Overpayments and method of recovery

My views are somewhat distorted when decidiing what powers a local authority has when recovering overpaid HB.

I have a client who is paying back an overpayment from on-going HB. (that o/p is not in dispute)

I realised the authority were applying an inappropriate non dep deduction. They have accepted that this led to an underpayment ( this u/p period is different from the o/p period).

The underpayment amount was less than the current overpayment balance -  and therefore they have decided to use the entire underpayment to pay towards the overpayment - which of course reduces the overpayment balance but has increased the clients rent arrears.

The authority have confirmed they have used HB reg 102(1)

I’m tying myself in knots about whether they can or whether they cant do this…..can anyone put me out of my misery ?

thanks in advance.

I think they can. Reg 102 (1) states that they can recover “by deduction from any housing benefit to which that person is entitled..” In their analysis of reg. 102 (1) in CPAG’s HB/CTB Legislation 24th Edition, page 502: “Under reg 102, there may be recovery from any HB owing to D to which D is entitled.  This can be arrears owed to D (even if the arrears are referable to dates outside the period of the overpayment) or future payments.”

Any other opinions?

Thanks for the above posts - To avoid confusion my reference to this method of recovery increasing the clients rent arrears was purely based on the fact that -  if the LA had paid the correct amount of HB to the LL throughout the underpayment period, as they ought to have done -  then more HB would have been paid to the LL. The practical effect of not doing so, and the clients failure to pay the balance, created an increase in arrears due to unpaid rent.

With regards to reg 102(1) - this makes reference to reg 98 (off setting) - CPAG’s HB/CTB Legislation 24th edition describes reg 98 in its General Note as -  “an extremely tortuous piece of legislation”

Well they’re not wrong !!!!

Thanks for your comments.  (any further views welcome of course)

just to add to the above - the o/p recovery will continue because there is still an outstanding balance to be recovered - despite the underpayment being swallowed up in its entirety…..

Some of our LAs will agree to pay the arrears of benefit onto the rent account rather than offset the overpayment if we can demonstrate hardship/rent arrears action.

Might be worth asking (if claimant concurs)?