Question to the Department for Work and Pensions:

To ask Her Majesty’s Government why housing benefit overpayments increased to £1.4 billion in 2013–14 and how they are addressing the issue.

Housing Benefit is a complex benefit administered by 380 Local Authorities. It has a high proportion of in-work claimants and this caseload is more likely to undergo changes in circumstances than out-of-work claimants. If claimants fail to report changes in circumstances correctly and in a timely manner then overpayments will occur.

The rate of fraud in Housing Benefit has been stable for many years at 1.4% since 2008-09. Official error has also remained relatively stable over the last six years, currently standing at 0.6% which is the same level as in 2008-09. Claimant error has increased from 2.7% in 2008-09 to 3.8% in 2013-14.

The rise in HB claimant error is primarily earnings related and a consequence of failure to report these changes. DWP is taking action to deal with this issue through better data sharing with Local Authorities, such as the introduction of real time information (RTI) on earnings, so that local authorities are alerted to changes quickly and do not have to rely on the claimant informing them of changes.

Longer term, Housing Benefit for working age claimants will be replaced by the housing cost element of Universal Credit and will be paid as a single monthly payment with the other elements. This will reduce the opportunity for Fraud and Error and prevent overpayments from occurring.