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next year’s overpayment recovery rates
have the recovery rates for the new year been announced yet?
SeeHB Regulation 102(2)(3)(4) and (5)
(2) Subject to paragraphs 3 (4) and (5), where a relevant authorit makes deductions permitted by paragraph (1)2or (1ZA) from the housing benefit it is paying to a claimant 2or a claimant’s partner (other than deductions from arrears of
entitlement), the deduction in respect of a benefit week shall be–
(a) in a case to which paragraph (3) applies, not more than the amount there specified; and
(b) in any other case, not more than three times five per cent. of the personal allowance for a single claimant aged not less than 25, that five per cent being, where it is not a multiple of five pence, rounded to the next higher such multiple.
(3) Where1a relevant authority makes deductions from housing benefit it is paying to a claimantor a claimant’s partner, where the claimant has, in respect of the whole or part of the recoverable overpayment–
(a) been found guilty of an offence whether under a statute or otherwise;
(b) made an admission after caution of deception or fraud for the purpose of obtaining relevant benefit; or (c) agreed to pay a penalty under section 115A of the Administration Act(a) (penalty as an alternative to prosecution) and the agreement has not been
withdrawn, the amount deducted under paragraph (2) shall be not more than four times five per cent. of the personal allowance for a single claimant aged not less than 25, but where that five per cent. is not a multiple of 10 pence, it shall be rounded to the nearest 10
pence or, if it is a multiple of 5 pence but not of 10 pence, the next higher multiple of 10 pence
.
(4) Where, in the calculation of housing benefit, the amount of earnings or other income falling to be taken into account is reduced by reason of paragraphs 3 to 10 of Schedule 4 (sums to be disregarded in the calculation of earnings) , or paragraph 10A of that Schedule in a case where the amount of earnings to be disregarded under that paragraph is the amount referred to in regulation 45(2) of the Employment and Support Allowance Regulations or regulation 17(2) of the Social Security (Incapacity
for Work) (General) Regulations 1995), or paragraph 14 or 15 of Schedule 5 (sums to be disregarded in the calculation of income other than earnings), the deduction under paragraph (2) may be increased by not more than half the amount of the reduction
.
(5) No deduction made under this regulation 2 shall be applied so as to reduce the housing benefit in respect of a benefit week to less than 50 pence
In other words, the deductuions are linked to the applicable amount for a claimant aged over 25 and to certain income disregards.
The deductions don’t need to be announced.
The applicable amount for a person aged over 25 weill be £67.50, 5% of this is £3.375 (rounded up to the next 5p its £3.40.) Three times £3.40 is £10.20 and so that will be the maximum deduction for someone wihtout any income that is subject to the prescribed disregards, and who has not admitted or been convicted of fraud.
[ Edited: 9 Mar 2011 at 11:36 am by Stainsby ]hi
para 41 of HB/CTB Circular A26/2010 -
‘40 The standard maximum weekly rate of recovery from continuing HB is increasing from £9.90 to £10.20 from April 2011. Similarly, the maximum weekly rate of recovery from continuing HB, when the overpayment has arisen as a result of fraud, (as defined in Reg 102(3) of HB Regulations 2006 and Reg 83(3) of HB (SPC) Regulations 2006) has increased from £13.20 to £13.60.’
here’s link to rightnet news story -
http://www.rightsnet.org.uk/news/story/benefit-uprating-2011-20121/
cheers ros
thanks all, very helpful
Sorry to be stupid. But why maximum of 3 (or 4) 5% rather than maximum of 15%. Unless it is 5% for each non dependent (which would make sense, so is unlikley to be the case, common sense and the benefits system usually being oposites).
Sorry to be stupid. But why maximum of 3 (or 4) 5% rather than maximum of 15%. Unless it is 5% for each non dependent (which would make sense, so is unlikley to be the case, common sense and the benefits system usually being oposites).
What have non-dependants have to do with the rate of overpayment recovery?
I am sure there is a logical reason behind 3x5% it is just beyond the knowledge of mere mortals.
Sorry to be stupid. But why maximum of 3 (or 4) 5% rather than maximum of 15%. Unless it is 5% for each non dependent (which would make sense, so is unlikley to be the case, common sense and the benefits system usually being oposites).
What have non-dependants have to do with the rate of overpayment recovery?
I am sure there is a logical reason behind 3x5% it is just beyond the knowledge of mere mortals.
Whoops, seem to have non dependents on the brain at the moment. A lot a round at the moment, result of people losing employment and moving back in with parents.
perhaps 5% per overpayment, perhaps not.