If you are told you owe housing benefit back because of an overpayment, you have the right to dispute this decision. Overpayment notices can be confusing and
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If you are told you owe housing benefit back because of an overpayment, you have the right to dispute this decision. Overpayment notices can be confusing and frightening, but there are clear steps you can take to challenge them. Below, we go through how housing benefit overpayments work and what you can do.
What is a housing benefit overpayment?
A housing benefit overpayment occurs when the council or DWP has paid more housing benefit than you were entitled to. 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 factored in correctly
- A family member moved in whose income affects your entitlement
- You received a capital payment (such as a compensation settlement) that took you above the savings limit
Who is responsible for repaying?
Responsibility for repaying a housing benefit overpayment depends on why it occurred and to whom the benefit was paid:
If the benefit was paid to you: You may be asked to repay it, unless the overpayment was caused by 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 recover the overpayment from the landlord if it was paid to them, even if the underlying cause was a change in your circumstances.
Official error: If the overpayment was caused entirely by an error by the council or DWP, and you reported the relevant change at the right time, the overpayment may not be recoverable from you.
Can I dispute the overpayment decision?
Yes. You have the right to ask the council to reconsider ("request a revision") and, if you are still unhappy, to appeal to an independent tribunal.
Step one, request a revision: Within one calendar month of the overpayment decision, write to the council asking them to look at the decision again. Set out clearly why you think the overpayment decision is wrong, for example, that you did report the change of circumstances on time, or that the amount owed has been calculated incorrectly.
Step two, appeal: If the council upholds its decision after revision, you can appeal to the First-tier Tribunal (Social Entitlement Chamber). The tribunal is independent of the council. You must appeal within one month of the revision decision.
Citizens Advice and welfare rights services can help you draft the request for revision and, if needed, prepare your appeal.
How can the council recover the overpayment?
If the overpayment is confirmed, the council can recover it by:
- Deducting from future housing benefit payments
- Taking it from your other benefits (by arrangement with DWP, in some cases)
- Pursuing court action in more serious cases
The rate of deduction from ongoing housing benefit is limited, there is a maximum weekly deduction amount that prevents the repayment from making you immediately homeless.
What if I can't afford to repay?
If the overpayment is confirmed and you genuinely cannot afford to repay at the rate the council is proposing, ask for a reduction in the repayment rate. You can do this by writing to the council's housing benefit team and explaining your financial circumstances. The council has discretion to agree a lower rate where this is justified.
If the overpayment is being recovered through deductions from Universal Credit, contact DWP and explain your circumstances.
How does this relate to housing disrepair?
If you receive a housing disrepair compensation payment from your landlord, you may be wondering whether 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 rather than benefit disputes. If your home is 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 for disrepair claims. You only pay if you win, and the fee comes out of the compensation. 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 and not guaranteed; every case is different.
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