Recovery of Energy Bills Support Scheme overpayment?

One of our clients got the £400 Energy Bills Support Scheme via his local authority, as he wouldn’t have automatically received it otherwise. The council then paid him that £400 twice, and have sent an invoice and now a final notice about him repaying that £400. The council have also said that as it is a government grant, there is a period for recovery, and it must be paid back by October 2024.

I can’t see how it wasn’t an official error that they just paid him the £400 twice (although he should have noticed and told them he’d received it twice, but speaks no English); is this £400 definitely recoverable by the council?

Dear Zoe,

As the Energy Bills Support Scheme came into effect though the Energy Prices Act 2022, rather than through the Social Security and Contributions Benefits Act 1992 that is administered via the Social Security Administration Act 1992, I don’t think that the rules about official error and failure to disclose or misrepresentation of a material fact apply.

I think the rules about restitution for unjust enrichment are more relevant. If your client has received double the energy bill discount allowed under the scheme, then your client received money to which they are not entitled. I cannot see anything in a quick read of the guidance that would allow a double payment. I am sorry to say I think they have to pay it back and this requirement could be legally enforced via the civil courts. I don’t think there is any requirement for wrongdoing on your client’s part to be involved. They can be quite innocent but have still received unjust enrichment as they received money to which they were not entitled.

I am not so sure about the repayment schedule as it seems to me that is the local authority’s problem rather than your clients. However, I consider this to be debt advice and I will leave it to qualified debt advisers to comment on this aspect.

I would be happy to read someone explain if I am wrong.

Good Luck

Chris