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Tax credits overpayment

I received a letter from tax credits saying I never declared my esa to them on my tax credit award. I questioned this as my working tax stopped when I was in receipt of esa as I had rang up to let them know. Today I rang tax credits up to ask about my payments as the lady on Friday just said they will either change or stop. Today they informed me that my payments will drop from £160 a wk to £50 a wk. Is there any way I can ask for the money to be taken from my wages each month as I can't possibly survive on £ 50 a wk with 2 kids. I've tried searching online but unable to get anywhere. I'm in an absolute state it's not like I've got a secret stash of money I can just dip into.
Thanks any advice given I am truly grateful for.

Comments

  • marliepanda
    marliepanda Posts: 7,186 Forumite
    Kerryf1980 wrote: »
    I received a letter from tax credits saying I never declared my esa to them on my tax credit award. I questioned this as my working tax stopped when I was in receipt of esa as I had rang up to let them know. Today I rang tax credits up to ask about my payments as the lady on Friday just said they will either change or stop. Today they informed me that my payments will drop from £160 a wk to £50 a wk. Is there any way I can ask for the money to be taken from my wages each month as I can't possibly survive on £ 50 a wk with 2 kids. I've tried searching online but unable to get anywhere. I'm in an absolute state it's not like I've got a secret stash of money I can just dip into.
    Thanks any advice given I am truly grateful for.

    Maybe I am having a dense moment but what difference does it make whether it is taken from your pay or taken from your TC? Either way you don't get the money?
  • Darksparkle
    Darksparkle Posts: 5,465 Forumite
    edited 15 February 2016 at 9:20PM
    If you have already been overpaid earlier in the tax year then they cannot continue to pay you at a higher rate or that would just increase the overpayment.

    They look at how much youre entitled to for the tax year, how much you've already been paid and how much is left.

    Can you clarify what your circumstances are? You are in receipt of ESA but we're also receiving WTC?

    Did you maybe tell them you were on ESA income based but it was actually contributions based?
  • HappyMJ
    HappyMJ Posts: 21,115 Forumite
    10,000 Posts Combo Breaker
    Kerryf1980 wrote: »
    I received a letter from tax credits saying I never declared my esa to them on my tax credit award. I questioned this as my working tax stopped when I was in receipt of esa as I had rang up to let them know. Today I rang tax credits up to ask about my payments as the lady on Friday just said they will either change or stop. Today they informed me that my payments will drop from £160 a wk to £50 a wk. Is there any way I can ask for the money to be taken from my wages each month as I can't possibly survive on £ 50 a wk with 2 kids. I've tried searching online but unable to get anywhere. I'm in an absolute state it's not like I've got a secret stash of money I can just dip into.
    Thanks any advice given I am truly grateful for.

    You will get more than £50 a week. You will also have your wages and your ESA.

    Do you get housing benefit? That will increase now you get less in tax credits so let them know and they'll adjust that so your rent is paid.
    :footie:
    :p Regular savers earn 6% interest (HSBC, First Direct, M&S) :p Loans cost 2.9% per year (Nationwide) = FREE money. :p
  • I today have had the same thing. However mine was due to my working hour's reducing as my daughters disability requires me to look after her more. I have 5 children one disabled and have just reduced my working hours to less than 16 hours. This have prompted an over payment and they have reduced my payments to 50 per week. I rang them up to dispute it as direct gov states they are only allowed to take 10% of your claim and they are taking 60 of mine. The lady I spoke to said this wasn't correct and they can take what they want :-/ but she has made a referral to head office to reconsider what they are collecting back each week and I will hear in 7 days. I doubt this will happen but you never know :-)
  • prosaver
    prosaver Posts: 7,026 Forumite
    Part of the Furniture Combo Breaker
    They let me pay 12 pound a week direct debit, ask, worth a try
    “Life isn't about finding yourself. Life is about creating yourself.”
    ― George Bernard Shaw
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