I understand that guidance was issued to local authorities (a HB circular?) to the effect that they should not start recovery action for alleged HB/CTB overpayments until the time limit for appealing was passed, or until the appeal process was exhausted if an appeal was made. Can anybody provide me with the reference please, or fax a copy? Would debiting the rent and council tax accounts with the alleged overpayments count as recovery action? How about if the local authority registers the alleged debt with the credit reference agencies? Thanks for any help.

Hi Brian,

The following is an extract from Part A7 of the HB Guidance Manual:

7.230 Authorities should not start recoveries without giving the person from whom repayment is being sought a reasonable opportunity to
·reach a mutually acceptable agreement with them, or
·apply for a revision

7.231 Overpayment notifications should include an invitation to the person affected to either make a full repayment, or negotiate some other arrangement within 28 days.

7.232 If you do not receive a response within 28 days, recovery may start, although the period for requesting a revision has not yet expired. This recovery will normally be by deductions from ongoing HB, but any other method may be used, if appropriate.

7.233 Do not start civil proceedings until the time for seeking a revision has expired.

Similar advice was also given in the recently issued Overpayments guide, but this clarifies that halting / delaying recovery is only good practice and there is no legislative requirement to so do

The DWP HB/CTB Overpayments Guide is available online.

See also item in this forum, from 28th April. CPAG was looking for test cases on this subject.