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Underpayments of HB being offset against Overpayments
Dear All
I might be going mad, but I thought that underpayments of HB could not used to offset against an overpayment, unless it relates to the same period?
My client has a historic HB overpayment, being recovered at £11.10 - sees us in August we note that they had not added a child to the claim, they accept error put child on, no lump sum paid, this has been used to reduce the debt - the period of underpayment is around 2 years after the end of the period of overpayment.
So is it best practice that I am thinking of or is there something more concrete that I can throw at them?
Thanks in advance
They can do this. See Reg 101(1) and (2). They can recover from any arrears of HB due to the claimant for any period and, by virtue of the words in brackets in para (2), recovery from arrears is not subject to the weekly limits that apply to ongoing payments:
(2) Subject to paragraphs (4) and (5), where a relevant authority makes deductions permitted by paragraph (1) from the housing benefit it is paying to a claimant (other than deductions from arrears of entitlement), the deduction in respect of a benefit week shall be— (the weekly limit of 3 x 5% of the personal allowance)
Many thanks for the information Mr Anorak
Cheers
Is an underpayment not arrears of entitlement, and so is not permitted?
Yes, an underpayment is arrears of entitlement. The regulation says that there is a limit to the recovery amount except from arrears of entitlement - so there is no limit to the recovery amount from an underpayment.
Thank you for the clarification
Not such good news for the client, but always good to know.
Cheers