Council tax benefit overpayment, please help?

Jamie8713

I received a letter on Friday dated 10th January stating that my council tax benefit had been reviewed.

It states that the 'old' amount I was receiving was £19.47, however I am now to receive the lesser sum of £14.60 per week.

As a result of the revised decision there has apparently been an overpayment, which amounts to nearly £250.

They state that the reason for the overpayment is because I receive 'Single Persons Discount in respect of your Council Tax'.

I will be calling them ASAP on Monday, but I'm having some difficultly understanding this letter. Does it mean that they were unaware that I was receiving 'Single Person's Discount', and so paid me the full amount of council tax. Or does it mean, they believe I am not entitled to 'Single Person's Discount'?

I live on my own with two children, so I'm not sure exactly what this is about.

Is there anyway to avoid paying this large sum? I provided them with all the correct documentation at the time of applying (April last year). I don't understand why it is my fault, when there is obviously some error on their behalf!

coffeelover65

Its more thank likely whats referred to as a "technical overpayment" which although you've been overpaid, its due to a technicality of the system, although each authority formats their automated notifications differently and will be up to them to decide how clearly they explain this.

For example, the council were applying a full annual ctax charge of £400, and you received £400 ctax benefit for the year, and then found you should have single persons discount so this is awarded, they'll reduce your bill by 25%.

This means that your correct ctax charge for the year is only £300, as ctax benefit for the year has been paid to the amount of £400, you have technically been overpaid £100. All that happens is the overpayment is recovered directly from your ctax account and you don't repay anything.

Your revised council tax bill will show this once you receive it.

CIS

I would agree with above, presuming you qualified for full council tax benefit then all that happens is the one reduction is being replaced with another.

It can be confusing when you get the paperwork however when the system changes from April it should make things a bit less confusing for people.

Jamie8713

coffeelover65 wrote: »

Its more thank likely whats referred to as a "technical overpayment" which although you've been overpaid, its due to a technicality of the system, although each authority formats their automated notifications differently and will be up to them to decide how clearly they explain this.

For example, the council were applying a full annual ctax charge of £400, and you received £400 ctax benefit for the year, and then found you should have single persons discount so this is awarded, they'll reduce your bill by 25%.

This means that your correct ctax charge for the year is only £300, as ctax benefit for the year has been paid to the amount of £400, you have technically been overpaid £100. All that happens is the overpayment is recovered directly from your ctax account and you don't repay anything.

Your revised council tax bill will show this once you receive it.

Ok, thank you both for your replies. This makes sense. I guess this is why you shouldn't start over-analysing letters and panicking at 2am! Was never any good at maths

CIS

The confusing issue is that you'll get usually get a benefit award notice which shows that your benefit has been removed.

You'll then get a separate council tax demand notice which will show the benefit being removed and the discount being added on.