Council tax and housing benefit overpayment nightmares!

[TracyD]

Hi everyone. Thanks for the add Legal Beagles. I am a full time student and have been since 2011. I was working as well until August 2013 but as this is my final dissertation year I left work due to then pressuring me to work diff hours and days here and there but I have 3 kids so couldn't juggle childcare. Long story short I accidentally didn't declare my student loans when I was working and now they say I owe £4.990 in hb overpayments and £1200 council tax! I don't think they have not looked at £693 annual
notional disregard and £10 per week thereafter and now sending letter to
Ombudsman at council to look at. They asked me for interview under caution but declined due to the venue being my old workplace and also felt very humiliated when I saw work colleagues outside benefit fraud teams office . What do I do? I'm scared that bailiffs will come out as my first payment of £322 is due on the 7th of December and I do not have the funds as a) they have stopped my
housing benefit and I'm already a month behind on rent and also after speaking to
a fellow student who works part time and gets full student loans, doesn't have to pay council tax!

[Inca]

Re: Council tax and housing benefit overpayment nightmares!

Hi + to LegalBeagles.

By declining an IUC it seems you have been found guilty in your absence.
First things first tho.....are you entitled to any Housing or Council Tax Benefit now?,if you are entitled to claim then do so,,quickly.
They will take an amount to repay the debt but that has to be 'reasonable'.

My best advice is..make an appointment and go to see the Benefits Team at your local council,,get it sorted out...

If possible,,could you put the events in a chronological order so it's easier for us to work out a timeline for you?

Thanks x

[bluebottle]

Re: Council tax and housing benefit overpayment nightmares!

Declining an interview under caution does not, in itself, amount to an admission of guilt, but Inca has hit the nail on the head with regard to the local authority's attitude.

If there is a suspicion the local authority has, to put a finer point on it, cocked-up, then they need to sort it out and, if necessary, wind their necks back in. Mistakes do happen and, in many cases, local authorities would save a lot of time and money if they sorted them out quickly. Those who don't and have legal action taken against them really should be investigated and those responsible shown the door. Whilst it may be public money they are dealing with, wasting it to cover up blunders is unacceptable.

[MissFM]

Re: Council tax and housing benefit overpayment nightmares!

Hi everyone. Thanks for the add Legal Beagles. I am a full time student and have been since 2011. I was working as well until August 2013 but as this is my final dissertation year I left work due to then pressuring me to work diff hours and days here and there but I have 3 kids so couldn't juggle childcare. Long story short I accidentally didn't declare my student loans when I was working and now they say I owe £4.990 in hb overpayments and £1200 council tax! I don't think they have not looked at £693 annual
notional disregard and £10 per week thereafter and now sending letter to
Ombudsman at council to look at. They asked me for interview under caution but declined due to the venue being my old workplace and also felt very humiliated when I saw work colleagues outside benefit fraud teams office . What do I do? I'm scared that bailiffs will come out as my first payment of £322 is due on the 7th of December and I do not have the funds as a) they have stopped my
housing benefit and I'm already a month behind on rent and also after speaking to
a fellow student who works part time and gets full student loans, doesn't have to pay council tax!

Am querying this because I don't understand. Loans surely would not be classed as income even in the strange times we live in?

[Inca]

Re: Council tax and housing benefit overpayment nightmares!

Yep MissFM..from what I can gather Student Loans are classed as income for the purposes of Housing Benefit etc.

Also..OP was working as well as getting SL which would take her over the limit for means tested benefits.
OP should contact the benefit agencys pronto to get this sorted and get repayments set at a sensible level and also check if she has entitlement to benefits now she is not working (child tax credits,IS,HB and CTB)

BB I couldn't think of another way to put my point about 'guilty in absence' but hope you got the gist of what I was trying to say. Refusing to attend an IUC is never a good idea.

[enaid]

Re: Council tax and housing benefit overpayment nightmares!


Which types of student finance are counted as income when working out benefits?


http://www.nidirect.gov.uk/index/information-and-services/money-tax-and-benefits/benefits-and-financial-support/on-a-low-income-1/which-types-of-student-finance-are-counted-as-income-when-working-out-benefits.htm

[enaid]

Re: Council tax and housing benefit overpayment nightmares!

Hi Tracy and welcome, above I have posted a list of student loans and which are and are not classed as income when working out benefits.
If your loans are counted then yes it looks like you have had an overpayment and you will be required to pay this back. You should have and still can I would think ask for a different venue for an interview.
I would ask for a breakdown of the amounts they say you owe and then arrange a payment plan that you can comfortably afford and stick to.
You say you are scared bailiffs will be involved well sad to say but they will be if you bury your head over this.
Enaid x

[ploddertom]

Re: Council tax and housing benefit overpayment nightmares!

As others have said you appear to have been found "guilty" in your absence & the Council have likely set payments at a high level without due regard to your income, therefore in my opinion you should appeal to them about this and ask for an affordable payment.

[TracyD]

Re: Council tax and housing benefit overpayment nightmares!

Hi everyone. My housing benefit still stopped which put me 3 months behind with my rent so 2 thirds of my student loan paid my rent so I still have a roof over my head but they are still in the process of "working it all out". They have asked for lots of information and I have provided everything requested of me. They have kindly put bailiffs on hold with regard to the council tax but because of panic and worry I also used some of my student loan to pay the first £322 council tax overpayment and then the letter saying bailiffs had been put on hold came the next day. I am hoping this matter can be resolved when I send my p45 and student disregard form in today. Christmas was quite dire given I couldnt afford anything much for my children but hopefully when I graduate, I can get a decent job with a good enough salary to survive and afford some luxuries. I still do not know if they are going to prosecute me or offer me an caution but still stressed about the possibility of a criminal record . Thanks for all your advice, I really appreciate it all.