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HB overpayment recovery methods
Client incurs HB overpayment from authority A, and moves to district B. Authority A are now getting direct deductions from cl’s ESA, at a high rate. As I understand it, there is no statutory maxuimum deduction rate in these circs, just discretion based on financial hardship.
The commentary to HB reg 102 says that an LA can only deduct from DWP benefits if they are “unable” to deduct from HB. Does this apply here? I.e. is the client able to say that Authority A must ask Authority B to deduct on their behalf at £10.95 per week, instead of getting DWP to take a cut of the cl’s ESA?
The commentary to HB reg 102 says that an LA can only deduct from DWP benefits if they are “unable” to deduct from HB. Does this apply here?
Yes it does, sorry I’m sure that’s not what you want to hear, the LA with the O/P (A) “may” request the LA paying HB (B) to help with recovery and they will come to an arrangement but it’s not a must.
I assume, from the details you have posted, that the claimant is in hardship because of the level of recovery from ESA? I suppose you could ask them to reduce it to the normal £10.95 or less? I can’t any other option.
Thank you. And I see it now in the guidance:
https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/233070/hbopg-rec-op.pdf
4.193 You can ask Debt Management to recover an overpayment by making deductions from a DWP benefit, if the
• overpayment was caused by a misrepresentation of, or a failure to disclose a material fact, whether innocently or deliberately, by the person who was overpaid, and
• LA who made the overpayment is unable to recover the HB overpayment by deduction from ongoing HB or excess CTB by transferring it to the Council Tax (CT) account. If however HB is now being paid by another LA, you can request Debt Management to make deductions