Housing Benefit "Overpaid" after Incapacity Benefit Stopped as a Student

[citizen83]

The Local Authority (LA) has written to inform me that they have cancelled my Housing Benefit (HB) and Council Tax Benefit (CTB) claim because:

 

“You were claiming as a disabled student, but failed to inform us that your Incapacity Benefit ended in February 2010 and you no longer qualify for benefit from that date.”

 

As I now have no other income (except the existing HB payments) I decided to apply for Job Seekers Allowance, which was I eventually awarded last month.

 

“if you are no longer a student (which I'm not) you may still qualify for benefit, please call us if this is the case to complete an application” the last letter tells me - this is what I'm in the process of doing now so I don't fall behind with my rent now I am not getting HB.

 

I have been claiming IB for about 18 months before claiming Housing Benefit which was awarded from October 2009.

 

Between September 2009 and April 2010 I was also in receipt of a Student Finance Loan. I had been advised this was permitted, and the LA calculated my HB entitlement taking all these facts in to account.

 

In March 2010 I noticed my IB had stopped being paid in to my bank account, but I wasn't told why. There had been no change in my circumstances.

 

I genuinely was not aware this meant I was being overpaid HB since I had not been informed by JCP of any decision stating I no longer had an entitlement to benefit.

 

I spoke to JCP hoping for an answer, I was advised my IB might have been suspended because I failed to attend a work capability assessment, I was told they would write to me if this was the case.

 

About a fortnight later I received a notification from JCP which I informed me of a change in my Incapacity Benefit. The letter stated my benefits were due to be adjusted and will shortly increase “due to the annual rise in benefits”.

 

I also received a new HB/CTC “Benefit Decision Notice” from the LA. I assumed this was in relation to the changes in my IB which I had just been informed about, and the reason for the recalculation on this LA letter was stated “Annual Updating”.

 

To this date, I have still not received any written explanation why my IB payments had suddenly ceased, even though I was told I otherwise. This error was made even more confusing and distressing, especially after receiving correspondence to the contrary fact, actually confirming the amount I was expecting to be paid.

 

I have been sent an invoice for overpayment of £1,890 (which I cannot afford up front).

 

If this is entirely my fault then as unfair as it may be, I am willing to pay it all back in reasonable installments.

 

This will take a significant time to pay back, and I would question if it is even recoverable considering I had no additional income and all the HB received was required and used in good faith for the intended purposes (towards rent!) and think I may have even be underpaid.

 

Any advice/experiences/suggestions etc very welcome. I'm very distressed and embarrassed I have not been able to sort this out, and just want to get it resolves ASAP so I don't face eviction.

 

[rebel11]

Hi Citiz

 

Welcome to CAG

 

The guys will advise as soon as they are available.