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Housing benefit overpayment

Hi,

I'm wondering if anyone could please give me some advice. I was very unwell for a time and claimed ESA and housing benefit. When I returned to work I correctly informed the job centre and filled the forms they require declaring this. I then recieved an appointment letter for ESA reassessment from the DWP so I called them directly to confirm I had started work and was told I would receive nothing further. However I realised I was still being paid benefits so I called the DWP to tell them again I was now working and please stop paying me. They didn't, so I called again to tell them I was still being paid benefits. (I also spent several lunch hours on hold to them but didn't manage to get through to anyone, but anyhow...). They didn't stop the payments so I called again!

This time they finally did stop paying me. I had recieved about 2 months overpayment but this point. The person I spoke to on the phone told me that she could see that I had attended a Job Centre appointment, but that for some reason the forms hadn't come through to them. She also told me that the DWP has more than one internal system and that my messages hadn't been passed on between them. Finally she confirmed their was nothing else I needed to do and did not need to repay the overpayment. I was a bit amazed by this, but checked online that this is correct. If the overpayment is an 'administrative error' and the DWP have been correctly informed, it is 'non-recoverable'.

However, about a year later the local council has sent me a letter asking for repayment of housing benefit. I explained the above to them, however they have not even acknowledged my response and are threatening to take me to court. I no longer have this money as I considered the matter closed long ago.

It seems the Council thinks that I should have directly informed them that I was now working. However my housing benefit had been stopped a few times during my time claiming ESA and not once was the local authority directly informed. The DWP was always responsible for this. I am sure I did what was required if me. Can the Local Authority overturn the DWP in this way? Any advice would be appreciated. Thank you.
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Comments

  • [Deleted User]
    [Deleted User] Posts: 4,176 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Photogenic
    NButler wrote: »
    Hi,

    I'm wondering if anyone could please give me some advice. I was very unwell for a time and claimed ESA and housing benefit. When I returned to work I correctly informed the job centre and filled the forms they require declaring this. I then recieved an appointment letter for ESA reassessment from the DWP so I called them directly to confirm I had started work and was told I would receive nothing further. However I realised I was still being paid benefits so I called the DWP to tell them again I was now working and please stop paying me. They didn't, so I called again to tell them I was still being paid benefits. (I also spent several lunch hours on hold to them but didn't manage to get through to anyone, but anyhow...). They didn't stop the payments so I called again!

    This time they finally did stop paying me. I had recieved about 2 months overpayment but this point. The person I spoke to on the phone told me that she could see that I had attended a Job Centre appointment, but that for some reason the forms hadn't come through to them. She also told me that the DWP has more than one internal system and that my messages hadn't been passed on between them. Finally she confirmed their was nothing else I needed to do and did not need to repay the overpayment. I was a bit amazed by this, but checked online that this is correct. If the overpayment is an 'administrative error' and the DWP have been correctly informed, it is 'non-recoverable'.

    However, about a year later the local council has sent me a letter asking for repayment of housing benefit. I explained the above to them, however they have not even acknowledged my response and are threatening to take me to court. I no longer have this money as I considered the matter closed long ago.

    It seems the Council thinks that I should have directly informed them that I was now working. However my housing benefit had been stopped a few times during my time claiming ESA and not once was the local authority directly informed. The DWP was always responsible for this. I am sure I did what was required if me. Can the Local Authority overturn the DWP in this way? Any advice would be appreciated. Thank you.


    Of course you should have directly informed them. The DWP is not the local council it's your responsibility to inform them nobody else's.

    Why didn't you put the money to one side knowing you were not entitled to it. No need to spend it.
  • NButler
    NButler Posts: 22 Forumite
    As I mentioned, they were not told previously but the benefit was stopped - both in the past and this time - by the DWP. The advice I was given, and the information on the governements
    own website is also that it was not repayable. Thanks though!
  • calcotti
    calcotti Posts: 15,696 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    I can understand why you might think this as your HB had previously been stopped when changes to your ESA occurred. This often happens because local authority can see changes in DWP benefits and will suspend the HB until they are clear about ongoing entitlement.

