Housing Benefit: Overpayment

bkmla

How far back can a council go in terms of recovering from a claimant an overpayment of Housing Benefit?

For example, if a council has considered buildings insurance to be an eligible charge for the previous five years, and suddenly it decides that this is not an eligible charge and that it has made an error resulting in overpayment, how many years can it go back in demanding repayment?

To develop the example above: if payment of an annual insurance premium of £150 has been incorporated in the service charge of a shared owner's occupancy payment to their housing association, over five years this would amount to £750. But if a time limit of two years applies to recovery of the overpayment, the council would only be able to reclaim £300.

Finally, can anyone supply a link to legislation relating to this matter?

HillStreetBlues

bkmla said:

How far back can a council go in terms of recovering from a claimant an overpayment of Housing Benefit?

For example, if a council has considered buildings insurance to be an eligible charge for the previous five years, and suddenly it decides that this is not an eligible charge and that it has made an error resulting in overpayment, how many years can it go back in demanding repayment?

To develop the example above: if payment of an annual insurance premium of £150 has been incorporated in the service charge of a shared owner's occupancy payment to their housing association, over five years this would amount to £750. But if a time limit of two years applies to recovery of the overpayment, the council would only be able to reclaim £300.

Finally, can anyone supply a link to legislation relating to this matter?

https://www.legislation.gov.uk/uksi/2006/213/regulation/100

Recoverable overpayments

100.—(1) Any overpayment, except one to which paragraph (2) applies, shall be recoverable.

(2) Subject to paragraph (4) this paragraph applies to an overpayment [F1which arose in consequence of] an official error where the claimant or a person acting on his behalf or any other person to whom the payment is made could not, at the time of receipt of the payment or of any notice relating to that payment, reasonably have been expected to realise that it was an overpayment.

If you supplied the correct info required and they have miscalculated it then it's not recoverable due to official error (can't see an "average" person knowing the council was wrong in allowing building insurance.

With building insurance it's normally allowable, but it would be based of your leasehold agreement.