Housing Benefit Overpayment - how to deal with it when on a DMP

acfoster29

Hi, I hope someone might be able to offer any advice :(

Today i received a letter from council saying I owed them £1050 in overpaid housing benefit. This has arisen because I neglected to tell them I had a wage rises in the last twelve months.

I informed them of my latest wage rise at the beginning of the month and whilst talking with the advisor I had a sinking feeling that I didn't tell them of earlier ones. At the time I received the rises, I was (and still undertaking medical tests for neurological problems which may be pointing to MS). Although this may be seen as an excuse, I genuinely did forget to tell them.

Anyway, my question is how to proceed now. I am on a DMP with CCCS - do I ring them first and ask for a reduction/skipping my monthly payment to pay the benefit back, or ring the council and ask for a repayment plan...?

Thank you in advance for any help xxx

Depth_Charge

acfoster29 wrote: »

Hi, I hope someone might be able to offer any advice :(

Today i received a letter from council saying I owed them £1050 in overpaid housing benefit. This has arisen because I neglected to tell them I had a wage rises in the last twelve months.

I informed them of my latest wage rise at the beginning of the month and whilst talking with the advisor I had a sinking feeling that I didn't tell them of earlier ones. At the time I received the rises, I was (and still undertaking medical tests for neurological problems which may be pointing to MS). Although this may be seen as an excuse, I genuinely did forget to tell them.

Anyway, my question is how to proceed now. I am on a DMP with CCCS - do I ring them first and ask for a reduction/skipping my monthly payment to pay the benefit back, or ring the council and ask for a repayment plan...?

Thank you in advance for any help xxx

Hi

Just a guide from me, if in doubt best to get full advice from CCCS

If you are still in receipt of part housing benefit then the council can deduct payments direct from ongoing entitlement meaning you would have to make up the difference in payments on your rent or face running into actual rent arrears.

This basically means that the over payment is a priority debt of a kind if deductions are made this way. You may be able to negotiate payments or the level of deductions with the relevant council department / people but they would likely request a Financial Statement which in your case would show the DMP arrangement with CCCS - the council may then not wish to be second class in the pecking order of such an arrangement if they could get more in a direct deduction if you get my drift.

If you are not in receipt of any housing benefit and no judgement has been obtained then the over payment is classed as a non-priority debt.

Either of the above would affect your calculated disposable income as far as the CCCS arrangement is concerned I would think.

What CCCS would say is up to them, I cant see where you could be deemed as taking on further credit in this situation and these things do happen all the time, people do forget, dont understand and make mistakes, but like I say I cant speak for CCCS.

Useful links below maybe, that go into detail on benefit over payments and might shine further light on this, if you have a couple of hours reading time to spare:)

http://www.dwp.gov.uk/docs/op-guide-amd2.pdf

http://www.dwp.gov.uk/local-authorit...ractice-guide/

http://www.dwp.gov.uk/publications/s...n-entitlement/