Overpayment issue

Tyfelt

Last year my wife did a few months part-time work at Tesco which I neglected (not purposefully) to update the council on. My earnings have not changed. When I realised the oversight I informed the council and sent all her payslips. The council wrote back to say that because my wife had stared work we no longer qualified for housing benefit and that we would have to repay those months. Looking at the figures, we would have earned more if my wife had not started work and had just stayed on housing benefit. I certainly can't afford to pay back the overpayment in a lump sum. Is it worth appealing this decision? I assume not as it appears to be a case of "computer says no" and not common sense. If we have to clear the entire overpayment backlog then we would both have to leave our jobs and claim full unemployment benefits from the council just to repay the same council.

marliepanda

Well if you left your jobs you would not get unemployment benefits for six months.

You cannot appeal because you didn't tell them. 'We'd have been better off on benefits' is nowhere near a valid reason to appeal. You made the mistake so have no grounds to appeal.

They will however no doubt set up an affordable repayment schedule.

pmlindyloo

Tyfelt wrote: »

Last year my wife did a few months part-time work at Tesco which I neglected (not purposefully) to update the council on. My earnings have not changed. When I realised the oversight I informed the council and sent all her payslips. The council wrote back to say that because my wife had stared work we no longer qualified for housing benefit and that we would have to repay those months. Looking at the figures, we would have earned more if my wife had not started work and had just stayed on housing benefit. I certainly can't afford to pay back the overpayment in a lump sum. Is it worth appealing this decision? I assume not as it appears to be a case of "computer says no" and not common sense. If we have to clear the entire overpayment backlog then we would both have to leave our jobs and claim full unemployment benefits from the council just to repay the same council.

So you have to pay back the HB for the months that your wife was working because it took you over the threshold? Does that mean you are back to claiming HB now?

If so then they may make an arrangement with you to have it reduced from your ongoing HB payments. Ask them.

Caz3121

Tyfelt wrote: »

If we have to clear the entire overpayment backlog then we would both have to leave our jobs and claim full unemployment benefits from the council just to repay the same council.

Of course you will be due the money back but as above you can agree a repayment plan. They will look at income and outgoings and assess what you can afford to pay.

If you are both currently working you will be in a far better position to pay back than if you leave your jobs. As above you will likely be sanctioned from JSA for up to 26 weeks.
They are likely to just reduce your current housing benefit payment to recoup the money so with no income you are going to quickly fall into arrears.
The debt will not go away (unless you are considering bankruptcy)

Tyfelt

marliepanda wrote: »

Well if you left your jobs you would not get unemployment benefits for six months.

You cannot appeal because you didn't tell them. 'We'd have been better off on benefits' is nowhere near a valid reason to appeal. You made the mistake so have no grounds to appeal.

They will however no doubt set up an affordable repayment schedule.

I completely agree. I'm not looking to blame anyone other than myself. I should have researched beforehand to realise that we should have remained on benefits and not started work. Lesson learned! Thank you for the answering the question.

Housing_Benefit_Officer

Every £1 of extra wages your household received you lose 65 pence Housing Benefit. You have nothing to appeal against. Make an arrangement to pay the overpayment back at a monthly amount. You are lucky you are not being prosecuted for fraud.

dippy3103

HBO is right it's s an offence to fail to report promptly a change in circumstances. If it's only a few months & you self disclosed that's probably why they are not taking it any further. Though if the calculation has only just been done you may yet still be interviewed by the fraud team.

As an aside, it not a case of computer says no & not using sense. The amount you are entitled to is set out by regulation- they can't just ignore the rules!

As regards repayment, if you are off benefits make a reasonable repayment offer and they will probably accept it. If you go back on benefits they will deduct it from your benefits you will be even worse off.


You made a mistake & you fessed up - fair play.