An overpayment is an amount of benefit that has been paid, but under the statutory regulations, the customer was not entitled to have it. The term we use for overpaid council tax benefit is 'excess benefit'.
An example would be if a customer 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.
If you have a change in your circumstances, it is important that you tell us straight away. You can do this by completing a change of circumstances form in the online forms section of our Online Services.
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.
Notifying you of overpaid benefit
If you have been overpaid Housing Benefit or paid excess Council Tax Benefit, we will write to tell you within 14 days of the decision (or as soon as reasonably practical). The letter we send you will tell you:-
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dates when benefit was overpaid
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why we gave you too much benefit
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how much the overpayment is
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if you have to pay back the amount
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how you can appeal if you think this is wrong
Underlying entitlement
In some cases we may be able to reduce the amount if you provide us with further details of your circumstances for the period of the overpayment. This is called underlying entitlement. We will write to you where this applies. If you do not provide the details we ask for within one calendar month you must pay back the full amount of the overpayment.
Paying back overpaid benefit
We have a legal duty to recover overpayments from tenants and landlords. All overpayments are recoverable except those, which were caused by an official error where the claimant, or person to whom the benefit was paid, could not reasonably have been expected to realise that they were being overpaid at the time of the overpayment.
We will add your excess benefit to your council tax account. You will receive a revised council tax bill telling you your new installments.
We may take criminal proceedings in respect of fraudulent overpayments.
Who must pay back the overpayment?
An overpayment is recoverable from either the person who caused the overpayment, or the person who received the overpayment.
If you are still receiving housing benefit, the overpayment will be recovered from your future benefit payments by set weekly deductions.
If payments are made direct to the landlord, your reduced entitlement will be reflected by the amount of the benefit payment that is issued every 4 weeks. You will then be responsible for paying the resulting shortfall to your landlord.
If you are not currently receiving housing benefit, an invoice for payment may be issued, you can arrange to pay by installments, or the overpayment may be recovered from other benefits.
What will happen if overpaid benefit is not repaid?
Failure to repay the overpayment may result in court action being taken.
Your appeal rights
You have one calendar month from the date you are notified about the overpayment in which to make an appeal. The appeal must be in writing stating clearly the grounds on which you wish to appeal. Recovery of the overpayment may be put on hold, pending the outcome of the appeal.
