Advice about housing benefit overpayment.

[Deleted User]

Hi i have just found out ive been overpaid housing benefit from UC for past 10 months.

I bought my Flat from council via RTB but didnt update it on UC all my bills are automated as i am not that financially literate

I understand the fault is mine but ive been paid extra 550 monthly for past 10 months so 5500 in overpayment.

When i update it now what will happen?

Will there be a fine, interest payments, court case, fruad case ?

Or will it just send me overpayment letter and make reasonable deductions from my  UC

I rely totally on UC as have no job. i get approx 1500 monthly so updated it will be 950.

How much would they charge me monthly from the remaining 950 UC payments ?

HillStreetBlues

Looking at it logically I would expect it will trigger an investigation, not only looking at the overpayments, but where the money came from for you to buy your property.
The outcome with depend of what the investigation finds.

kaMelo

Is this the same council flat you bought over two years ago?

poppy12345

If you're claiming UC then it will be housing element and not housing benefit. Were you claiming housing benefit before you claimed UC? You said you've been claiming UC for 10 months but in a previous thread you said you bought your property 2 years ago. Previous thread here for reference. https://forums.moneysavingexpert.com/discussion/6499616/renting-out-2bed-council-flat-2-years-after-purchase#latest

If you were claiming housing benefit before UC then you'll have an overpayment for that too and you will need to contact them. 

[Deleted User]

poppy12345 said:

If you're claiming UC then it will be housing element and not housing benefit. Were you claiming housing benefit before you claimed UC? You said you've been claiming UC for 10 months but in a previous thread you said you bought your property 2 years ago. Previous thread here for reference. https://forums.moneysavingexpert.com/discussion/6499616/renting-out-2bed-council-flat-2-years-after-purchase#latest

If you were claiming housing benefit before UC then you'll have an overpayment for that too and you will need to contact them. 

Sorry yes its housing element not housing benefit.

Im concerned about what happens next, will there be interest on outstanding overpayment, or a fraud case or simply just have to pay monthly.

Ive heard it can be 1/3 of benefits, so 317 monthly out of 950 UC ?

Newcad

It definitely appears that we are not being told the correct story here.

Surely if the poster had bought the flat before claiming UC then there is a bigger question to answer?

How has the poster provided UC with evidence of a tenancy when making the UC claim?
UC do want to see a documented liability to pay rent before they will pay UC-HE.
They ask to see the Tenancy Agreement, which a council/social tenant will always have.

If the poster has told UC they are a tenant in the property when claiming UC, but in fact owned the property, then that is clearly fraud.
If they have provided UC with falsified or no longer valid tenancy/rent documents then they haven't a leg to stand on.

(If that is the case then I'm guessing the situation may have actually come to light when UC noticed that a supposed council rent hadn't been increased on 1st April and queried it with the council?)

HillStreetBlues

OP, if you want advice you need to give full details and time-frame.
No one can help you with just small snippets of info.

sheramber

Rather muddled information.

The OP bought his council house  in 2022?

In January 2024 he asked  about renting it out as he needed to move back with his parents for his health.

He would have to offer it back to the council if he was to sell at that time.


Did he rent it out and move back with parents?

What property has he been claiming housing allowance for?