HB Overpayment caused by backdated occupational pension

Tenant was being paid wrong amount by her pension provider for couple of years. This was rectified and LA have advised that overpayment is recoverable.

We asked them to reconsider and use their discretion not to recover as tenant was unaware of any overpayment, also asked them to treat as capital but this was refused.

That is the correct decision unfortunately - the only hope of avoiding repayment is if the Council exercises its discretion not to recover.

The payment counts as income for the period to which it relates; and since the overpayment does not arise from an official error, it is recoverable.  If HB was paid to the landlord it is recoverable from both the claimant and the landlord; otherwise it’s recoverable only from the claimant.

All payments of income in arrears should come with a “don’t spend it yet” warning - the Council may well be asking for 85% of it (if CTB/CTR also awarded).