Housing benefit overpayments

A housing benefit overpayment means your local council thinks you’ve been paid more than you’re entitled to.

So why does this happen and what should you do if it does?

Housing benefit overpayments can happen because: 

• you gave incorrect information when you applied
• you didn’t report a change in your situation 

the council made a mistake 

If you get more money than expected, let your council know.

You might not realise you’ve been overpaid until a letter arrives. 

If your council thinks you’ve received too much housing benefit, they must write to you within 14 days and explain:  

• how much you’ve been overpaid
• how long you were overpaid for
• why the overpayment happened
• who must repay the money 
• how the money needs to be repaid 

A housing benefit overpayment doesn’t automatically mean you’ll be suspected of benefit fraud or hit with a fine.

You’ll only be at risk of charges or a financial penalty if you deliberately gave inaccurate information or didn’t report a change in your circumstances.

You might also be in trouble if you knew you’d been overpaid and didn’t let the council know. 

Yes. You can challenge a decision if: 

• the overpayment amount is wrong 
• you think the overpayment wasn’t your fault 

 If you want to dispute the decision:  

• Write to your council within one month.
• Clearly explain why you disagree. 
• Provide any supporting evidence.
• Request a review or appeal the decision.  

Include your housing benefit reference number in your email or letter, as this could speed things up. 

If the council doesn’t change their mind, you can take your dispute to an independent tribunal.

And if you believe the council’s recovery actions are unreasonable, you can file a formal complaint. 

You’ll find details of the complaints procedure on your local council’s website. 

If you’re still not satisfied, you can escalate your complaint to the Local Government Ombudsman for a final review.

The council might recover an overpayment by deducting it from:

• housing benefit, if you still receive it
• universal credit
• other benefits

 They could also: 

• arrange a repayment plan
• deduct the money from your wages
• take court action (a CCJ) 

 If the council decides to take court action, they must do so within six years of deciding the overpayment can be recovered.

You may not have to repay the money if:  

• the council made a mistake 
• you have a debt relief order
• you have a bankruptcy order 
• you're on an IVA
• your family’s health and wellbeing is at risk
• six years have passed so it’s statute-barred 

If repaying causes financial pressure, speak to your council. 

They might agree that you don’t need to pay them back, or let you make lower payments over a longer period.  

You can use our budgeting tool to help you work out how much you can afford to pay. 

You might also be able to apply for breathing space to get 60 days without contact from the council, so you have time to get debt advice.  

However, this won’t stop any payments that are already being deducted from your benefits. 

Although council mistakes are beyond your control, there are things you can do to make overpayments less likely.

Tell your local council: 

• about a change in address
• if someone moves in or out
• about any changes in your income
• if you stop receiving other benefits 

Finally, regularly look at any benefit letters you get to make sure the details are right. 

This can help you catch mistakes early.