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HB Over/Re Payment Question


peachiebird
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Please can anyone help with 2 HB overpayment issues:

 

A. Where a local authority eventually admits that due to their extensive delays and mistakes (in updating information on varying income of the HB recipient) a significant overpayment occurred, does this have to be repaid if the recipient is in a difficult financial situation?

 

B. If someone recieves Child Tax Credit and Working Tax credit but HMRC has due to its own oversights overpaid these over a long period (during which these were taken into account for HB calculation), does the local authority have to retroactively correct & account for the period during which HMRC overpaid CTC and WTC and thereby caused reduced HB payments?

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A If you could reasonably know that the benefit you were receiving was wrong, then you would still have an overpayment. However if you had no way of knowing your award should have reduced - and can show you wouldn't have known, then you wouldn't have to pay back the overpayment.

 

B The LA will not amend their HB calculations due to a tax credit overpayment. Your HB award is based on what you were receiving at the time. You may be able to challenge the tax credits overpayment based on it being their error. I'm not sure whether for tax credits it makes a difference whether you could have reasonably known you were being overpaid.

 

Hope that helps

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