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Forum Home  →  Discussion  →  Housing costs  →  Thread

DHP overpayment after PIP award removes benefit cap

AEastwood
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The Bond Board, Rochdale

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Total Posts: 34

Joined: 26 January 2012

Hi
I’m not a WR adviser so apologies if this is a basic query…
We have four benefit capped families for whom we have subsequently gained exemptions to the cap via a PIP award. Housing Benefit have revised the earlier housing benefit decision and removed the cap. Prior to PIP being awarded we had got DHP for all four families. This was paid directly to the landlord as was the housing benefit, As the cap has now been retrospectively removed, housing benefit have now invoiced the tenants directly for recovery of the DHP as an overpayment. They say they are unable to recover it from the housing benefit.
We would assume they would try to recover it from the landlord , not the tenant. Each case is different in that not all now have a rent account in credit due to shortfalls where rent is higher than LHA rate or previous arrears.
Any advice appreciated.
Thanks

JoW
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Financial inclusion manager - Wythenshawe Community Housing

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Joined: 7 September 2012

I have come across this and argued successfully that the overpaid DHP is not recoverable as the overpayment did not occur due to a failure to disclose a material fact or the misrepresentation of a material fact i.e. the tenant did not do anything wrong. These are the grounds for requesting an overpaid amount of HB back.

Also the tenant couldn’t be reasonably expected to know they were being overpaid because they could not know until PIP is awarded whether they will qualify and it isn’t their fault that it can take PIP weeks and weeks to make a decision.

HB Anorak
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Benefits consultant/trainer - hbanorak.co.uk, East London

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Here is Reg 8 of the DHP regs in its entirety:

8.—(1) A relevant authority may review any decision it has made with respect to the making, cancellation or recovery of discretionary housing payments in such circumstances as it thinks fit.

(2) Without prejudice to the generality of paragraph (1) above, a relevant authority may, on any such review, cancel the making of further such payments and recover a payment already made where that authority has determined that—
(a) whether fraudulently or otherwise, any person has misrepresented, or failed to disclose, a material fact and, as a consequence of that misrepresentation or failure to disclose, a payment has been made; or
(b) an error has been made when determining the application for a payment, and as a consequence of that error, a payment had been made which would not have been made but for that error.

Councils disagree about whether recovery is only permissible in accordance with para (2), so there can be no recovery unless there was an error, misrepresentation or failure to disclose, or whether para (1) includes a general power to recover any DHP subject only to Wednesbury unreasonableness.  I don’t think there have been any court cases that have looked at it.

AEastwood
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The Bond Board, Rochdale

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Total Posts: 34

Joined: 26 January 2012

Thank you both. This is really useful. We will give it a go on paragraph 2.. Much appreciated.