Have you been told you owe housing benefit back? This is called an overpayment. You have the right to challenge this decision. These letters can be confusing
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Have you been told you owe housing benefit back? This is called an overpayment. You have the right to challenge this decision. These letters can be confusing and scary. But there are clear steps you can take. Below, we explain how overpayments work and what you can do.
What is a housing benefit overpayment?
An overpayment happens when the council or DWP pays you more housing benefit than you should have had. This can happen because:
- Your income or savings changed and you did not report it in time
- You moved but did not tell the council
- There was a council or DWP error in calculating your award
- You were working and your earnings were not counted correctly
- A family member moved in and their income affects what you can get
- You received a capital payment (such as a compensation settlement) that took you above the savings limit
Who is responsible for repaying?
Who pays the money back depends on why it happened and who got the benefit:
If the benefit was paid to you: You may be asked to pay it back. But you may not have to. That is the case if the overpayment came from an official error, and you could not reasonably have known you were being overpaid.
If the benefit was paid directly to your landlord: The council can usually get the overpayment back from the landlord if it was paid to them. This is true even if the real cause was a change in your situation.
Official error: Sometimes the overpayment was caused only by an error by the council or DWP. If you reported the change at the right time, you may not have to pay it back.
Can I dispute the overpayment decision?
Yes. You can ask the council to look at the decision again. This is called a "request a revision". If you are still unhappy, you can appeal to an independent tribunal.
Step one, request a revision: You have one calendar month from the overpayment decision. Write to the council and ask them to look at the decision again. Say clearly why you think the decision is wrong. For example, that you did report the change on time. Or that the amount owed has been worked out wrong.
Step two, appeal: The council may keep its decision the same after the revision. If so, you can appeal to the First-tier Tribunal (Social Entitlement Chamber). The tribunal is separate from the council. You must appeal within one month of the revision decision.
Citizens Advice and welfare rights services can help you. They can help you write the request for revision. They can also help you get ready for an appeal if you need one.
How can the council recover the overpayment?
If the overpayment is confirmed, the council can get it back by:
- Deducting from future housing benefit payments
- Taking it from your other benefits (by arrangement with DWP, in some cases)
- Court action in more serious cases
There is a limit on how much they can take from your ongoing housing benefit. There is a maximum weekly deduction amount. This stops the repayment from making you homeless straight away.
What if I can't afford to repay?
The overpayment may be confirmed. You may truly not be able to pay it back at the rate the council wants. If so, ask them to lower the repayment rate. Write to the council's housing benefit team. Explain your money situation. The council is allowed to agree a lower rate when this is fair.
Your overpayment may be taken back through deductions from Universal Credit. If so, contact DWP and explain your situation.
How does this relate to housing disrepair?
You might get a housing disrepair compensation payment from your landlord. You may worry that this affects your housing benefit or Universal Credit housing element. In most cases, a one-off compensation payment is treated differently from income. See our guide: /help-centre/will-a-disrepair-payout-affect-my-universal-credit.
When should I contact Support for Tenants?
Support for Tenants helps with housing disrepair claims, not benefit disputes. Is your home in disrepair and your landlord has not fixed it? Call us on 0800 030 4669.
For benefit overpayment advice, contact Citizens Advice (0800 144 8848) or a local welfare rights service.
No upfront cost. You only pay if you win, and the fee comes out of the compensation, not your pocket. If you don't win, you pay nothing.
Sources
- Social Security Administration Act 1992 (recovery of overpayments) (legislation.gov.uk)
- Housing Benefit Regulations 2006 (legislation.gov.uk)
Related articles
- Help with rent arrears and housing benefit
- Universal Credit, housing element paid direct to landlord
- Will a disrepair payout affect my Universal Credit?
We review every guide at least twice a year and update it when the law changes. If you spot something out of date or wrong, email help@supportfortenants.co.uk.
Reviewed against current housing law for England and Wales as at 15 June 2026. Checked by our SRA-regulated panel solicitors. This is general information, not legal advice for your specific case. Any compensation figures or ranges shown are illustrative only, not a promise; every case is different.
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