    However the law requires you to inform each different benefit agency (indeed even different benefit teams within the DWP) separately. You will therefore be required to pay back any overpayment and if you cannot pay it in one go will have to agree a repayment plan.
    Information I post is for England unless otherwise stated. Some rules may be different in other parts of UK.
  • NButler
    NButler Posts: 22 Forumite
    calcotti wrote: »
    I can understand why you might think this as your HB had previously been stopped when changes to your ESA occurred. This often happens because local authority can see changes in DWP benefits and will suspend the HB until they are clear about ongoing entitlement.

    However the law requires you to inform each different benefit agency (indeed even different benefit teams within the DWP) separately. You will therefore be required to pay back any overpayment and if you cannot pay it in one go will have to agree a repayment plan.

    Thanks. Do you have a link to the law which clearly states that as the information I have read is ambiguous at best. After all, if the DWP had done their job, the Local Authority would have stopped the payments (as they did in the end without being directly informed) and no one would be asking me to tell the local authority myself. This is still administrative error which lead to overpayment.
  • poppy12345
    poppy12345 Posts: 18,977 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    It's not an administrative error, it's your error because you didn't inform your local council when you started working.
  • poppy12345
    poppy12345 Posts: 18,977 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    When your housing benefit continued why didn't you ring your local council to tell them you're still receiving it?
  • NButler
    NButler Posts: 22 Forumite
    Poppy, it would be appreciated if you read the thread. The snswer to your question is there.
  • calcotti
    calcotti Posts: 15,696 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    edited 1 May 2019 at 7:50AM
    General guidance https://www.gov.uk/report-benefits-change-circumstances
    How to report changes
    Who you tell depends on which benefits you get. You’ll need to report your change to more than one organisation if you get more than one benefit.

    I can’t reference specific legislation but in effect each benefit requires you to otify the relevant organisation or department of a change of circumstances. There has been case law that has confirmed that telling one part of the DWP cannot be relied upon by a claimant as informing even other parts of the DWP. Each benefit team is supposed to be notified separately.

    The housing benefit team did not make an error because they were not aware of your changes of circumstances. When they became aware they stopped the benefit. DWP are not required to tell HB of a change, HB only became aware because they have access to DWP information.
    Information I post is for England unless otherwise stated. Some rules may be different in other parts of UK.
  • [Deleted User]
    [Deleted User] Posts: 4,176 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Photogenic
    NButler wrote: »
    Thanks. Do you have a link to the law which clearly states that as the information I have read is ambiguous at best. After all, if the DWP had done their job, the Local Authority would have stopped the payments (as they did in the end without being directly informed) and no one would be asking me to tell the local authority myself. This is still administrative error which lead to overpayment.

    It is not the responsibility of the DWP to liaise with the council on your behalf. It is your responsibility to inform each department separately, this is not an administrative error, it's yours.
  • NButler
    NButler Posts: 22 Forumite
    calcotti wrote: »
    General guidance https://www.gov.uk/report-benefits-change-circumstances
    How to report changes
    Who you tell depends on which benefits you get. You’ll need to report your change to more than one organisation if you get more than one benefit.

    I can’t reference specific legislation but in effect each benefit requires you to otify the relevant organisation or department of a change of circumstances. There has been case law that has confirmed that telling one part of the DWP cannot be relied upon by a claimant as informing even other parts of the DWP. Each benefit team is supposed to be notified separately.

    The housing benefit team did not make an error because they were not aware of your changes of circumstances. When they became aware they stopped the benefit. DWP are not required to tell HB of a change, HB only became aware because they have access to DWP information.

    Well, if that's correct its it's all a bit backward as there's no need to tell everyone separately when the JC and DWP do their job as expected. To clarify, when I spoke to the DWP I called the number on an ESA letter I had recieved. I spoke with the correct department, just a different part of it apparently, which I couldn't have been expected to know.
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