A benefit overpayment is an amount paid when there was no entitlement under the regulations. Fraudulent overpayment is when you deliberately provide false information or fail to report a change of circumstances with the intention of obtaining or retaining benefit.
If you've been overpaid we'll contact you about the overpayment and tell you:
- the reason for the overpayment
- how much you've been overpaid
- what period the overpayment relates to
- whether the overpayment will be recovered and how
Recovering overpayments
The council has a duty to recover overpayments from tenants and landlords, and may take criminal proceedings regarding fraudulent overpayments.
We can recover overpayments by:
- weekly deductions from future benefit payments
- reducing benefit entitlement and payments made to the landlord (issued every four weeks) - you will be responsible for paying any rent arrears
- asking you to repay the overpayment
If we decide to recover an overpayment from a landlord, we may issue an invoice or make deductions from the tenant's benefit paid to that landlord. The amount deducted should not be treated as rent arrears and the landlord must not try to recover the shortfall from the tenant.
Recovery of an overpayment will not prejudice any criminal proceedings taken by the council regaring fraudulent overpayments.
Right of appeal
You can ask for a review of a decision to calculate an overpayment. Any such request should be made within one month of the decision notice.
A landlord can request a review where an invoice for payment has been issued to them, or a deduction is being made from the benefit they receive for one of their tenants in order to recover an overpayment owed by the landlord in respect of a tenant.
Where the overpayment is owed by the landlord personally, they will be notified in writing about the decision to recover it. Any request for a review should be made within 1 month of the decision notice.
A landlord can write to the council at any time requesting a written statement of reasons for the recovery of an overpayment.
Read more about Housing Benefit appeals.
If an overpayment is not repaid
Where an invoice addressed to a landlord remains unpaid, or an agreed arrangement to repay the debt over time is not being maintained, the council may take action in the county court.
Call us on 020 8583 4242 to discuss your claim or to book an appointment with us.
