Map reveals worst councils for sending bailiffs to chase overpaid housing benefit – how to challenge it
A MAP has revealed the worst local authorities for sending bailiffs to chase overpaid housing benefit.
Around 2.7million households in England and Wales had a knock at the door from debt collectors last year, research by the Money Advice Trust shows.
Nearly 12,000 of these visits were due to councils deploying bailiffs to recover overpaid housing benefit.
Around 2.3million Brits claim the benefit which helps pay your rent if you’re unemployed, on a low income or claiming other benefits.
It can also be used to help cover an services charges or ground rent.
The exact amount you get depends on the size of your property, your income and any other special circumstances like a disability.
The benefit is overseen by the Department for Work and Pension (DWP), however it’s administered by your local authority.
Housing benefit for those under the State Pension age (66) is being gradually replaced by the housing element of Universal Credit.
This means only those aged 66 and above can make a new claim.
Despite this, the DWP reports that £445million of housing benefit had been overpaid to claimants last year.
Although the majority of claimants agree to repay their debt, local councils have secured thousands of County Court Judgments (CCJs), which empower bailiffs to visit claimants’ homes.
Carmarthenshire County Council referred the most claimants, with bailiffs sent to 1,025 customers with housing benefit repayment demands.
The Royal Borough of Greenwich referred 718 customers, and Salford City Council 653.
Colchester City Council also referred 586 claimants to debt collectors.
The councils mentioned were contacted for comment.
However, 196 of the 318 English and Welsh Councils did not refer any customers to debt collectors.
For example, Hammersmith and Fulham Council have completely eradicated the use of bailiffs when recovering benefit overpayments.
Instead, the council said it intervenes early when people start to fall behind and helps them access all the support and advice available to them.
Only around half (48%) of all English and Welsh councils have a formal policy in place to recognise and assist residents in vulnerable circumstances, Money Advice Trust found.
This might include help like additional time to repay, referrals to wider support services or pausing chasing the debt.
However, all councils say they refer those in debt to charities for help.
This includes the Citizens Advice Bureau and debt charity StepChange.
Dealing with bailiffs and enforcement agents
IF you haven't paid a debt you might be sent a letter from bailiffs (also called enforcement agents) saying they will visit your home to collect payment.
Bailiffs (also known as enforcement agents) must give you at least seven days’ notice before their first visit, unless they are collecting unpaid criminal fines, taxes, or certain debts owed to HMRC.
They can only visit between 6am and 9pm, unless they have a court order stating otherwise.
Bailiffs must show you identification and explain why they are visiting.
They should provide a written notice detailing the debt and the amount owed.
They cannot force their way into your home on their first visit.
They can only enter through a door, and they must be invited in.
They are not allowed to climb through windows or use force to break in. However, once they have been invited in, they can enter again using reasonable force if necessary.
If you or someone in your household is considered vulnerable (due to age, disability, or serious illness), you should inform the bailiff and the creditor.
Bailiffs must take this into consideration and act accordingly.
Bailiffs can take luxury items, such as TVs and gaming consoles, but they cannot take essential items like clothing, bedding, or basic kitchen equipment.
They also cannot take items that belong to someone else, such as your partner or children.
You have the right to negotiate a payment plan with the bailiff.
If you can pay off the debt or come to an agreement, the bailiff may not need to take any of your possessions.
If you believe a bailiff has acted unlawfully or inappropriately, you can file a complaint with the company they work for or escalate it to a professional body, such as the Civil Enforcement Association (CIVEA) or the court that issued the warrant.
If you are unsure of your rights or need assistance, seeking legal advice from a solicitor or a debt advice charity can be beneficial.
What is a housing benefit overpayment?
A housing benefit overpayment occurs when a claimant receives more cash for housing costs than they are entitled to.
This can occur if their circumstances change, like if they earn more money or someone moves in or out, and they don’t tell the council quickly.
The extra money must be paid back to the council.
