I owe housing benefit, can I move to Universal Credit

Pup_mum

Hi, because I didn't realise (just didn't think) to let housing benefit know my son had finished college after one year (he was on a one year course as he has ASD, and because of Covid he was too frightened to enroll with college for another year),  so wasn't in college or work between age 17 and 18 (I'd told child benefit and child tax credits and they both stopped, so I presumed HB would increase..), I now have to pay back a proportion of my housing benefit, as he was not classed as a dependent during that period. I now have to pay back £1551 at £23 per week, which reluctantly I understand i have to do.

My question is, I have been on the UC calculator and see I will be better off on UC, but does anyone know how does paying back HB work?  Can i move to UC and still pay back HB? I couldn't see anywhere on the calculator asking if i owed money. Tried calling, but I just get put on hold. TIA

poppy12345

There are no non dependant deductions for those that are under 18, regardless of whether they're in full time education or not. https://www.entitledto.co.uk/help/non-dependants

When you did the benefit check did you make sure you took into consideration the reduction in the standard allowance from October 2021? It will be about £86 per month less than what it is now.

There's also no non dependant deductions for UC for those that are under 21.

Robbie64

The overpayment was probably caused by the son being included in the needs allowance calculation rather than a non-dep deduction being applied. For HB calculations where no DWP means tested benefit such as ESA, JSA or IS is in payment an amount for each dependent child is included. When the son left full time education the amount for him should have been removed when calculating HB.

To the OP: if you wish to claim UC then owing money to HB wouldn't prevent you from being able to make a claim.Just make sure you would be better off from October when the UC uplift is removed.

Pup_mum

Thanks poppy12345 and Robbie64. I didn't realise about the reduction in October. I'll have another look, thank you. But because I privately rent and it's going up (also in October), I think I will still be better off under UC as they include the whole rent in calculations unlike HB. It's more how do I go about paying back HB what I owe if I swapped.

I'll try emailing HB and see if they reply. Thanks again. 

poppy12345

You can make arrangement to pay it back in installements but i would still check whether the overpayment is correct. As advised, there's no non dependant deductions if you have undder 18's at home, even if they're not in full time education.

Robbie64

As I posted above, the overpayment is probably not due to an erroneous non-dependent deduction being made but more likely an amount for her son was included in her HB calculation. For non-passported HB (ie cases where no means tested ESA, IS or JSA is in payment) then the calculation of HB includes not only an amount for the claimant and any premiums but also an amount for any children. When the son left education the amount for him should have been taken off the HB claim. This may be the cause of the overpayment.

Pup_mum

Unfortunately the overpayment is correct. With HB, when your child stops education they are no longer entitled to child benefit and if they are not getting CB they are no longer included in the HB claim. Hence I owe the money because I didn't know that and didn't tell HB until they did a review. So in my case UC will probably be better. Thanks again for your help.