Editor's Blog0 min ago
Housing Benefit
My sisters local Council is asking her for over £19,000 for housing benefit she has been getting for 12 years. Apparently she had over £16 k when she was first given it, but she insists they never asked about her savings when she applied just after being widowed. We have spoken to Citizen Advice who said she is liable unless we go to a Tribunal. However I have read somewhere that they can only claim back 6 years. Does anyone know if this is true. The funny thing is that when paid back she will be below the threshold for further benefits.
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The DWP has three ways of getting money back from overpayments of Housing Benefit, viz
(a) obtaining a County Court Judgment against the debtor ;
(b) making deductions from any benefits that are still ongoing ; and
(c) using a Direct Earnings Attachment to get payments made directly from the debtor's earnings.
Only the first of those three methods is subject to a 6-year time limit in England & Wales, where the debt continues to exist but can no longer be enforced through court action. The second and third methods of reclaiming overpayments can still be employed at any time though.
Scroll down to 'Prescription limits for Civil Action' here:
https:/
(You're looking for paras 5.110 to 5.117)
I forgot to say she is 82 and her only income is State Benefit which includes her late husbands SERPS and two small amounts (less than £100 a month for the two)totalling approx £13 k a month,in all. She wants to pay it all back as it is worrying her. I suggested she paid say £12k from her savings and make a repayment plan with council, but with rent and other bills to pay even if she paid say £50 a month she won't have much left for other bills ie food etc,each month.
^^^ I'm glad that Gylly's brain is properly in gear, as it seems that mine wasn't earlier!
The same basic principles that I outlined above still apply though. i.e. there are a number of ways in which a local authority can seek to recoup money from HB overpayments. (See para 4.43 here for a non-exhaustive list: https:/
JW47:
I'm assuming that 'month' should read 'year' in your post above. (I wouldn't mind £13k per month!).
I suggest that your mother should try offering a very small amount each month and seeing how the council responds to such an offer. For example, when I owed my local county council £3,000, I had very limited savings and I wasn't in regular work. I eventually managed to get them to accept just £15 per month, meaning that it would take me 16 years and 8 months to pay off the debt. I'm now 11 years into that arrangement (and with more mony available to me nowadays) but they've not bothered to chase me for any higher payments.
She says she doesn't remember being asked or declaring any savings at the time bearing in mind she had been recently bereaved and had just come out of hospital at the time. She doesn't recall having any reviews. I'm sure she would have told them about her savings if they had. I'm don't think she was aware of a threshold, she thought benefit was decided on her income.
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