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Overpayment Policy

Introduction

This document sets out our policy with regard to overpaid Housing Benefit and Council Tax Benefit.

You can request information about an overpayment online.

Our aim is to 'pay the right people, the right benefit at the right time', and as a consequence to minimise the number of overpayments generated, by;

• Effective procedures to verify claims
• Prompt action to process changes of circumstances and cancellations
• Clear forms and leaflets to prevent misinterpretation and misunderstanding
• Well trained staff with access to comprehensive procedures and an awareness of problems relating to debt

Overpayments occur when the council has paid more Housing Benefit or Council Tax Benefit than the customer is actually entitled to.

The main reasons for overpayments are:-

• The customer/appointee/landlord fails to advise us of a change in the benefit recipient's circumstances.
• The customer/appointee/ landlord advised us of a change in the benefit recipient's circumstances but after the date the change occurred.
• We made a mistake.
• The Department for Work and Pensions (DWP) made a mistake.

It is in the authority's interest to maximise recovery of overpayments, as non-payment is a cost to the taxpayers of the district. The intention of this document is to formalise the procedures that are currently in use into an approved policy.

Where overpayments do arise each will be considered on an individual basis.

Overpayment Procedures

Where an overpayment is identified by a member of the Benefit Team the following procedures apply:

1. Where the overpayment is a result of a mistake by the DWP we shall not seek to recover the overpaid amount.
2. Where the overpayment is as a result of a mistake made by us, we will seek to recover only if the customer or the person to whom the payment was made could reasonably have been expected to realise they were being overpaid.
3. Where the overpayment is Council Tax Benefit (termed 'excess benefit'), and is recoverable, the amount will be added to the Council Tax Account and recovery sought in accordance with Council Tax legislation.
4. Where payment of Housing Benefit is made to a landlord and an overpayment is discovered, the authority will consider the reasonableness of seeking recovery from the landlord in accordance with DWP guidance. A judgement will be taken on several facts including whether the overpayment was as a result of a deliberate action to obtain more benefit than the claimant was due and whether the landlord was aware of this action.
5. Where the customer is deemed responsible for the overpayment of Housing Benefit we will, wherever possible, seek to recover the amount outstanding from ongoing entitlement of Housing Benefit. If the customer ceases to be eligible for Housing Benefit we will then look to recover the debt direct from the customer.
6. Where an overpayment of Housing Benefit is due to the death of the customer we will look to the estate for settlement of the debt.
7. Where the debtor is unable to settle the debt in full, payment by instalments will be considered. The debtor may request this at any time prior to the case being taken to County Court. Should the debtor default on the instalment agreement the Council will seek to recover the debt outstanding in full.
8. If recovery of overpaid Housing Benefit is to be sought from the landlord, the authority may consider making a deduction from any future payments due to him in respect of other tenants receiving Housing Benefit (Blameless Tenant)
9. Where appropriate, recovery may be sought from other prescribed Social Security Benefits e.g where there is no Housing Benefit in payment and we have been unable to recover the debt via any of the methods stated above.
10. On occasion there may be exceptional reasons why the Council should not look to recover the debt. Any such case will be considered based on the circumstances at the time.
11. Where all appropriate action has been taken and there is no possibility of the Housing Benefit debt being recovered, or where exceptional reasons apply (Paragraph 12), we shall consider write-off. If, however at a later date the customer again qualifies for Housing Benefit, the debt will be re-instated and recovery will commence from ongoing Housing Benefit.
12. Write-offs of debts will be authorised in accordance with the Council's financial regulations. This is as follows, up to £250 Head of Revenues, £250 to £1000 Director of Resources, £1000 to £2000 Director of Resources and Chief Executive, any amount over £2000 goes to Committee.

Recovery Arrangements

All 'persons affected' will receive appropriate notifications explaining clearly their rights of appeal. Recovery should not take place whilst an appeal is pending.

Recovery procedures

Recovery process could include one or more than one of the following;

• From ongoing benefit
• From underpaid benefit
• Through invoice and following appropriate action as determined through Legal processes
• Deduction from benefits administered by other agencies