Housing benefit overpayment & recovery

Peaches.82

I have been paying back an overpayment of HB through my existing entitlement. i recently had a change of circumstances and as a result i was due approx £500 in benefit underpayments. i spoke with HB office who said this was due to be paid to me. since then i have received a letter to advise this amount will be used to reduce overpayment.

can they do this as i really need this money for rent and cant afford for them to do this.

please can someone give me a bit of advice.

Vader123

Peaches.82 wrote: »

I have been paying back an overpayment of HB through my existing entitlement. i recently had a change of circumstances and as a result i was due approx £500 in benefit underpayments. i spoke with HB office who said this was due to be paid to me. since then i have received a letter to advise this amount will be used to reduce overpayment.

can they do this as i really need this money for rent and cant afford for them to do this.

please can someone give me a bit of advice.

If you lent money to someone would you lend them more before they paid back what they originally borrowed?

So yes, "they can do this" and its sensible to claw back overpayments by means of reducing underpayments.

Its what everyone else would do.

Vader

AsknAnswer2

It's known as "offsetting" and yes, they can do it.

fluffymovie

Usually however, we would only offset an underpayment against an overpayment if they were for the same period. If they are for different periods, you may be able to ask them to contra back the amount they have used to recover against the o/p and issue that to you.

However, it is hard for an LA to do this as effectively, they are extending the period during which time you are in debt to them

Peaches.82

the overpayment is from a couple of years ago. they have been recovering it from my existing entitlement at about 15 per week, the backdated money they are using is from the last couple of months as i was waiting for my payslips from work and i had my tax credits reduced.

as well as that when i called them on the 28th sept they told me they were paying it to me, then i receive a letter dated 30th sept telling me its being used to reduce the overpayments.

so confused and i was relying on that money to pay rent.

AnxiousMum

On the 28th before you knew you had an underpayment owing to you - how were you planning on paying rent?

Peaches.82

because i knew i had been getting underpaid for the last 3 months, (not that, that is relevant to my query!) i had been waiting for payslips as i only work part time while my disabled son is at school. and had to take 7 weeks off work unpaid to care for him. so couldnt get my payslips or get to local housing office to get it done quicker, this was then followed by a 6 week backlog at their office.