On-going recovery deduction amounts taking into account 50% of the earnings disregards.
| Status | Standard rate | 50% earnings disregard | Actual deduction amount |
|---|---|---|---|
| Single | £11.25 | plus £2.50 | £13.75 |
| Lone Parent | £11.25 | plus £12.50 | £23.75 |
| Couple | £11.25 | plus £5.00 | £16.25 |
| Disability | £11.25 | plus £10.00 | £21.25 |
| Status | Maximum rate | 50% earnings disregard | Actual deduction amount |
|---|---|---|---|
| Single | £18.75 | plus £2.50 | £21.25 |
| Lone Parent | £18.75 | plus £12.50 | £31.25 |
| Couple | £18.75 | plus £5.00 | £23.75 |
| Disability | £18.75 | plus £10.00 | £28.75 |
If your tenant has been overpaid housing benefit and a deduction from on-going benefit is being made from your direct payments, you will previously have been sent details confirming the method of recovery and the amount.
Rules prescribe a maximum deduction that can be made from on-going benefit.
This relates to Housing Benefit only there is no effect to Council Tax Support.
Any new overpayment identified or any overpayment already identified, but not calculated, should be calculated in accordance with the provisions of these regulations.
The two rates of recovery are:
Please note: Where there is a disregard given in respect of income or earnings, up to half the disregarded amount may be added to the recovery rate, regardless of which rate is to be used.
A recoverable overpayment has occurred in a non-fraud case. A single customer's earnings are subject to a £5.00 disregard.
The amount that may be deducted is £11.25 + £2.50 = £13.75 per week (50% of the £5.00 earnings disregard).
A recoverable overpayment has occurred in a fraud case. A customer who has been awarded the disability premium has their earnings subject to a £20.00 disregard.
The amount that may be deducted is £18.75 + £10.00 = £28.75 per week (50% of the £20.00 earnings disregard).
A recoverable overpayment has occurred in a non-fraud case. A lone parent's earnings are subject to a £25.00 disregard.
The amount that may be deducted is £11.25 + £12.50 = £23.75 per week (50% of the £25.00 earnings disregard).
The Local Authority must leave at least 50p payable per week in all cases.
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