Benefits overpayment due to decreas in Tax Credits ?

Crisp_£_note

Hi

Hoping someone can help me please as am a little miffed.

I suddenly had an unexpected letter from the council telling me I have a housing and council tax benefit overpayments.

They assessed our benefit entitlement and calculated that from 1st August 2011 to 4th September 2011 we were overpaid £206.04 Housing Benefit. Because of a change to our Tax Credits.

They have also calculated that from 1st August 2011 to 11 September 2011 we were overpaid £75.34 Council Tax Benefit for the same reason (change in Tax Credits).

They will seek to recover the money from me by issuing a revised council tax bill.

As the council Tax Benefit has been credited to our account for the entire year an adjustment will also be made for the period 12th September 2011 to 31st March 2012 amounting to £361.29

Ok here are my issues ~

1 - My hubby's Tax Credits have gone down (we submitted our anual review in August). Shouldn't that work to our advantage with benefits? How would they know the change of circumstances as I haven't told them (I was just about to inform them for a rent increase).

2 - Housing benefit is paid direct to our landlord so why can't they recover the overpayment from them?! Their taking money off me when I wasn't in receipt of it in the first place. :mad:

3 - Their new demand for Council Tax has rocketed from what I have been currently paying at £66. a month and has been put up to £192. a month for the next 3 months (Oct - Jan). :eek:

4 - Their letter is dated 9th September and I didn't receive it until 16th. Their only a few towns away why have they been sitting on it?! More of a moan this one than in need of a reply.

I have been sent an Income & Expenditure form for my hubby to complete as he is Self Employed and they say to return it within 14 days to make sure any further benefit is calculated correctly.


We are just about managing to keep the finances ballanced at the moment thanks to a DRO and hubby repaying token payments to his CC debts. We would go back into Debt if we have to find the extra money for the council but of course its better than going to prison for not paying at all I suppose.

Sorry to seem dull but am more than a little miffed but it doesn't add up to me that if our income goes down from the Tax Credits de-crease how they can decrease our other benefits. Doesn't seem right way round to me.

Thanks in advance.

rogerblack

Crisp_£_note wrote: »

2 - Housing benefit is paid direct to our landlord so why can't they recover the overpayment from them?! Their taking money off me when I wasn't in receipt of it in the first place. :mad:

Sorry to seem dull but am more than a little miffed but it doesn't add up to me that if our income goes down from the Tax Credits de-crease how they can decrease our other benefits. Doesn't seem right way round to me.

You got less tax credits because you were earning more.
Hence, you also, for the same reason get less benefit - as you'd underreported your earnings.
If they did recover from the landlord - the landlord would be wanting the difference anyway.
Housing benefit does not cover all of the housing rent costs anymore in many cases.

clareabella666

we have had a similar letter last month, this was due to us getting working tax credit changing ( going up).

we had a rent overpayment of £45 which has been added to our rent account with the housing association, we are just paying and extra £5 a week on our rent until thats gone.

Biggest shock was our council tax, we were overpaid by £400 something. Meaning our council tax has increased from £17 pm to £85 ( we also have some arrears from when we first moved in) so we intend on paying £100 pm from now on although its going to be a huge struggle.

Have you tried speaking to the council and seeing if you can come to an alternative payment plan for the over payment? I have found that our council are quite welcoming to offers provided they are reasonable.

Crisp_£_note

Thanks to both of you for explaining it. It makes a ot more sense now feel a bit silly I didnt see it so obvious in the first place but sometimes other peoples perspectives can make a difference thats why I posted it here and asked for help.

Benefits_Bod

On overpayments, the following will hopefully help.

The legislation for HB/CTB overpayments is different compared to the legislation for Tax Credits and other social security benefits. For HB/CTB, the starting point is that all overpayments are recoverable UNLESS:

1) the overpayment arose as a result of an official error (by any of the LA / DWP / HMRC); AND either

2)a) the clmt (or payee) didn't contribute to the error that caused the overpayment; or
2)b) the clmt (or payee) couldn't reasonably have been expected to realise there was an overpayment at either the time of any notice relating to the payment or at the time of the payment(s).

Although payment of HB was made to the LL, the overpayment cannot be recovered from the LL unless the LL either misrepresented, or failed to disclose, a material fact. If a landlord doesn't know of a material fact, s/he cannot be regarded as failing to disclose it.

Separately, on the issue of only 14 days being given to provide further information in respect of HB/CTB, that time limit is simply wrong. The minimum time limit that must be allowed in law is one calendar month from the date evidence/info is first requested - the LA cannot lawfully allow less time. Also, LAs cannot operate a blanket policy of only allowing the minimum. There is one exception to the one month time limit but, based on the info given, it doesn't appear to be relevant.

fluffymovie

Just to say that since 4 July a new system called ATLAS has been introduced where the local authority are advised directly of a change in tax credits. From November this will roll out to other benefits like jsa.