaid benefit is usually recoverable from the person who receives the money. But anyone else who was responsible for the overpayment being made may also be liable for recovery. The relevant provisions are in the Social Security Administration Act 1992 sections 71 to 75, regulations 98-105 of the Housing Benefit (General) Regulations 1987 and regulations 83-91 of the Council Tax Benefit (General) Regulations 1992.

A decision that an overpayment is recoverable by the Secretary of State or local authority may be a separate decision from the decision that the claimant is not entitled to benefit, or is entitled to less benefit than was previously awarded. If the decisions are separate decisions, then there are separate rights of appeal from each decision. The right of appeal against a decision about recoverability of overpayment is provided by the same law as the appeal about entitlement to the benefit. If a decision that there was an overpayment of benefit and that the overpayment is recoverable are taken at the same time as the decision reducing or removing entitlement to benefit, then the appeal can cover any aspect of the decision.

[Joa]

http://www.consumeractiongroup.co.uk...ror#post699284

Q1 Did you give them ALL CORRECT information in a TIMELY fashion? If yes, move to Q2, if no: overpament recoverable.
Q2 Would it be REASONABLE to expect of you that you'd understand the calculations, the total amount of the award? For example, you have been in receipt of benefit for years and you know roughly how much you should be getting and there were no changes in your circumstances. If yes, o/payment recoverable. If no- o/payment NOT recoverable due to OFFICIAL ERROR.

An overpayment is caused by an official error only if it has been caused by a mistake (whether an act or an omission) by the local authority, DWP or HM Revenue and Customs where neither you or any other person to whom payment has been made contributed to the mistake.

If your local authority has stated that an overpayment due to official error is recoverable because you could reasonably have been expected to notice that you were being overpaid, and the weekly amount of the overpayment was very small, you should argue that you could not reasonably have been expected to notice the discrepancy.

If the overpayment is substantial, and resulted from the local authority incorrectly assessing accurate information which you provided , you should argue that, given your lack of understanding of how benefit is calculated (and it is quite a complex calculation), you could not reasonably have been expected to notice the error. Google for R. v Liverpool City Council ex parte Griffiths, March 14 1990 where it was ruled that o/payment was not recoverable because it was not reasonable to expect the claimant to work out her housing benefit entitlement.

Government guidance (Housing Benefit and Council Tax Benefit Circular HB/CTB A13/2006) says a local authority should delay recovering an overpayment from ongoing housing benefit until your time limit for appealing against the decision to recover the overpayment has run out. The local authority is not legally obliged to delay recovery, but it is good practice if it does because it gives you time to exercise your right to appeal. If a local authority refuses to delay recovery, you may wish to make a complaint.

What to do now: as in the link above, appeal in writing, seek further professional advice, write to your Housing Association and ask for recovery to be suspended.

Keep us posted.

[dw190]

Thanks for the replies.

Joa,
This is similar to the one in the link.

Sons GF started work when the youngest started full time school.

Housing benefit was assessed on her expected income and confirmed when payslips were produced.

She pays an amount to the landlord (Housing Association) which HB calculated she had to pay, they pay the balance direct to landlord..

The HB have written to the landlord advising of the overpayment, who in turn has written to sons GF.

HB have recalculated and have said they will reduce the HB by £20 per week and also want to reduce by a further £20 per week. In total this is more than they have been paying to the landlord.

I have asked for all the paperwork to go through and she has requested a full breakdown and identification in the breakdown where the error has occurred. It appears to be HB's calculation error.


Will keep you informed of the outcome.