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main content Housing and Council Tax Benefits - overpayments

What is an overpayment?

An overpayment is any amount of benefit that has been paid to you to which you are not entitled.

If you are paid too much benefit, we normally ask you to pay back the amount you have been overpaid.

As Council Tax Benefit is credited direct to your Council Tax account, overpaid Council Tax benefit is sometimes referred to as "excess" benefit on your Council Tax bill.

How does it happen?

Overpayments happen for various reasons. Some examples are:

• you may have given us wrong information;
• you may not have told us about a change in circumstances promptly e.g. an increase in your wages or a change in your household composition; and
• we may have made a mistake in our calculations or delayed in reassessing your entitlement.

Who is the overpayment recovered from?

An overpayment is recoverable from either the person who caused the overpayment, or the person to whom the benefit was paid.

Council Tax benefit overpayments are recovered direct from your Council Tax account.

How will they be recovered?

If you are still receiving Housing Benefit, the overpayment will be recovered from your future benefit payments by weekly deductions. These deductions are known as “clawbacks”.

You are responsible for paying the difference between the benefit paid (after clawback) and your rent.

If you are no longer entitled to Housing Benefit we will issue an invoice for the amount overpaid.

If you have been overpaid Council Tax benefit the overpayment will deducted from your Council Tax account. You will be sent a new Council Tax bill which will show your new balance including any adjustments for "excess benefit". You can then make arrangements with the Council Tax office to pay.

What if my Housing Benefit was paid to my Landlord?

If your benefit was paid to your Landlord and you are still entitled to Housing Benefit we will make deductions from the benefit payments we send to your Landlord.

If you are no longer entitled to Housing Benefit because your income exceeds the threshold or you change address we will issue an invoice to your Landlord.

Can I appeal against an overpayment?

Yes, you can provided you are an affected person.

• You can ask us for the reasons why your claim has been overpaid. You have to ask us to provide a "statement of reasons" in writing.

We will then write to you explaining the reasons for our decision.

• You can ask us to change our decision. But you only have one month from the date on our notification letter. You need to tell us what decision you do not agree with and why you think it is wrong.

We will look at our decision again and write to you with the result.

• You have the right to appeal to an Independent Appeal Tribunal on some overpayments.

You can do this when you ask us to change our decision.

• Or, you can ask us to change our decision first, then appeal if you are not satisfied with the response. Appeals are heard by Tribunals run by the Appeals Service with are totally independent.

Appeals must be made in writing and signed by you.

There are time limits - appeals must reach us within one calendar month of the decision you are appealing against.

For further information about Appeals process please see our guidance notes how to appeal against a Housing or Council Tax benefit decision.

What happens if the overpayment is not repaid?

Where an invoice has been issued and remains unpaid, or an agreement to repay the debt has not been maintained we may take action against you in the County Court.

Where can I get help?

If you need further advice, please contact the Council Tax and Housing Benefit department.