Hypothesis: client who gets longterm Incapacity Ben with highest age addition was getting DLA MRC, therefore IS with SDP and full HB, loses IS and a chunk of HB when DLA goes down, applies for and gets a DHP to cover shortfall in HB while DLA is appealed, gets DLA back + backdated HB.
Can anyone tell me if the backdated HB would/could be offset against the DHP? Can there be an overpayment of DHP? I know DHP and HB are different pots of money.

Backdated HB cannot be offset against a DHP. As you say they are seperate Benefits.

There are overpayments of DHP but only where someone has misrepresented a material fact or "an error has been made when determining the application for a payment".

Itis arguable that, in the circumstances you describe, neither apply.

Thank you

If you are still mulling this one over, I had a similar scenario recently, and the DWP unhelpfully advised the LA not to decide the DHP application until the outcome of the (in this case) HB appeal. I think this was on the basis that HB can't be offset against the DHP as there's no provision for this in the regs, as far as I'm aware; (although presumably there's always the risk that DHP could be counted as "income").

I was preparing to argue that this delay (i.e. not making the decision on the DHP) was unlawful and unfair, and that in any event, the Council could come to a private arrangement that if there is "double-recovery", the claimant pays it back. The appeal was in the meantime resolved, so we did not need to run this argument.

I'd be interested to hear the outcome.

Louise