Overpayment Of Housing Benefit?

Rex_Mundi

I've been asked by a friend to find out if they are liable for overpayment of Housing Benefit?

They recently received a letter from a debt collection agency chasing an overpayment from the period mid 1998 to mid 1999. This is the first contact they have had on this matter that I'm aware of.

I know the Limitations Act (1980) covers a lot of debts older than six years, but I don't know if Housing Benefit overpayment is covered in the same sort of way (I've never claimed any benefit ever, so I don't know how they work).

Cheers if anyone can shed any light on this.

real1314

Nope. HB is paid by local authorities on behalf of the government. No limitations on debts to govt.

jai_2

I think you will find all benefits are subject to being statue barred under the limitation act and therefore not enforceable through the courts. What they can do is reduce any current benefits to recover the overpayment without using a court

Rex_Mundi

real1314 wrote: »

Nope. HB is paid by local authorities on behalf of the government. No limitations on debts to govt.

If this is the case, why do Inland Revenue only expect us to keep receipts, pay slips, bills etc for only six years? Surely if they want money from 9/10 years ago, they would expect you to be in a position to contest this in court? Yet we are only expected to keep six years worth of records for our finances. How can they (probably the biggest, most serious financial government department of all that we deal with regularly) expect to not have a limitation on how many years they can claim when they only ask for six years of records?

jai wrote: »

I think you will find all benefits are subject to being statue barred under the limitation act and therefore not enforceable through the courts. What they can do is reduce any current benefits to recover the overpayment without using a court

It worries me saying this to my friend. I've heard so many times of people being taken to court over benefits, and yet you seem to be saying that this is not possible?

I don't know what to say to my friend. Can anyone post any links that may help them out?

jai_2

http://www.insolvencyhelpline.co.uk/debt_factsheets/liability_for_debts_and_the_limitation_act.htm

real1314

jai wrote: »

http://www.insolvencyhelpline.co.uk/debt_factsheets/liability_for_debts_and_the_limitation_act.htm

I stand corrected.