HB overpayment - council's fault

1226

Hello everybody.

I recently learned my HB have been overpaid because the council have calculate tax credits on fourweekly basis instead of weekly basis. They received the award letters originally from DWP and it is really just a mistake from the council's side but nevertheless they are claiming the overpayment.

How can I challenge this as I don't think it was reasonable for me to know there was an overpayment as there was an "other income" and "earnings" stated on the award letter which I of course assumed to be correct. The total amount didn't materially deviate from the what I got paid so for all I know there could be some rules that would exempt certain parts of the tax credits and/or my income as there was also a section saying "disregarded income".

I recently submitted a change in circumstance as my income increased and it was during this time the council spotted their mistake, despite me being paid the HB for months.

Thanks

Housing_Benefit_Officer

1226 wrote: »

Hello everybody.

I recently learned my HB have been overpaid because the council have calculate tax credits on fourweekly basis instead of weekly basis. They received the award letters originally from DWP and it is really just a mistake from the council's side but nevertheless they are claiming the overpayment.

How can I challenge this as I don't think it was reasonable for me to know there was an overpayment as there was an "other income" and "earnings" stated on the award letter which I of course assumed to be correct. The total amount didn't materially deviate from the what I got paid so for all I know there could be some rules that would exempt certain parts of the tax credits and/or my income as there was also a section saying "disregarded income".

I recently submitted a change in circumstance as my income increased and it was during this time the council spotted their mistake, despite me being paid the HB for months.

Thanks

You would have known exactly what your income was and what your Tax Credits were so it would have been up to you to check your benefit notifications - which you did - but failed to query the obvious mistake. So yes you will need to pay it back. You can appeal but I doubt it will get anywhere.

1226

It was not entirely clear from the benefit award that I was being overpaid which means I couldn't be reasonable to expect I was in fact being overpaid. Since they already took the tax credits into effect who I am to know if the full amount is taken into account or not? There could've been some deductions due to a child or other circumstance, which applicant knows all the benefits rules? I will definitely appeal this to a tribunal as it is an official error by the council when they count four-weekly instead of weekly, how is that even possible is beyond me when they have all information at hand, almost like they do it deliberately.

tomtom256

1226 wrote: »

It was not entirely clear from the benefit award that I was being overpaid which means I couldn't be reasonable to expect I was in fact being overpaid. Since they already took the tax credits into effect who I am to know if the full amount is taken into account or not? There could've been some deductions due to a child or other circumstance, which applicant knows all the benefits rules? I will definitely appeal this to a tribunal as it is an official error by the council when they count four-weekly instead of weekly, how is that even possible is beyond me when they have all information at hand, almost like they do it deliberately.

Of course you could, you just assumed it was correct as per your original post.

As stated you know exactly what your income is/was so why didn't you check and query it?

As for deductions award letters generally say so much disregarded in brackets.

tomtontom

Had they made the opposite mistake, counted the four weekly figure as part of your weekly income, would you have blindly accepted it? After all, you don't know all the benefit rules ...

fluffymovie

As stated, cases of LA error can be recovered if we believe that you knew you were being overpaid.

You seem to know this as you have stated that you didn't know.

On all letters, it will show a breakdown of income and disregards. I presume as it was input 4 weekly, the disregard didn't equate to the amount of Tax Credits so I am confused how you could argue that you thought that it might be included here?

End of the day, you have had an interest free loan that you are being asked to repay. I would refuse a recon and take the case to tribunal if you were one of the claimants at my LA and I hope yours does too. This is tax payers money after all and why should you keep it when you should never have had it?