Overpaid Housing Benefit

Housing Benefit overpayments

If you have been paid too much housing benefit then this is known as an overpayment.

This could happen because did not tell us about a change in your income, savings or household circumstances, or that you were late in telling us of a change.

A fraudulent overpayment occurs if you deliberately provided a false statement or document or deliberately failed to report a change of circumstances with the intention of obtaining or retaining benefit.

You must tell us about changes in your circumstances yourself, as soon as possible. Don't rely on anyone else to tell us. Even if you have told another office such as the Department for Work and Pensions (DWP), you must still tell us and not leave it to them to tell us.

How we recover Housing Benefit overpayments

We will either make a weekly deduction from your Housing Benefit until the overpayment is cleared or send an invoice. If you are no longer receiving Housing Benefit and have not arranged to pay back the overpayment, we can make deductions from other state benefits you receive.

If you are still receiving Housing Benefit, we will reduce your future Housing Benefit payments by an amount deducted each week to pay back the overpayment, until the balance is cleared. You will be notified of this before the deductions start.

The standard rate of overpayment recovery from 1st April 2025 is £13.95 per week. A higher rate of £23.25 per week applies for overpayments caused by fraud. This may be increased if you are working.

You will need to increase the amount you pay your landlord for your rent by this amount, otherwise you will fall into rent arrears. You are responsible for paying this shortfall to your rent.

In exceptional circumstances we may temporarily reduce the amount that is recovered. To request a reduction please complete an Income and Expenditure form and send it to benefits@milton-keynes.gov.uk

You will receive an invoice for the overpayment and this is due to be paid in one amount by the date shown on the invoice.

If you are not able to make full payment, you should contact the Recovery Team on 01908 254955 (option 2) , or by emailing hbrecovery@milton-keynes.gov.uk or by completing our Online Arrangement Form. before the invoice is due for payment to make alternative arrangements. If you are having difficulties paying you can also ask us about options to pay by weekly or monthly instalments. Our lines are open between 9am and 5pm Monday, Tuesday, Thursday & Friday and 10am to 5pm on Wednesdays.

You can also complete an Income and Expenditure form and send it to hbrecovery@milton-keynes.gov.uk together with your offer of repayment.

Details of help that is available if you are experiencing financial difficulties is available on our Cost of Living webpage.

If you are receiving certain state payments from the Department for Work and Pensions (DWP) we may ask them to make deductions from your benefit in order to repay the overpayment to us. Examples of benefits that we can ask for deductions from are Universal Credit, Job Seekers Allowance, Pension Credit, Employment Support Allowance and Personal Independence Payments.

Your employer has a legal responsibility to set up deductions from your salary and pay the amount that is due to Milton Keynes City Council in accordance with Part 6 of the Social Security (Overpayments and Recovery) Regulations 2013

For employers use only - Direct Earnings Attachment Acknowledgement Form

The information provided on the above form must come from your employer otherwise it will be disregarded.

How do I pay my Invoice?

This is the quickest and easiest way to pay your invoice.

Pay my invoice online

Select ‘Housing Benefit Overpayment’ and enter your 10-digit invoice number, the amount you want to pay, together with your payment card details. This service is available 24 hours a day.

You can call our 24-hour payment line, 0300 131 5555 and select option 4. You will need your 10-digit invoice number, the amount you want to pay, together with your payment card details.

You can make regular monthly payments by Direct Debit on either 1st or 20th of each month. Call us on 01908 254955 option 2 to set up a Direct Debit. Our lines are open between 9am and 5pm Monday, Tuesday, Thursday and Friday and 10am to 5pm on Wednesdays.

You can set up a standing order with your bank to make regular payments or use your bank’s internet banking or telephone banking services to pay your Housing Benefit invoice.

Payments should be made to:

Payee: Milton Keynes City Council

Bank Account Number: 37171542

Sort Code: 60-14-55 (NatWest)

Reference: please use your 10 digit invoice number

What if I don't understand the reason for the overpayment?

You can view your claim details and letters online. If you do not understand or would like more information about the overpayment, please email benefits@milton-keynes.gov.uk, stating your name, address claim reference number and the information you would like to know.

What to do if you disagree with the overpayment

You have a month from the date we first told you about the overpayment, to ask us to look at the decision again. This must be done in writing so please email benefits@milton-keynes.gov.uk, stating your name, address, claim reference number and the full reasons why you do not agree with the decision.

If we look at the decision again and you are still unhappy with the outcome, you have a further month from when we notified you of our review decision, to ask for an appeal. This must also be made in writing. For more information see our appeals page.

What will happen I don’t repay my overpayment?

If you do not pay your overpayment invoice action may be taken to:

contact your employer to make deductions from your earnings
Ask the DWP to recover from State Benefits
use Debt Collection Agents to recover the money you owe
obtain a County Court Judgement in order to instruct Enforcement Agents (Bailiffs) to take your goods, make you bankrupt or take payment directly from your bank or building society accounts.

Your credit rating may be affected and you may incur additional fees and interest

Where can I get help?

Our staff are here to help and should you get into difficulties with your repayments, please contact the Recovery Team as soon as possible on 01908 254955 (option 2) or email hbrecovery@milton-keynes.gov.uk . Our lines are open between 9am and 5pm Monday, Tuesday, Thursday & Friday and 10am to 5pm on Wednesdays.

Details of help that is available if you are experiencing financial difficulties is available on our Cost of Living webpage .

Worried about debts or have missed payments? There is free, confidential, and independent debt advice available. The government-sponsored MoneyHelper can direct you to a debt adviser straight away by telephone, or you can get support online.

If you are experiencing financial hardship and need advice on ways to increase your income, manage your debt and deal with creditors, we strongly recommend you seek advice.

Please find below the contact details for various organizations that may be able to assist you with financial and debt-related issues in Milton Keynes:

Milton Keynes Citizens Advice Bureau