HOUSING BENEFIT OVERPAYMENTS

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HOUSING BENEFIT OVERPAYMENTS Local Housing
Allowance Clare Brandon, Principal Officer
Benefits E-mail CBrandon_at_pkc.gov.uk
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Definition of a Housing Benefit Overpayment
This is any amount of housing benefit or
council tax benefit which has been paid and to
which there is no entitlement under the
regulations. HB Reg 1998 / CTB Reg 1983
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Calculation of an overpayment

• Housing Benefit-
• Overpayments should be calculated in full weeks,
  not part weeks (except in rent allowance cases
  where HB is paid non-weekly).
• Council Tax Benefit-
• Overpayments are calculated daily. Any change in
  circumstances must be taken to the following
  Monday (as in HB), but it is important to change
  such things as liability from the actual day the
  change occurs.

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Establishing the cause of an overpayment /
classification of the overpayment.

• Classification of an overpayment is vital as it
  will affect the
• amount of subsidy Perth Kinross Council can
  claim from the
• Department for Work Pensions. It also
  determines the
• recoverability, if PKC claim the wrong amount of
  subsidy, the
• DWP are able to impose a penalty.
• Claimant error where the claimant fails or
  delays notifying PKC of a change in
  circumstances.
• LA error where PKC makes a mistake, omits or
  fails to act on information provided within the
  prescribed time scales.
• Departmental Error is where the DWP, Pension
  Service or HMRC makes an incorrect determination
  on which we base benefit entitlement.
• Fraud cases investigated by a designated fraud
  officer, and defined as fraudulent.
• Other error any other overpayment that is not
  included in the above categories, caused by say
  death or delayed receipt of an income e.g.
  private pension.

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Is the overpayment recoverable?

• The general rule is that all overpayments are
  recoverable,
• except those caused wholly by official error. If
  the
• overpayment was caused by departmental error, and
  the
• mistake was not caused or contributed to by the
  claimant
• or landlord, and they could not have been
  reasonably have
• been expected to know either at the time of the
  notification
• or payment of the overpayment, there is no
  discretion and
• PKC has no right of recovery. Therefore,
  emphasis is on
• the consideration of reasonably have been
  expected to
• know.

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Rates of Recovery

• A maximum of amount 9.00 may be deducted from on
  going benefit entitlement each week for the
  majority of cases.
• This is increased to 12.00 for fraudulent cases.
  (admission of guilt or found guilty in court of
  law).

• 50 of certain disregarded income may be used to
  increase the rate of the ongoing deduction.
  (Disregarded earned income, war pensions etc).
• The claimant can chose to increase the payments
  and similarly we should consider lowering
  deductions in cases where the claimant would
  suffer undue hardship.

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From whom will recovery be sought?

• Recovery may be sought from the following-
• The claimant.
• The person to whom benefit was paid, landlord /
  agent / appointee.
• The person who failed to disclose or
  misrepresented a material fact.
• A partner of the claimant provided they are both
  members of the same household at the time the
  overpayment occurred and at the time the
  overpayment is recovered. (ongoing deductions ).

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Notification of the Overpayment

• The calculation and recovery of an overpayment is
  open to
• an Appeals Procedure. Within one month of the
  decision
• notice you can-
• ask us to reconsider our decision.
• Review our decision after we receive a written
  appeal. If we cannot change the decision in your
  favour we will pass the case directly for
  consideration to the Independent Appeals Service.
  

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Methods of recovery

• Deductions from on going entitlement to housing
  benefit.
• Deductions from housing benefit arrears. (same
  period as op period).
• Placing the debt in a sundry debtors account and
  invoicing for the overpayment. To be paid in 14
  days or by payment in instalments by agreed
  arrangement only.
• From housing benefit of tenants unrelated to the
  overpayment known as blameless tenant recovery
  this is where the overpayment is recovered from
  another tenant of the same landlord to whom the
  overpayment does not relate.
• Deduction from a prescribed benefit. (excludes
  tax credits and child benefit).
• Arrangements with another Local Authority.

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DEFAULT ACTIONS

• Authority Social Security Administration (Fraud)
  Act 1997
• This procedure sets out the process and gives
  details of the collection and
• enforcement provisions introduced by Section 16
  of the Social Security
• Administration (Fraud) Act 1997. The new
  legislation provides that
• housing benefit overpayments, which is not
  recoverable by direct
• deductions, may be recovered in Scotland as if it
  were an extract
• registered decree arbitral.
• The provision in Section 75 (7) of the Social
  Security Administration Scotland Act
• 1992 allows housing benefit to be immediately
  enforceable as if it were an extract
• decree arbitral, by the usual methods of
  diligence as follows
• Attachment auction
• Arrestment of earnings
• Arrestment of moveable property in the hands of a
  third party (bank, building society account etc.)
• Inhibition of heritable property
• FOR INFORMATION ONLY Any formal appeals being
  made by the debtor must be

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Questions Answers

• E-mail CBrandon_at_pkc.gov.uk