council tax and HB help please

The_fog_has_lifted

I am a full time nursing student so I receive my student bursary and £90 per week housing benefit and a reduction to my council tax to the single persons occupancy.
DH does not work so he get some council tax benefit and is also included on my housing benefit claim.
in January our housing benefit was stopped as Tax credits were re assessing our claim and they stopped our housing benefit until a new tax credit award was issued to clarify our weekly tax credit payment.
fast forward to april and tax credits have finally sorted our tax credits and back dated it to January, I informed housing benefit and they said they could see my tax credits award on their system again and would correct our HB award and backdate the money to January.
today I phoned our housing officer to clarify it was all sorted and they told me that I still owed almost £800 in rent, I was shocked as the back payment should have cleared all of the arrears.
upon phoning the council they stated that they have now realised that our original HB award was calculated wrong and we were actually only entitled to £60 housing benefit per week from September 2012 and that not only do we now owe rent to our landlord but we have a housing benefit overpayment of £2160 plus a council tax bill of almost £2000 as hubby was not entitled to the reduction.
I am absolutely stunned, I gave them all the paperwork as requested and they worked it out wrong, now we owe all this money.
I just don't know what to do, can I in anyway appeal this, we just don't have this kind of money.
any advice on how I can deal with this will be greatly appreciated as I feel its totally unfair for us to have to repay ALL of it when its not our fault/mistake.
thanks guys
(ps sorry for the bad grammer/dyslexic typing).

Upsidedown_Bear

It'd be worth posting this on the Benefits & Tax Credits board

http://forums.moneysavingexpert.com/forumdisplay.php?s=&daysprune=&f=139