Housing benefit overpayment - help please

chuckie851

I'm helping a friend who caused an overpayment of Housing Benefit by failing to declare when her savings went over £10,000.  This goes back to 2021, and her savings had been gradually increasing.  She has a chaotic lifestyle and it seems as though she was genuinely unaware of this for quite a long time.  She has now received 14 assessments, all 13 weeks apart.

My question is:  Would the Diminution of capital rule apply for an overpayment where the capital was more than £10,000 but less than £16,000?  It's a complex calculation, but the amount of overpayment each quarter gets progressively larger than than the previous one, and it appears they began a fresh calculation each time.  I'm not sure if I should advise her whether or not to appeal the decision.

poppy12345

chuckie851 said:

I'm helping a friend who caused an overpayment of Housing Benefit by failing to declare when her savings went over £10,000.  This goes back to 2021, and her savings had been gradually increasing.  She has a chaotic lifestyle and it seems as though she was genuinely unaware of this for quite a long time.  She has now received 14 assessments, all 13 weeks apart.

My question is:  Would the Diminution of capital rule apply for an overpayment where the capital was more than £10,000 but less than £16,000?  It's a complex calculation, but the amount of overpayment each quarter gets progressively larger than than the previous one, and it appears they began a fresh calculation each time.  I'm not sure if I should advise her whether or not to appeal the decision.

You've asked your question on a thread from May 2024. Please start your own thread, by doing this there won't be any confusion. We would also need to know if your friend is under or over state pension age. If over state pension age do they receive Guaranteed Pension Credit?