Express & Star

Stafford Borough Council overpays £2.3m in housing benefits

More than £2.3 million has been overpaid to housing benefit recipients by Stafford Borough Council.

Published

At the beginning of the financial year overpayments of £2.5 million were owed to the authority, a report has shown.

The matter will be discussed by the council's cabinet in a meeting on Thursday.

In a report to the meeting, it says that during the first three months of this financial year a further £87,000 was overpaid but £283,000 was recovered.

It also says there was one irrecoverable benefit overpayment debt totalling £4,092.40.

It adds: "The council manages the housing benefit scheme on behalf of the Department for Work and Pensions, who fund the cost of benefits paid to claimants.

"When claimants are paid more housing benefit than they are entitled to, this is called an overpayment.

"Notwithstanding the subsidy paid by DWP, the council can and is expected to, seek recovery of the overpayments from the recipients, except in the case of DWP error, or a local authority error which the claimants could not have reasonably recognised as an overpayment at the time they were paid.

"At the beginning of this financial year overpayments of £2,506,337.02 were owed to the council.

"During the first three months of this financial year, a further sum of £87,288.42 was raised but £283,987.63 has been recovered, reducing the indebtedness by £196,699.21."

In the same report it details how more than £18,000 in business rates will be written off by the council.

Cabinet is set to write off £18,038.05 which cannot be recovered in business rates and £16,068.12 in council tax debts when it meets.

Stafford Borough Council has been asked to comment.