A pensioner has been overpaid because she did not declare her occupational pension as well as her husbands. The overpayment is for £16844.12 and they are not entitled to benefit because they have a weekly income of £308 per weeek. Can the tenant offer the LA £40 a month to repay the overpayment, or will the LA have a figure in mind that needs to be paid on a monthly basis.

The tenant can offer what they like, but it is likely the LA will want them to complete an income and expenditure form before deciding on what recovery level is appropriate.

I would suspect that given the size of the overpayment and the weekly income of the couple concerned, the LA will want more than £40.00 per month. If my maths are right the overpayment would take over 35 years to recover at that rate.

Given the fact that they are no longer receiving HB the recovery will be by invoice and the maximum recovery rates that apply to recovery from on going entitlement will not apply here.

If the claimant was on HB, then standard recovery if being deducted from ongoing benefit entitlement would be £8.70 per week or £11.70 per week if due to a fraud overpayment.

That aside, it is a case of negotiating a repayment that is going to be accepted by both.

Jeff beat me to it again!

She should seek the services of a debt adviser to draw up any financial statement and not do it her self. Local CAB will be a good starting point.