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Overpayments

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Overpayments occur if we decide we should have been paying a lower amount of benefit.

This will happen if we discover we have made a mistake in our assessment of your benefit, or if we find out that we were unaware of something that would have affected your entitlement. The most common reasons for overpayments are:

  • You may have given us wrong information
  • You may not have told us something we needed to know
  • You may have been slow to tell us of a change
  • We may have been slow to deal with something you told us
  • We may have made a mistake

In the case of Council Tax Benefit, we pay benefit to cover until the end of the financial year. It's quite likely that something will change during the year and we find that we've paid too much, or too little, for the rest of the year.

Can we ask for the money back?

  • Yes, if it was your fault
  • Yes, if it was not our fault
  • Yes, even if it was our fault, if you could have realised you were being overpaid. For example, if you got a pay rise you should expect your benefit to go down. If your benefit hasn't changed you should realise something is wrong
  • No, if it's our fault and you couldn't have realised you were getting too much

How we recover payments

  • If you are still on Housing Benefit, we can take money out of each week's benefit to recover the overpayment
  • If we owe you arrears of benefit, we can hold on to the money and use it to repay your overpayment
  • We may send you an invoice asking you to make arrangements to repay the overpayment
  • If we've been paying your benefit to a private landlord or housing association we may ask them to repay the money
  • We can ask the Benefits Agency to take money out of your social security benefits
How we tell you about overpayments

We have to tell you about overpayments and the action that we take on them.
First we will write to tell you the new, lower amount of benefit you're entitled to or we'll tell you when you stopped being entitled. We also tell you, usually in a separate letter, how much you've been overpaid altogether. This letter:
  • May tell you how we're getting the money back
  • Or may say that we'll be in touch later about paying it back. If so, we'll write to you again to tell you what we're doing or to ask you to send us the money, or to tell you we'll take no further action
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