Overpayment of tax credits....affect on housing benefit?

xxkelly888

Hi all,

I hope someone can help.

Annual income of £28,000, single claim and three children.

I get tax credits and housing benefit.

I have been overpaid £3,000 tax credits last year but as this money was taken into account for my housing benefit last year then I assume I have been underpaid housing benefit for the whole year. Is thee anything that can be done about this? Nearly all my wages are discounted for housing benefit purposes as I have childcare costs of £320 a week but obviously my (overpaid) tax credits were counted as income and I now need to pay this back.

Hope I am explaining properly.

fluffymovie

Hi there

We dont recalculate your claim going back as you have suggested - we use the money that you received at the time.

However, your future award of TC should be reduced to take into account the overpayment and so future payments should be lower so you will receive more HB as a result.

Hope that makes sense

fullmoon_2

fluffymovie wrote: »

Hi there

We dont recalculate your claim going back as you have suggested - we use the money that you received at the time.

However, your future award of TC should be reduced to take into account the overpayment and so future payments should be lower so you will receive more HB as a result.

Hope that makes sense

What will happen in the above circumstances if claimant savings goes up £16000 and not entitled to get LHA anymore? Less tax credit for previous years overpayment but what about LHA underpayment?

Housing_Benefit_Officer

fullmoon wrote: »

What will happen in the above circumstances if claimant savings goes up £16000 and not entitled to get LHA anymore? Less tax credit for previous years overpayment but what about LHA underpayment?

If your capital goes above £16k you won't qualify for any Housing Benefit.

Doesn't matter if your Tax Credit gets reduced as you are disqualified for having more than £16k capital.

fluffymovie

As I say, we don't look backwards taking into account what tax credits you would've had if not overpaid so there would be no LHA underpayment

xxkelly888

Just to clarify then please, tax credits are taking payments back at £63 per week, so housin benefit will now be assessed on my award minus the £63 recovery which will equal out the overpayment?

fluffymovie

We will use the figures that you receive each week (normally on pages 5 & 6 of your award notice) so if that shows a lower figure because they are taking back the o/p, then yes!