Housing Benefit overpayment

DesperateDeb

I am just looking for a bit of advice. I was originally assessed for housing benefit in December 2010. I was recently sent a letter asking for my wage slips for the last two months, which I sent. My local council have now written to me to say that they have overpaid me £248 since April 2013.

I was getting £22.18 but now they are saying I should have been getting £9.73 but out of that they are taking away £9.23 to claim back the overpayment.

My wages haven't gone up a huge amount as I am on protected salary and due to take a drop in wages as i had to take a job a grade lower due to restructuring at work. And obviously my rent has risen since i moved in to the property.

I have appealed, but now I am only getting 50 pence towards my rent I am beginning to wonder how I am going to manage as I have already been hit by the bedroom tax as I have a 9 year old son and a 7 year old daughter.

Can they take so much back each week out of my benefit? Any advice/information would be appreciated

jacques_chirac

You say your wages have not gone up by a 'huge' amount, but have they increased at all? If so, have you notified the LA of this?

Caz3121

How long till your son is 10?
Are you in private or social housing?

Housing_Benefit_Officer

You are liable for the over payment.

Housing Benefit is means tested - every £1 increase in income your benefit reduces by 65p. And the over payment is recovered from your ongoing benefit.

Your wages are £19.92 per week or £1036 per year higher than previously declared.

The minimum standard deduction for an over payment is £10.80. As you are only entitled to £9.73 they take the lot bar 50p.

You are very very lucky they haven't asked for your P60s for 2011/12 and 2012/13 and re calculated your claim back to April 2011 - I know this is what I would do.

What have you got to appeal against? Your wages are higher than previously declared and you have been caught out. Just be grateful they haven't decided to go back to April 2011.

When your wages reduce your benefit will go up - but then when your tax credits go up your benefit will drop.

DesperateDeb

I am in social housing. Wages have gone up over the past three years in total about 10 pounds a week, but my rent has in turn gone up 15 pounds a week more. My son will be 10 in April, but if they are saying I owe over £400 then surely come April when I may be entitled to slightly more to cover the bedroom tax they will just take that off me. As it is going to take just short of a year to pay it back as I just don't have any savings to pay it off.

DesperateDeb

Just out of interest why do they not re-assess annually like they do with tax credits? it is a genuine question as up until December 2010 I have never claimed housing benefit as I lived in a mortgaged property with my now ex. And stupidly have not sent in P60's to the local council, which obviously I should have done.
The whole situation just drives me mad, just feels like I am penalised for working, whilst my neighbours don't and get their rent paid.

Sorry just noticed Housing Benefit Officer, you said that my salary must be £1036 higher than previously declared but this isn't true. I have gone back through all my old paperwork as I keep records of my outgoings/incomings and it hasn't gone up anything near that amount.

Housing_Benefit_Officer

DesperateDeb wrote: »

Just out of interest why do they not re-assess annually like they do with tax credits? it is a genuine question as up until December 2010 I have never claimed housing benefit as I lived in a mortgaged property with my now ex. And stupidly have not sent in P60's to the local council, which obviously I should have done.
The whole situation just drives me mad, just feels like I am penalised for working, whilst my neighbours don't and get their rent paid.

Sorry just noticed Housing Benefit Officer, you said that my salary must be £1036 higher than previously declared but this isn't true. I have gone back through all my old paperwork as I keep records of my outgoings/incomings and it hasn't gone up anything near that amount.

The previous Labour Government scrapped the annual reviews - previously Housing Benefit could only be awarded for 60 weeks. Instead the emphases was shifted onto the claimant to keep the Housing Benefit updated on financial circumstances - now someone might not be reviewed for 3 or 4 or 5 years or more. Random claims are selected for review - mostly those that score a high risk for fraud.

For your Housing Benefit to drop by the amount you have stated then your wages must be £19.92 per week higher than previously declared - for every extra £1 income your benefit is reduced by 65p.

Your wages are calculated using the gross figure minus tax and ni contributions and minus 50% of any pension contributions.

bloolagoon

DesperateDeb wrote: »

Just out of interest why do they not re-assess annually like they do with tax credits? it is a genuine question as up until December 2010 I have never claimed housing benefit as I lived in a mortgaged property with my now ex. And stupidly have not sent in P60's to the local council, which obviously I should have done.
The whole situation just drives me mad, just feels like I am penalised for working, whilst my neighbours don't and get their rent paid.

Sorry just noticed Housing Benefit Officer, you said that my salary must be £1036 higher than previously declared but this isn't true. I have gone back through all my old paperwork as I keep records of my outgoings/incomings and it hasn't gone up anything near that amount.

WTC is included as salary

BigAunty

I can't assist with the HB overpayment queries but I heartily recommend that you download the MSE budget planner and work through the website to identify how to increase income and decrease expenses to try and mitigate the effect of static wages with increases in living costs.

There is excellent advice on both the general site and on the forums so you can identify how to be ultra thrifty and frugal - cheapest recipes, lowest cost food shopping, cheapest telecoms/broadband/energy tariffs and so on. The 'old style' forum is where the frugal people live but there is also an Up Your Income board.

Double check that you are claiming every benefit you are due by using the Turn2us online benefit checker.

Morlock

Are you receiving child maintenance? Any contributions from your children's father will be in addition to your wage and benefits.

Billie-S

Ahhhh, one of the pitfalls of claiming part housing benefit. If your wage goes up a bit over a few months, like with a bit of overtime, a few bank hols, cost of living rise etc, and you don't inform them of the increase (and many DON'T, because it's often not that much more; ) when you are assessed and they look at your P60, you can often find yourself overpaid several 100s of pounds.

So they reduce your HB and then take a tenner a week off the lower amount as well, to recover what's owed: leaving you stuffed, especially if your wage has dropped a bit since.

Some people may ask 'why didn't you save while you were getting the slightly higher income but the same amount of housing benefit?' Good question, and a good point, but in reality, it doesn't happen.

As you quite rightly say Deb, the rent goes up, leccie and gas goes up, council tax goes up, food goes up, and that extra £60-80 or so a month you got the last 3-4 months, went on general living. You don't find yourself rolling in it, it just goes on general living.

It makes you wonder if it's worth claiming it, if it's only a small amount, as it can be more trouble than it's worth if you get an overpayment,. As someone said though, at least it's only £248. I have known folk have overpayments running into a few thousand.