Housing benefit - overpayments
How do we deal with overpayments?
The rules about administering overpayments are found in the housing benefit regulations and other subsequent legislation. We have a duty to implement these legal provisions and recover overpayments from tenants and landlords.
We may also decide to start criminal proceedings in respect of overpayments caused by fraud.
From whom is overpayment recoverable?
An overpayment is recoverable from either the person who caused the overpayment, or the person who received the overpayment.
How is benefit recovered from the tenant?
If the tenant is currently receiving housing benefit, the overpayment will be recovered from future benefit payments by a weekly deduction known as a 'claw-back'.
If payments are made directly to the landlord, the tenant's reduced entitlement will be reflected by the amount of benefit payment that is issued every four weeks.
The tenant is responsible for paying any rent arrears that occur as a result of the reduced amount paid to the landlord.
If the tenant is not currently receiving housing benefit, the overpayment may be recovered from other benefits or an invoice for payment may be issued.
Recovery of an overpayment will not prejudice any criminal proceedings that may be taken by the council in respect of fraudulent overpayments.
How is benefit recovered from the landlord?
If we decide to recover an overpayment from a landlord, the council will issue an invoice or make deductions from other tenants' benefit paid to that landlord. The amount of these deductions should not be treated as rent arrears for those tenants, and the landlord must not try to recover the shortfall from them.
Recovery of an overpayment will not stop any criminal proceedings that we may take.
Is there a right of appeal?
For further information on reviews and the appeals process see 'Housing benefit reviews and appeals'.
The claimant 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 recovery could be sought from him personally; that is, where he received the payment or a deduction is being made from the benefit he receives for one of his tenants in order to recover an overpayment owed by the landlord in respect of another tenant.
Where the overpayment is owed by the landlord, he will be notified in writing of the decision to recover from him. Any request for a review should be made within one month of the decision notice.
A landlord may write to us at any time requesting a written statement of reasons for the recovery of an overpayment from him.
What will happen if an overpayment is not repaid?
Where an invoice remains unpaid, or an agreed arrangement to repay the debt over time is not being maintained, we may take action in the County Court.
Important note
If a landlord regularly fails to repay overpayments that are recoverable from him, we can decide that the landlord is not a 'fit and proper person' under benefit regulations and can refuse to make direct benefit payments to that landlord.
How to pay
Payment may be made by:
- cheque or postal order through the post
- BACS payment
- payment in person
- online via this website
- credit/debit card by phoning us.
Payments by post
Where payment is made by post, please ensure that you quote your account reference number. If you require a receipt for your payment please enclose a stamped, self-addressed envelope. Payment should be made to the address shown above.
Please write your account reference on the reverse of the cheque. Please do not send cash through the post and allow at least three days for second class post.
BACS transfer from your bank
Please contact the housing benefit recovery team for advice if you wish to pay by this method.
Please note that our cash offices at Fell Road, Croydon, at Strand House, Thornton Heath, and in Central Parade, New Addington, are now closed.
Contact Details
- Contact name
- Housing benefit overpayment
- Telephone
- 020 8726 7000
- croyhben@croydon.gov.uk
- Address
- Municipal Offices
Fell Road
Croydon
CR9 1QA
