Good morning

Some of you may recall reading an earlier bulletin concerning a Housing Benefit success, where West Granton Housing Co-operative (WGHC) successfully challenged a housing benefit refusal for one of its elderly residents. Earlier this year, the Co-op found itself navigating another complex case for one of its residents.

The journey began when a perceptive Housing Officer (HO) noticed that a pension-age tenant, despite his age, was still receiving Universal Credit, along with support for housing costs. Sensing that something was amiss, the HO sought confirmation that her conclusion was correct. It quickly became clear that the tenant’s Universal Credit award should have ended upon reaching 66.

Together, WGHC and the tenant decided to raise the matter with the Department for Work and Pensions (DWP). The DWP responded unusually promptly, cancelling Universal Credit from the tenant’s 66th birthday, but this action also triggered a £9,230 overpayment, with a demand for repayment.

Despite the DWP having the legal basis for recovering the overpayment, WGHC argued that it was DWP’s oversight—not the tenant’s mistake—that had led to the issue. The agency already knew the tenant’s date of birth and had been informed about the tenant’s State Retirement Pension, which was already being deducted from the Universal Credit award. WGHC argued that DWP should have taken the initiative to end Universal Credit and guided the tenant towards claiming Pension Credit and Housing Benefit.

The transition from Universal Credit to Pension Credit usually results in increased financial support for pensioners. In this instance, the tenant stood to gain going forward, but the question of the overpayment remained. A strict three-month backdating rule for Pension Credit and Housing Benefit meant there would still be a significant gap in past entitlement. Unfortunately, Universal Credit regulations offer no mechanism to offset the overpayment against this loss. Neither do the regulations permit DWP to write off the debt as “official error”.

Thanks to WGHC’s proactive assistance, the tenant claimed Pension Credit and challenged DWP’s lack of communication and intervention regarding his potential entitlements. This effort secured a £6,000 backdated payment—more than anticipated, but still less than what would have been due to the tenant had he made a timely claim. Plus, the overpayment remained repayable.

Recognising the unusual circumstances, WGHC asked DWP to apply a seldom-used discretionary power to reduce or waive recovery in exceptional cases. WGHC set out a compelling argument as to why their tenant should not have to repay the overpayment. At first, DWP refused, but after a direct intervention from the Co-op’s CEO, it reconsidered. In a welcome turn of events, DWP decided not to pursue recovery, leaving the tenant relieved and £6,000 better off. WGHC’s staff were rightly proud of their advocacy and the fact that persistence had paid off.

If you would like to know more about the issues in this case or would like assistance yourselves, please email bill@ucadvice.co.uk or phone 07733 080 389.

Regards

Bill Irvine

UC Advice & Advocacy Ltd

www.ucadvice.co.uk