I have come across an overpayment recovery where the local authority (LA) has ‎decided to recover an overpayment from us, the actual overpaid period was ‎already having an £8.40 deduction.‎

For example:

The weekly entitlement was 100.00 per week, but there was a deduction of £8.40, which ‎meant we were only paid £91.60 per week (£366.40 for 4 weeks)

The tenant's benefit ceased due to vacation and 4 weeks were overpaid, the LA now ‎wishes to recover £400.00 for this period. I requested a review of this amount as they had only paid ‎us £366.40 for this period and not £400.00. By recovering the 'entitlement awarded' as ‎opposed to the 'amount paid', it is correct that the LA would be recovering the £33.60 ‎twice?‎

The LA does not agree with me, as the entitlement remains the same and want the full ‎amount back. I cannot see their point. Can anyone enlighten me with a simply ‎explanation if I am wrong.

Sorry if this has been posted before...

This doesn't directly answer your question- sorry, but why did hb stop because the client went on vacation? so long as it was for less than 13 weeks and (s)he didn't sub let benefit entitlement shouldn't have stopped.

Vacation means - left the property, ie vacated the property.
Anyway the LA can only recover the money that they have paid to you.
I'd pay them what they paid you and then tell them if they want any more money, invite them to sue you in the County Court.

Oops yes read that wrong...

I agree, they can only recover the amount actually paid to you. The other amount that went to recover the previous overpayment was effectively paid to the tenant (unless that amount was paid to you in the previous overpayment as well)

I think you should appeal the decision.

Thank you all - much appreciated.

It is possible for me to only pay back the 'paid to us' amount when the LA do not have a bulk schedule deduction process going on, However, if they do have this procedure of recovering, they then deduct the money before you can say "Boo"!

Oh well, appeals service, here I come...

They are wrong. You can only be asked to repay the amount you were initially paid.

I have a feeling this is covered in the DWP's overpayment guide.

The original £8.40 deductions must have been for an overpayment which they were recovering from the claimant. Now that the entitlement wasn't due for this period, those deductions are still payable by the claimant (probably as a further overpayment of 4 weeks at £8.40).

reg 98 - meaning of 'overpayment' - any amount which has been paid by why of housing benefit and to which there was no entitlement...

you cannot be overpaid more than you were paid.

If they do try to recover via bulk deduction, I would consider suing for restitution in the county court, (and of course adding all your costs to the amount claimed)

The money involved might not be huge but it would serve as a warning to your LA thatthey are not a law unto themselves and they must face consequences if they adopt bullying tactics.