Overpayment of Benefit

If you receive an overpayment of benefit, in most cases you will have to pay the money back. This page explains how you may have been overpaid, whether you have to repay the benefit money and how you can pay it back.

What is an overpayment of benefit?

An overpayment is any amount of housing benefit or council tax benefit (or both) which has been paid to you, but which you are not entitled to. This could happen because you did not inform the council of a change in your circumstances, such as:

• Your Income Support or Jobseeker's Allowance ending;
• An increase in the earnings or private pension or other benefit award of you or anyone else in your home;
• Someone joining your household;
• You leaving the address for which Housing Benefit was being paid.

The amount that you have been overpaid is the difference between the amount of benefit you actually received and the amount that you should have received.

For example: if you received £12 a week for two weeks (total £24) and as a result of a change in your circumstances you should only have received £10 for each week (total £20), then you will have been overpaid £4. (£24 - £20 = £4). So you would have to pay back £4.

Do I have to pay the money back?

In almost all cases overpaid benefit has to be repaid, even if it was paid because of our error.

However, you may not have to repay the overpayment if it was our error and we could not have reasonably expected you to know that you were getting an overpayment.

If you have been overpaid, we will write to you giving the reason for the overpayment and a statement of the dates and amount.

How is the money paid back?

If you are a council tenant or private tenant and still receiving Housing Benefit, you can repay the overpayment from the benefit that you are getting.

This will mean you have to increase the amount that you contribute to your rent.

If you are no longer receiving Housing Benefit, you will get a bill. You can pay the bill on our website:

Pay housing benefit overpayment online

If you cannot pay the entire bill straight away, you can pay it in instalments. You will need to contact us to make arrangements.

For Council Tax Benefit, the overpayment will be added to your Council Tax Bill.

What if I disagree with the overpayment?

If you disagree that you have been overpaid, or with the amount we have calculated, or that you should repay it, you can ask us to explain our decision. If you would like a statement of reasons, you must request this within one month of the date of the decision letter.

Alternatively you can also ask for a review or you can appeal against the decision.

You must ask for a review or make an appeal within one month of the date of the overpayment notice. For more information on making an appeal, please see our Appeals page. 

What if I do not repay or appeal?

If you do not appeal or arrange to repay the money, we may take further action to get it back. This could lead to legal proceedings.

Page last reviewed 30 Mar 2011