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UC housing costs / overlapping HB
First UC nightmare..
Client ticked the box to say didn’t pay rent (as she received HB) HB has stopped but housing costs not yet in payment. JCP have lost tenancy agreement. HA said they would submit electronically and I was told by UC today there were “thousands” of landlord emails waiting to be dealt with but not to worry as when paid it would be backdated and landlords were aware of delays in UC costs being paid so all was well….
I am sure we were told that any overlapping HB would be recovered from first payment of housing costs but in this case they have recovered the overlapping amount from UC when housing costs are not being paid leaving client with £130 to last the month and is now 2 months in rent arrears.
Does anyone have experience of recovery of overlap of HB from basic amount of UC? Seems grossly unfair and no way of getting HB back in payment. DHP seems only option but not sure what happens as doesn’t some UC housing costs have to be in payment to receive DHP?
Social landlords are reporting that housing costs are now in a backlog of several months even where evidence has been submitted. They are getting paid in the second, third or even fourth month. Yes landlords are aware but in most cases debt recovery action will continue in spite of sympathy.
Where HB has been paid for a period which overlaps with the UC MAP then yes it can be recovered in full from the housing costs element to prevent double payment. Otherwise overpayments should be recovered at 15, 25 or 40 per cent, so in a case where not working and not fraud 15 per cent. Has your client also had an Advance recovered?
Things to suggest are:
- ring UC and point out the overpayment recovery rate and ask for a further payment?
- landlord has an escalation telephone number for housing costs team for cases at court or eviction stage, but you don’t mention that it is yet this serious
Hi Sarah, thanks for that. Could you point me to where those figures are from, can’t find them in CPAG handbook, prefer to have them in front of me before I call UC. Yes client is having benefit advance deducted as well…
what a shambles..how is the system possibly going to cope when roll out is at full pace
Hi CPAG p1224-5 - recovery of overpayments from UC, just been looking at it for a case here
I cant at this minute lay my hands on the bit which says about the HB being recovered from first payment of UC ... will locate it later
I think the HB paid in the first month is treated the same as any other unearned income for UC, so it taken into account in full, reducing the UC award. Same effect as being recovered in full, just a different route.
If I get time, I’ll try to find a reference for this later…
There you go, someone else has done it for me…
thanks everyone, not what I wanted to hear but what can you do…