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Housing Benefit Overpayment Appeal Letter Sample

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Scott Nelson

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MoneyNerd’s founder, Scott Nelson, has a decade of financial industry experience, including 6 years in FCA regulated loan and credit card companies. Troubled by a lack of conscience in the industry, he founded MoneyNerd to give genuine advice to those in debt and struggling financially.

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Janine Marsh

Financial Expert

Janine Marsh is an award-winning presenter and a valuable member of the MoneyNerd team. With a wealth of experience as a financial expert, she's been featured on BBC Radio 4, BBC Local Radio, and BBC Five Live, and is a regular on Co-op Radio.

Learn more about Janine
· Feb 23rd, 2024
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Housing Benefit Overpayment Appeal

For free & impartial money advice you can visit MoneyHelper. We work with The Debt Advice Service who provide information about your options. This isn’t a full fact-find, some debt solutions may not be suitable in all circumstances, ongoing fees might apply & your credit rating may be affected.

Are you worried about paying back a housing benefit overpayment? You’re not alone. Every month, over 170,000 people visit our website seeking advice on issues just like this one. 

In this article, we’re going to explain:

  •  What happens if you’ve been overpaid housing benefit
  •  How to challenge the housing benefit decision
  •  Whether you can write off some of the debt
  •  The process of appealing housing benefit overpayments
  •  How long housing benefit overpayment appeals usually take

We understand how confusing and scary it can be to deal with overpayments; some of our team have even been in the same boat.

Don’t worry; we’re here to guide you through the process of appealing a housing benefit overpayment that was not your fault and to answer all your questions. Let’s get started.

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This isn’t a full fact find. MoneyNerd doesn’t give advice. We work with The Debt Advice Service who provide information about your options.

What Happens If You’ve Been Overpaid Housing Benefit?

You’ll be contacted by the council to inform you that they believe you’ve been paid too much.

Your payments are usually stopped until the overpayment has been cleared if you’ve been overpaid housing benefits

You should get a letter telling you why you’ve been overpaid, but sometimes the letter might get lost in transit.

Call the council yourself if your housing benefit payments stop and you don’t hear from them. Ask the council why your payments have stopped.

If it’s due to overpayment, ask them to send a letter to confirm. Make a note of the date and time of the call, and remember to ask for the name of the person you’re speaking to. This aids in tracking your claims and in case of disputes.

Can You Appeal If You’ve Been Overpaid Housing Benefit?

You can appeal if you disagree with the overpayment. With the appeal, you’ll challenge the decision made by the council.

The appeal timeframe is usually one calendar month after you learn about the overpayment in a decision letter.

If one month has passed, you may still be able to appeal if you have a good reason for not doing so earlier, such as illness.

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How to Write a Letter to Appeal Housing Benefit Overpayment

You might have a few options on how to submit your appeal, depending on your council and their operations.

Visit GOV.UK to find a list of all the local councils if you’re having trouble finding yours. Some may have an online form, an email address, or a postal address. 

Use the housing benefit overpayment sample letter I have put together as your template. It’s a useful starting point and will help you to put together your case moving forward.

How Long Do Housing Benefit Overpayment Appeals Take?

The appeal process can take anywhere between 3 and 8 months to get a decision from the first-tier tribunal.

You don’t have to attend the tribunal if you don’t want to, but you will be asked if you’d like to attend.

If you decide against attending, your letter and supporting documents will be examined by the judge, along with the response from the council.

The outcome of the appeal is normally decided on the day of the tribunal.

Does it Cost Money to Appeal Housing Benefit Overpayments?

It doesn’t cost any money to put in an appeal.

It is possible to appeal yourself, but do remember debt advisors can help you if you need it.

To appeal, you’ll need to let the council know that you’re appealing and send supporting documents and evidence to support your claim.

You will need to share your reasons for appealing with an independent tribunal if the council disagrees with your claims.

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Do Housing Benefit Overpayments Always Have to Be Paid?

[https://www.gov.uk/government/publications/benefit-overpayment-recovery-staff-guide/benefit-overpayment-recovery-guide]

There are some circumstances where a housing benefit overpayment doesn’t need to be paid:

  • The overpayment is due to an official error
  • It was impossible for you to know that you were overpaid
  • It was not possible for your landlord to know you were overpaid

Contact a debt advisor who will be able to help determine whether the overpayment will need to be paid.

Free debt advisors are there to help you in this situation. Consider reaching out to:

How Can I Pay Back My Housing Benefit Overpayment?

If you need to pay back housing benefit overpayment after the appeal, you do have a few options.

The council will let you know how they want it to be paid. For example, you may:

  • Have a reduction in the amount of housing benefit you’re paid until the overpayment is cleared
  • You may have a regular payment taken from your employment or benefit payments
  • Pay the council directly using online banking

If you can’t afford to pay, I suggest using the simple budgeting tool to work out your incomings and outgoings.

This will help you prove to the council that you are struggling to afford living expenses. Approach the council, show them proof of your finances, and request to reduce the repayments to a more affordable rate.

Use the housing benefit overpayment appeal sample letter when you disagree with the benefit decision made by the council.

Remember, you’re not alone. There are many debt advisors and different debt solutions to consider when you can’t pay your housing benefit overpayments.

Could you legally write off some debt?

Answer below to get started.

How much debt do you have?

This isn’t a full fact find. MoneyNerd doesn’t give advice. We work with The Debt Advice Service who provide information about your options.

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The authors
Scott Nelson Profile Picture
Author
MoneyNerd’s founder, Scott Nelson, has a decade of financial industry experience, including 6 years in FCA regulated loan and credit card companies. Troubled by a lack of conscience in the industry, he founded MoneyNerd to give genuine advice to those in debt and struggling financially.
Janine Marsh Profile Picture
Debt Expert
Janine Marsh is an award-winning presenter and a valuable member of the MoneyNerd team. With a wealth of experience as a financial expert, she's been featured on BBC Radio 4, BBC Local Radio, and BBC Five Live, and is a regular on Co-op Radio.