25 Apr 2016

A question about : Housing benefit

I currently get housing benefit and have renewed my tax credits which have now give up. Obviously the tax credits back date to the beginning of the tax year and will presume housing benefit will to so will have an overpayment from then until now. What happens about the lump sum I have received as tax credits didn't pay enough last year. Will I owe an overpayment for that as well?

Best answers:

  • Bump. Anyone?
  • Er I don't get it hun
    You renewed TC, and you payments have gone up? Or you have received a lump sum?
  • Both now I know my increase in tax credits this year will cause an overpayment of HB from April until now. But I have also had a lump sum as they didn't pay me enough last year. So now I am worried that the HB people will recalculate my housing benefit for all of last year based on this lump sum or will they not take that into account?
  • Yes, there is likely to have been an HB overpayment, but you won't get into trouble about it, you were not aware at the time. Advise them of the change, and they can recalculate for this year and last.
  • Thank you. It's such a complicated system I could do without the deductions things are tight enough but hey ho
  • The tax credits lump sum you have received will cover any hb you were over payed with probably a little to spare, it evens itself out.
    overpaid! my bad spelling
  • If its child tax credits it shouldn't affect HB however working tax credits will hth
  • It's child tax credit we don't qualify for working tax credit.
  • From what I can see on the web page all tax credits are included.
  • all tax credits are taken into account. we only get CTC and they're taken into account. Why not? they're income after all!
  • Dear xmaslolly76,
    We are sorry that we can not give you a definitive answer on this issue, as we do not have enough information about your dilemma.
    However, you should notify as soon as possible your local authority about any changes of circumstances which could affect your benefit entitlement. If you are not sure whether to report a change, you should do so anyway. If you do not inform about your changes of circumstances, it may lead you to either overpayment or underpayment.
    If this issue leads to an overpayment and causes financial hardship, then please negotiate with your landlord a reasonable repayment schedule.
    If you have further problems with this issue, please do not hesitate to contact your local Citizens Advice Bureau. You can find it on the link below: https://www.citizensadvice.org.uk/index/getadvice
  • Yes they are included but also on the housing benefit award letter you will see where its worked out it will say amount to live on X, extra because you have X amount of children living with you X amount (usually this is what you would receive in child tax credits) and then other income and it works out your entitlement. What I'm saying is even though it counts its canceled out by the amount you get to live on and the extra for children.
    The best thing you can do is call and ask them.
  • Quick update it would appear that tax credits automatically update housing benefit people the increase in my tax credits has effected my claim by about the same amount as my tax credits have gone up so I'm no better or worse off but there was no over payment and the lump sum wasn't taken into account so all round a pretty good result.
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