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Council tax and Housing Benefit overpayment

tatepalate
tatepalate Posts: 2 Newbie
edited 13 January 2011 at 6:03PM in Benefits & tax credits
Hi everyone,

I was in receipt of Council Tax/Housing Benefit whilst on Incapacity Benefit, following my major surgery.

When I got better I started a new job. I informed both the Benefits Office and the Council by telephone that I had started work, and I asked for the 1 month roll over I was entitled to. I was informed by the council that this would be arranged for me, and they thanked me for letting them know of my change of circumstances. However, I noticed a couple of months later that they were still paying both Housing Benefit and Council Tax into my bank account. I called them straight away, and informed them of their error. I asked for them to calculate the overpayent amounts so I could pay the correct amount back to them.

I have since been informed by a colleague and friends that, because it was an error on their part, I will not have to pay the overpayment back to the local council. Please can anyone advise me if this is indeed the case or not? Thanks!

Comments

  • administrative errors usually dont have to be repaid,but you may need proof that you provided the information,tbh i think i`d know if i`d been overpaid anything for TWO months
    my advice would be keep the money and see what happens
  • fluffymovie
    fluffymovie Posts: 1,417 Forumite
    Part of the Furniture Combo Breaker
    If the error was local authority, an overpayment can be sought back if the claimant could have reasonably been aware they were being overpaid.

    I would suggest in your case that you would have known as you were working and receiving the same benefit as before and also assume you not had cancellation letters. As you had returned back to work, didn't you think you'd have to pay more ctax etc?

    These will be the la's arguments I suspect
    I currently manage a Housing Benefit service and have been working in Housing / council tax benefit (as was) since 2001.

    All views expressed in my posts are my own opinions and do not necessarily reflect those of my employer.
  • Thanks Woodbine,

    I was severely overdrawn before I started my job as the benefits I received didn't cover even a half of my full rent. As I had started work, I assumed the new balance increase was from my new salary and tax rebate, and the one month role over going in. It wasn't until I went into my Bank for a statement print out (the Bank had stopped posting them out) that we noticed what was going on. I don't like to owe anyone, but if an error on their part means I don't have to pay it back, then I'd like to know for sure before I write the cheque :)
  • McKneff
    McKneff Posts: 38,857 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Put it to one side and wait till they ask for it.
    Remember it is never statute barred so they can deduct it from future benefits if your unfortunate enough to have to claim
    them in the future.
    make the most of it, we are only here for the weekend.
    and we will never, ever return.
  • CIS
    CIS Posts: 12,260 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    The overpaid council tax benefit will be recovered by adjustment of your council tax account . You will receive an adjusted council tax demand notice from them.
    I no longer work in Council Tax Recovery but instead work as a specialist Council Tax paralegal assisting landlords and Council Tax payers with council tax disputes and valuation tribunals. My views are my own reading of the law and you should always check with the local authority in question.
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