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Legal time limit for HB overpayment recovery
My client’s landlord has received a letter from HB stating they intend to recover an overpayment from on-going HB. The alleged overpayment relates to a period in 2006. As I understand it the LA have not made any attempt to recover this overpayment until now - because he has returned to HB, (following a 5 year period in employment) and the client has made no payment or indeed acknowledged the overpayment within the last 5 years.
As I understand things The Prescription and Limitations (Scotland) Act 1973 limits the recovery period to 5 years and if that period has been exhausted then any debt (in this case the HB overpayment) cannot be recovered - EVEN FROM ON-GOING HB
My problem is that I have been advised DWP have stated they will defend their position if any challenge is submitted. Can anyone advise if any caselaw would support a challenge or indeed any personal views or experience would be welcome.
I believe they have failed to comply with Sch 9 part 15 of HB Regs 2006 because they have not issued a valid determination to the client and instead sent a letter to the landlord, and I intend to challege on that basis however any views on the other issues would be appreciated.
To avoid confusion I believe the time limit in England is actually 6 years’ but only 5 in Scotland.
On the application of the Limitation Act in England and recovery from housing benefit see below. I don’t know whether Newham are trying to appeal this one or not.
This DWP HB/CTB circular explains their position:
On the narrow issue of recovering from ongoing benefit from the LL (this assumes the isn’t a limitation bar), the LA is within its rights to recover so long as an appropriate notification was issued at the time. Even if it wasn’t strictly Sch 9 compliant, the decision is only rendered in effective if the notification caused “significant prejudice” or “substantial harm”.
Assuming the LA has determined the target to be the clmt, the LL has no right of appeal against the shortfall.