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How should underpayment be repayed?

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How should underpayment be repayed?

edited 30 November -1 at 1:00AM in Benefits & Tax Credits
7 replies 525 views
daKlonedaKlone Forumite
137 posts
Eighth Anniversary 100 Posts Combo Breaker
edited 30 November -1 at 1:00AM in Benefits & Tax Credits
I'm in shock.

My daughter and her partner claim tax credits but last week the £300 she was expecting did not arrive.

After phoning three different times and speaking to six different people, my daughter finally found out that there had been a mistake made by them over some information from 6 months ago. The manager she spoke to said that her claim was re-instated, it was entirely their fault, and she should receive the missing money either today (Friday) or she'd get double-payment next week.

On that basis, she borrowed the money from me in order to avoid any missed direct debit fees.

Obviously no money arrived today, so she rang them again. Again, speaking to three different people and finally a manager told her that she would not get the money in one go, but that they would pay her £6 a week extra over the next tax year to make up the money up.

Can they do that? :mad:

To be honest, I'm furious and so is she. She's put in a formal complaint, for what good that will do.

Everything posted above is my personal opinion. It may be right, it may be wrong, but it is mine.


Replies

  • MrsnMrsn Forumite
    864 posts
    500 Posts Name Dropper First Anniversary
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    I know overpayments can be taken like that but I’m sorry I really don’t know about underpayments. I just didn’t want to read and run, I’m so sorry that your daughter and yourself have been put under this financial stress. There are tons of knowledgeable people on this forum that I’m sure will be able to offer you better advice
  • poppy12345poppy12345 Forumite
    8.7K posts
    Fifth Anniversary 1,000 Posts Name Dropper
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    Yes, it's perfectly normal for underpayments to be made as extra payments each week.
  • daKlonedaKlone Forumite
    137 posts
    Eighth Anniversary 100 Posts Combo Breaker
    Thanks for the replies.

    Poppy, do you know if there is any way to appeal and get a lump sum?

    It seems that this policy just drives people straight into the arms of the payday loans sharks... crazy!

    Everything posted above is my personal opinion. It may be right, it may be wrong, but it is mine.


  • venisonvenison Forumite
    4.7K posts
    1,000 Posts Fourth Anniversary Name Dropper I've been Money Tipped!
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    Look at it this way people who get over payments are delighted to pay it back week by week, why shouldn't the reverse be true?
    Stay safe, keep well and take care x
  • daKlonedaKlone Forumite
    137 posts
    Eighth Anniversary 100 Posts Combo Breaker
    Because she relies on that money and has done nothing wrong?

    Because I'm sure £300 is neither here nor there for a government agency, but means the difference between eating and not eating for plenty of individuals.

    Maybe you're trying to be funny, but I'm suffering severe sense of humour failure on this subject.

    Everything posted above is my personal opinion. It may be right, it may be wrong, but it is mine.


  • Kentish_DaveKentish_Dave PPR
    842 posts
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    On this case, fortunately, she’s not relying on it as you kindly helped her out,

    Are you not able to accept the repayments back from her at this rate?

    Unfortunately if you rely on the state for some of your income you are subject to their rules and there’s not much to be done about it.

    Has she anything she could sell on eBay to get some money in in the short term?
  • Alice_HoltAlice_Holt Forumite
    3.8K posts
    1,000 Posts Fourth Anniversary Name Dropper
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    She could try contacting her MP and asking them to intervene with HMRC.
    Alice Holt Forest situated some 4 miles south of Farnham forms the most northerly gateway to the South Downs National Park.
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