Debt Recovery Guidance for council tax, business rates and sundry debts

These are recovered in accordance with Housing Benefit Regulations 2006.

Overpayments occur because a customer has been paid too much benefit and so the Council's aim is to try and prevent this from happening. We have the following measures in place:

• customers being supported through the application process to ensure they are paid the right amount of benefit
• the use of leaflets, website & letters to reinforce customer's responsibility to notify us immediately of any changes in circumstances which are then dealt with promptly

Once a Housing Benefit overpayment has been created the Council will normally collect from on-going housing benefit where it is in payment. Recovery rates are set by Department for Work and Pensions (DWP) and, initially, we will always apply the maximum recovery rate permissible. Staff have the discretion to reduce the recovery rate or suspend deductions if the customer can show that this would cause unreasonable hardship, for instance, where a customer is unable to pay their rent.

Where there is no on-going housing benefit we will issue an invoice for payment. A customer has one month to pay before further recovery action. To prevent recovery action, we:

• offer a wide choice of payment options
• encourage and support customers to make an arrangement
• provide up to date advice on our website
• do not refuse any payments which reduces the debt - however, if it is less than the requested amount recovery action may continue

 If after one month the invoice remains unpaid and no arrangement has been agreed, then a first reminder will be sent giving 7 days to pay. If no payment or contact is made within a minimum of 7 days, then a second reminder is sent giving a further 7 days to pay. If the debt remains unpaid, we will consider taking the following actions:

• deduction from certain DWP benefits
• by applying to another local authority for them to deduct from the customer's on-going housing benefit
• recovery from their landlord where the landlord is now being paid for a current tenant
• direct earnings attachment
• applying to the County Court
• use debt collection agencies to recover on our behalf

Some benefit overpayments are not recoverable. These arise if we or the DWP, make an error where the customer to whom the benefit was paid, cannot reasonably have been expected to know they were receiving benefit to which they were not entitled.