Recovering overpaid Housing benefit by deduction from your ongoing Housing benefit entitlement
A recoverable overpayment can be deducted from the claimants or partners ongoing Housing benefit award.
The current rates of deduction are as follows:
£21.25 per week – If the claimant has been found guilty of fraud; or admitted fraud after caution, or agreed to pay an administrative penalty.
£12.75 per week – For all other cases the standard (non-fraud rate) applies.
Plus 50% of an earned income disregard
Housing Benefit legislation allows additional recovery at the rate of 50% of any earned income disregard that is applied in the Housing benefit assessment. The current weekly earned income disregards are as follows:
Lone parents £25
Disabled persons £20
Couples £10
Single claimants £5
| Claimant Type | Standard deduction rate | 50% earnings disregard | Total weekly deduction rate |
|---|---|---|---|
| Lone parent | £11.25 | £12.50 | £23.75 |
| Disabled persons | £11.25 | £10.00 | £21.25 |
| Couple | £11.25 | £5.00 | £16.25 |
| Single claimant | £11.25 | £2.50 | £13.75 |
| Claimant Type | Standard deduction rate | 50% earnings disregard | Total weekly deduction rate |
|---|---|---|---|
| Lone parent | £18.75 | £12.50 | £31.25 |
| Disabled persons | £18.75 | £10.00 | £28.75 |
| Couple | £18.75 | £5.00 | £23.75 |
| Single claimant | £18.75 | £2.50 | £21.25 |
Whilst there is no formal right of appeal against the application of the 50% earnings disregard in the recovery rate, a claimant may request a review of the rate of deduction if they are experiencing financial hardship.
If you do request a review, you will need to give us as much detail as possible about your expenditure and personal circumstances in order for us to make a decision regarding your request.
When we have made a decision we will write to you and let you know. There is no formal right of appeal against this decision; however, you can request a review within one month of the date of the notification letter. A decision can be looked at again if your give us new information or if your circumstances have changed.
Reductions in the recovery rate are not awarded on an indefinite basis; they are reviewed at a specified frequency.
