More than £3 million overpaid in housing benefit in Shropshire
Housing benefit overpayments in Shropshire reached more than £3.4 million last year, according to new figures.
The Revenue and Benefits Service has confirmed that for 2016/17 overpayments of £3,417,788 were made, with £3,265,991 recovered.
A report, which was drafted for Shropshire Council's audit committee, states that £229,333 was written off.
It reveals that from April to August this year there have also been overpayments of £680,623, with £655,554 recovered and £50,062 written off.
The authority says there are a number of reasons for overpayments, which are increasing across the country.
They include a new monitoring system which identifies the overpayments.
The report also gives an update on the total of outstanding debt owed to the council which has reduced by around £200,000.
The total outstanding was £6 million on August 2, compared with £6.2 million on July 31 last year.
A report prepared by council officer Phil Weir states that debt is being monitored monthly.
It states: "We have re-organised outstanding sundry debt into meaningful enforcement stages to easily identify what action is currently being taken in respect of each debt, and automate our enforcement procedures.
"These include where debt is being recovered from DWP benefit, where debt is with an enforcement agent, where there is a payment arrangement etc. We have also recently taken advantage of Direct Earnings Orders, which allow us to attach earnings where people are working. Debt at each enforcement stage is monitored monthly to ensure appropriate action is being taken."
Mr Weir said that can be debt written off for a number of reasons.
He said: "An overpayment is recoverable if: it arose because of ‘official error’ and the claimant or someone acting on their behalf could reasonably have been expected to realise it was an overpayment; it is due to an error (or fraud) of the claimant or third party; it is no one’s fault.
"If an overpayment does not meet this criteria it may not be recoverable and would ultimately be written off.
"In addition the council has a degree of discretion whether to recover an overpayment and will always take into account personal circumstances and vulnerability. This could lead to sums being written off."
