Can the overpayment be reduced?
We may be able to reduce the amount of the overpayment if you are still entitled to some benefit for the period of the overpayment. This is called awarding "Underlying Entitlement".
Mrs Tibbs is paid Housing Benefit of £60 per week for the period 4 September to 30 October. The Housing Benefit entitlement of £60 is based on Mrs Tibbs receiving Income Support.
On 2nd December we are advised by The DWP that Mrs Tibbs’ entitlement to Income Support ended on 15th October as she had started a part-time job.
This creates an overpayment of £120 for the period 15 October to 30 October.
However, as Mrs Tibbs’ Income Support has stopped because she has started part time work she is still entitled to Housing Benefit of £40 per week based on her earnings for the period of the overpayment. The overpayment is therefore reduced by £80, 2 weeks at £40 per week. A revised overpayment of £40 is recoverable from Mrs Tibbs.
If Mrs Tibbs had ceased to be entitled to Income Support because, for example, her savings were now more than £16,000 she would no longer be entitled to Housing Benefit and therefore the overpayment of £120 would be recoverable.
If you think you may be entitled to Underlying Entitlement you should contact us on 01295 227002 as you will need to provide proof of your income and savings and may need to complete a new benefit application form.