Recovery rates
Ongoing recovery deduction amounts for 2024/25 taking into account 50% of the earnings disregards.
Standard Rate - Non fraud debt
| Status | Standard rate | 50% earnings disregard | Actual deduction amount |
|---|---|---|---|
| Single | £13.65 | plus £2.50 | £16.15 |
| Lone Parent | £13.65 | plus £12.50 | £26.15 |
| Couple | £13.65 | plus £5.00 | £18.65 |
| Disability | £13.65 | plus £10.00 | £23.65 |
Maximum Rate - Fraud classified debt
| Status | Maximum rate | 50% earnings disregard | Actual deduction amount |
|---|---|---|---|
| Single | £22.75 | plus £2.50 | £25.25 |
| Lone Parent | £22.75 | plus £12.50 | £35.25 |
| Couple | £22.75 | plus £5.00 | £27.75 |
| Disability | £22.75 | plus £10.00 | £32.75 |
Landlord recovery rates
Maximum Rate - Fraud classified debt
If your tenant has been overpaid housing benefit and a deduction from ongoing benefit is being made from your direct payments, you will previously have been sent details confirming the method of recovery and the amount.
Deduction from ongoing benefit
Rules prescribe a maximum deduction that can be made from ongoing 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.
Rates of deduction
The two rates of recovery are:
- Standard maximum rate of recovery from continuing benefit £13.65 per week
- Maximum rate of recovery where the customer has been found guilty of an offence, admitted an offence after caution, or agreed to pay an administration penalty £22.75 per week
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.
Earnings disregards
- Where the disability premium has been awarded - £20
- Where the carer premium has been awarded - £20
- Specified employment - £20
- Lone parent - £25
- Where the customer has a partner - £10
- Single customer - £5
Example A
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 £13.65 + £2.50 = £16.15 per week (50% of the £5.00 earnings disregard).
Example B
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 £22.75 + £10 = £32.75 per week (50% of the £20.00 earnings disregard).
Example C
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 £13.65 + £12.50 = £26.15 per week (50% of the £25.00 earnings disregard).
Minimum level of housing benefit payable
The Local Authority must leave at least 50p payable per week in all cases.
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