What is an overpayment?

An overpayment of benefit occurs when you are paid benefit to which you have no entitlement. This can happen for many reasons.

How will you know if you have an overpayment of benefit?

We will write to you to advise you. In the letter you receive from us, we will give you the full details of the overpayment. We will tell you:

• What caused the overpayment.
• The dates and the amount of the overpayment.
• How much the overpayment is.
• What to do if you disagree with the overpayment.

If we are going to ask you to pay back the overpayment we will write to you again to tell you how this will be done.

What if I do not understand the overpayment?

There are several reasons why you may have received an overpayment of benefit, including:

• You may have forgotten to let us know that your income has increased, for example, Working Families Tax Credit, wages, state benefits, work pensions etc.
• Somebody may have moved into or out of your home. This would mean that we will need to work out your entitlement again.
• If you have other adults, such as non-dependants, living with you, their circumstances may have changed.
• You may have moved out of your home & not told us.
• You may have started work, or changed jobs.

Please do not rely on the Department for Work & Pensions or your landlord to tell us about any changes.

If your claim is found to be fraudulent, we will recover any benefit paid to you that you were not entitled to. You could also be prosecuted - See Fraud.

What if I do not agree with the overpayment?

The first thing to do when you receive your overpayment letter is to read it carefully. It will contain a paragraph, which will explain what the overpayment is for and the dates you have been overpaid.

If you still disagree with the overpayment, after reading the explanation you can do the following:

• If you do not understand the explanation you can phone, write to us or visit the benefits counter. You can also phone us and make an appointment or ask us to visit you in your home if you have difficulty in coming to us.
• You can appeal against the overpayment. You must do this in writing, within one month of the date on the letter. Please see the seperate page for Decisions, Disputes & Appeals.

How is the overpayment recovered?

Please follow the link on the left, "Paying Back an Overpayment" to find out how an overpayment can be recovered/paid back.

Please remember:

Do not ignore any letter regarding an overpayment. If your circumstances change, don't forget to let us know as soon as possible. If we know before, there is less chance of an overpayment. If you are moving home, your overpayment will not be cancelled.