Change in benefits has left me oweing the system money :cry:

G8311374

So, Since being put into the support grout with ESA following an appeal a couple of months ago, I immediately informed my HB office. It took them two months to come back to me and to tell them that I now owe them £400 in overpaid HB and £100 in overpaid CTB, how they can make these overpayments I dont know because they calculate every month and send you the calculation, so they know exactly what I have got coming in and out and how do they expect me to pay this overpayment? I'm in tears thinking about it as I am now in debt again having spent years getting out of debt and then finally using my compensation from my medical discharge to finally pay of my debts, and I'm frightened. Ive been so careful and now this, I just dont know what to do.

G8311374

well if its their fault do I have to pay it back? what are my rights with regards to paying it back?

Dunroamin

helenbolland wrote: »

well if its their fault do I have to pay it back? what are my rights with regards to paying it back?

How do you know that it's their fault?

You can arrange to make affordable repayments over a period of time, particularly as such small amounts are involved.

mysterywoman10

helenbolland wrote: »

So, Since being put into the support grout with ESA following an appeal a couple of months ago, I immediately informed my HB office. It took them two months to come back to me and to tell them that I now owe them £400 in overpaid HB and £100 in overpaid CTB, how they can make these overpayments I dont know because they calculate every month and send you the calculation, so they know exactly what I have got coming in and out and how do they expect me to pay this overpayment? I'm in tears thinking about it as I am now in debt again having spent years getting out of debt and then finally using my compensation from my medical discharge to finally pay of my debts, and I'm frightened. Ive been so careful and now this, I just dont know what to do.

Try not to worry too much, tomorrow you should be able to phone them although with everything going on with Housing Benefit it might not be easy to get through. Is there an email address or anything on the letter? The best thing to do is to email them and explain what you have said here ask them to explain why they think you have been overpaid.

Yes you can make a request to have it waived if it appears it is their fault, if not I'm sure you can sort it out so you can pay a small amount off each week. I'm sure £400 seems a lot when you haven't got it. But it will get sorted.

Horseunderwater

helenbolland wrote: »

well if its their fault do I have to pay it back? what are my rights with regards to paying it back?

When you say you were put into the Support group on appeal from 2 months back I assume that you were being paid the WRAG rate during this time and that you had a large back payment from original decision to the date you won the appeal. That money should have been set aside until you had sorted out the housing benefit situation as you are on income related benefits(means tested). If you did not put it aside then that is your fault as you should have known or been aware that there would be an adjustment to sort out. So you will now have to pay it back bit by bit with an arrangement or in a lump sum.

Robbie64

Horseunderwater wrote: »

When you say you were put into the Support group on appeal from 2 months back I assume that you were being paid the WRAG rate during this time and that you had a large back payment from original decision to the date you won the appeal. That money should have been set aside until you had sorted out the housing benefit situation as you are on income related benefits(means tested). If you did not put it aside then that is your fault as you should have known or been aware that there would be an adjustment to sort out. So you will now have to pay it back bit by bit with an arrangement or in a lump sum.

I can't understand how, in the circumstances you describe, there could be an overpayment.

If the person is receiving Income Related ESA then for Housing Benefit and Council Tax Benefit purposes it would make no difference what ESA component was in payment as they are passported onto HB and CTB. Arrears of ESA for being in the Support Group (ie the difference between WRAG and Support, £5.90 per week) would be paid to the claimant without any effect on HB and CTB. Similarly if the person was on assessment rate ESA and moved to the Support Group on appeal then full arrears of £34.05 per week would be due to the claimant. There is no HB and CTB overpayment.

If the person is in receipt of contributory ESA at either the assessment rate or with a work related activity component then the calculation of HB and CTB will reflect this - if WRAG is in payment then the HB and CTB calculations include an amount for the work related activity component. If on appeal the person moves into the Support group then HB and CTB would be recalculated to include an amount for the Support Component.

If being awarded the Support Group component led to an overpayment of HB and CTB then the person would never be any better off by being in the Support group.

Horseunderwater

You're correct re ESA IR - but do the council benefit department know if OP is getting the IR ESA, could that be where the error is?

Robbie64

Horseunderwater wrote: »

You're correct re ESA IR - but do the council benefit department know if OP is getting the IR ESA, could that be where the error is?

It's possible though the DWP should have informed them of this. The OP will need to contact the HB section to query the overpayment letter, but even if the person isn't on income related ESA but rather contributions based ESA the HB section should recalculate the HB and CTB entitlement to include an amount for the Support component in the assessment of both benefits. The effect of this would be that there should no overpayment and the person keeps the arrears of the Support group component awarded following the appeal.

G8311374

It feels such a mess I'm too frightened to phone the HB office at the moment, I did write to them to tell them I was being out in the support group so that if there was a change they could sort it ASAP.

Horseunderwater

G8311374 wrote: »

It feels such a mess I'm too frightened to phone the HB office at the moment, I did write to them to tell them I was being out in the support group so that if there was a change they could sort it ASAP.

Never be frightened by them's local gov't employ. Did you tell them that you are Income related ESA at all ever? That is the crucial part. If not and you have some way to get to the HB dept - could you go there and give them the evidence. They should be able to take a copy there and then and re- do your award correctly this time.