Good morning

Overview

A recent case involving a Calvay Housing Association (CHA) tenant highlights the significant value that a skilled Welfare Rights Officer (WRO) brings to both tenants and their landlord.

The tenant, who had migrated to Universal Credit (UC) last year, lives alone in a 4‑bedroom property. Due to under‑occupation, she was subject to a 25% reduction in the housing element. To mitigate this, the WRO submitted a Discretionary Housing Payment (DHP) request to the local authority.

However, when reviewing the DHP application, the Council undertook a retrospective examination of earlier Housing Benefit (HB) awards. This led to the discovery of an HB overpayment of £1,300, backdated to 2015, on the basis that household changes had not been reported at the time.

Faced with this unexpected liability, the WRO sought guidance from UC Advice & Advocacy on how best to respond.

Recommended Approach

After reviewing the facts, UC Advice recommended a strategy based on two key regulatory principles:

Underlying Entitlement – HB Regulation 104

Where an overpayment is identified, the Council must offset any HB that would have been payable had the correct information been known and applied at the relevant time. In Scotland, under‑occupation penalties are routinely mitigated by DHP awards, meaning that—if the departure of family members had been reported timeously—the tenant would almost certainly have received DHP support to offset the shortfall. Thus, an offsetting calculation was appropriate.

Discretion to Recover – Section 75(1) of the SSAA 1992

Even where an overpayment is technically recoverable, the authority may, but is not required to, pursue recovery. Factors such as financial hardship, long‑term dependence on benefits, and vulnerability should all be weighed before deciding to recover in full. UC Advice drafted a model email that the WRO could send to the Council requesting:

  • An offsetting calculation under Reg. 104
  • Consideration of discretion to waive or reduce the recoverable amount
  • A review by a more senior decision‑maker if required

Outcome

The WRO submitted the recommended representation, and the Council accepted the proposition, adjusting their decision accordingly. The WRO reported back that the Council had backdated the relevant support, resolving the issue successfully.

Why This Case Matters

This case illustrates several important points for member organisations:

  1. A knowledgeable WRO can navigate complex regulations—HB Reg. 104, discretionary recovery rules, and UC/DHP interactions—ensuring tenants receive fair treatment.
  2. Without informed challenge, the tenant would have faced a sizeable debt which would have taken years to repay.
  3. By employing a skilled WRO, Calvay HA not only safeguarded the tenant’s well-being but also protected rental income streams and strengthened the Association’s relationship with its residents. Effective Welfare Rights support enhances tenancy sustainment, reduces arrears, and fosters trust between tenants and landlords.

If you wish further information on this case or any other HB or UC topic, contact bill@ucadvice.co.uk

Regards

Bill Irvine

UC Advice & Advocacy Ltd

Tel: 07733 080 389