However, if the overpayment was due to an official error and the person couldn’t have known about it, they don’t have to repay it.
Local authorities should send a claimant a decision notice to the person who needs to repay any housing benefit.
This notice will explain how much is owed and why the overpayment happened.
The council will also tell you how to ask for more information or appeal the decision if you disagree with it.
How are overpayments recovered?
If the council paid your housing benefit directly to your private landlord, they can take back the overpayment by reducing future payments to your landlord.
If you are a council tenant, this doesn’t apply.
However, the council might add the overpayment as a debt to your rent account.
If you contact your council, they can also set up repayment plans to help you better manage the debt.
However, as unpaid housing benefit overpayments are considered a ‘civil debt’, local authorities have the power to take more drastic action if you refuse to repay your benefits.
For example, your council can ask your employer to deduct any housing benefit overpayments you owe us from your salary.
This is called a direct earnings attachment (DEA).
If you can’t agree to repay the benefit or you fail to correspond with your council, they can take you to court and obtain a County Court Judgment (CCJ).
If you don’t comply with the court order, the council can instruct bailiffs to take control of your goods.
This could include removing and selling your personal items.
A CCJ will affect your credit rating and remain on your credit file for up to six year.
How to get free debt help
There are several groups which can help you with your problem debts for free.
- Citizens Advice – 0800 144 8848 (England) / 0800 702 2020 (Wales)
- StepChange – 0800138 1111
- National Debtline – 0808 808 4000
- Debt Advice Foundation – 0800 043 4050
You can also find information about Debt Management Plans (DMP) and Individual Voluntary Agreements (IVA) by visiting MoneyHelper.org.uk or Gov.UK.
Speak to one of these organisations – don’t be tempted to use a claims management firm.
They say they can write off lots of your debt in return for a large upfront fee.
But there are other options where you don’t need to pay.
Can I challenge a housing benefit overpayment?
You can challenge a housing benefit overpayment by asking the council to look at their decision again, which is called a revision.
Check your council’s website or call them to find out how to request this.
Explain why you think the decision is wrong and provide any evidence you have.
If the council changes the decision, you might owe less or nothing at all.
If you are not happy with the revision outcome, you can appeal to the First-tier Tribunal.
The First Tier Tribunal will decide if you are legally entitled to a benefit and can change a decision if they think it is wrong.
HELP FOR RENTERS
Rental costs are at their highest levels – but there is help for households struggling to keep up with their spiralling bills.
A recent report by property firm Hamptons said the average rent for a newly let property in Britain hit a new high of £1,384 per month in September, although the pace of growth slowed.
Annual rental price growth was 4.5% in September, slowing from 5.0% in August and 11.7% in September 2023.
If you are struggling with your living costs, there are schemes out there that might be able to help you out.
Discretionary housing payments
Discretionary housing payments (DHP) can help low-income households cover their housing costs.
This can include one-off payments to cover short term rental costs, be put towards a rent deposit on a new property or even rent in advance.
For those with disabilities, it can also be used to cover the costs of adapting your home to meet your health needs.
The payment does not cover things like bills or council tax on the home you live in.
In total last year, 175,000 households in the UK received a slice of the £100million available as part of the scheme – making the national average payout £634.
The exact amount you get depends on where you live as each local authority dishes out the cash on a case-by-case basis.
Find out what’s on offer in your area by visiting gov.uk/find-local-council.
Welfare assistance schemes
Many local authorities also have welfare assistance schemes in place.
Help varies from free cash and food vouchers to money towards rent and energy bills.
Some areas offer up to £1,000, whereas some councils do not have any scheme in place at all.
Household Support Fund
The Household Support Fund (HSF) is another council scheme that is designed to help struggling families with rising living costs.
As with the other government schemes, what you get and how much you can get vary depending on where you live.
Most local council websites have details of what is on offer and how you can apply.
For example, locals in Herefordshire can get up to £500 in cash paid directly to their bank accounts to help with living costs.