Housing Benefit debt recoveries statistics: April 2021 to September 2021
Updated 31 March 2022
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This publication is available at https://www.gov.uk/government/statistics/housing-benefit-debt-recoveries-statistics-april-2021-to-september-2021/housing-benefit-debt-recoveries-statistics-april-2021-to-september-2021
The latest release of these statistics can be found in the collection of Housing Benefit: debt recoveries statistics.
Housing Benefit (HB) is an income related benefit that is intended to help meet housing costs for rented accommodation.
This publication updates statistics on the amount of HB that local authorities (LAs) identified had been overpaid to claimants, the amount recovered and the amount written off, with data for the first two quarters of the financial year ending (FYE) 2022 (April 2021 to September 2021).
1. Main stories
During the first two quarters of FYE 2022:
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LAs identified £208 million overpaid HB – £17 million more than during the first two quarters of FYE 2021
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LAs recovered £214 million overpaid HB – £12 million more than during the first two quarters of FYE 2021
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LAs wrote off £25 million overpaid HB – £0.5 million less than during the first two quarters of FYE 2021
Since the start of FYE 2019, LAs have either recovered or written-off more overpayments than they have identified. As a result, the total amount of outstanding debt has fallen. At the start of Q2 of FYE 2022 total outstanding debt stood at £1.82 billion. This was £154 million (8%) less than at the start of Q2 of FYE 2021.
Overall, the amount of overpaid HB that LAs identified has been falling from £258 million in Q3 of FYE 2018 to £143 million in Q3 of FYE 2020 in line with the number of claimants receiving HB. At the start of the COVID-19 pandemic, the amount of HB overpayment identified continued to fall sharply. Between Q3 of FYE 2020 and Q3 of FYE 2021, it fell to £92 million as many LAs redeployed staff away from debt recovery to frontline activities and restricted face-to-face meetings between staff and claimants.
Since the end of FYE 2021 the amount of HB overpayment that LAs identified has increased to £107 million in Q2 of FYE 2022, an increase of 14% compared to the same quarter FYE 2021. Furthermore, the amount of overpayment LAs have recovered has increased to £108 million in Q2 of FYE 2022, an increase of 9% compared to the same quarter FYE 2021.
2. What you need to know
This summary contains statistics relating to amounts of incorrectly overpaid HB.
Housing Benefit debt recoveries (HBDR)
Following the introduction of the Single Fraud Investigation Service, which was live in all LAs by Q1 of FYE 2017, this publication no longer includes data on fraud investigations. The publication was renamed ‘HBDR statistics’ to reflect this change.
HBDR data is aggregate level data received on a quarterly basis from each LA and published bi-annually each March and September. The March publication covers the first two quarters of the year (April to September). The publication in September covers finalised data for all four quarters of the year.
The amount of outstanding debt at the beginning of a quarter is a sum of the amount of debt outstanding at the beginning of the previous quarter and the debt recovery activities during the previous quarter. For example, the amount of debt outstanding at the beginning of Q2 is the sum of the amount of debt outstanding at the beginning of Q1 and the amount of debt identified during Q1, minus the amount of debt recovered and written off during Q1. In principle, the amount of debt outstanding at the beginning of any given reporting quarter could be estimated from the released figures of the previous quarter’s publication, as any new debt identified, written off or recovered related to a historic period would be reported in the current period and would be accounted for in the overall outstanding debt at the beginning of the following quarter. However, the reported debt at the beginning of the quarter is not always in line with these estimations. DWP is working with LAs to understand, address and minimise these discrepancies.
Some LAs do not send completed data forms every quarter or cannot supply data for all fields. This produces missing data in the returns that affects the reported Great Britain totals. In publications prior to September 2017 DWP statisticians filled the gap created by missing data by imputing or estimating what the missing value might have been. For more information see methodology document. During 2017 the number of non-returner LAs reduced to the point that imputation was unnecessary, therefore since the September 2017 publication all figures in the statistical summary documents have been based on actual data returned by LAs.
In recent quarters, there has been an increase in the number of missing returns. In total, 97.9% of expected returns were received during the period covered by this publication. We are working with LAs to identify reasons for the recent increase in missing returns and reduce the number of missing returns in future quarters. Any late returns or revisions received from LAs for Q1 and Q2 will be incorporated into finalised FYE 2022 data in September 2022. We are reviewing our policy on how we deal with missing data, ahead of publication of finalised FYE 2022 data, and are keen to hear the views of users on this.
The number of people claiming HB has been gradually decreasing and will continue to fall as Universal Credit replaces HB for working age claimants. Accordingly, this is evident in decreases seen across HBDR measures that LAs record and report to DWP between Q4 of FYE 2019 through to the start of COVID-19 pandemic lockdown in March 2020. Since then, trends in HBDR measures have been further impacted by the COVID-19 pandemic.
These statistics show the amount of HB overpayment that is identified and subsequently recovered by LAs. Some overpayment, however, will not be identified. DWP carry out a sampling exercise to estimate overall levels of fraud and error in HB. According to the latest estimate, published in May 2021, there was approximately £1,030 million overpaid HB in FYE 2021. An estimated £650 million was overpaid due to fraud, £300 million due to claimant error and £90 million due to official error.
It is not possible to make direct comparisons of the annual amount of HB overpaid in a year with the overpayments identified in the same year, as reported in these statistics, because overpayments are not necessarily recovered in the same year but can be recovered over longer periods of time
Supplementary statistics
Data tables containing data that underpin the charts and figures featured in this statistical summary are available. These include information by LA on outstanding overpayments at the beginning of each quarter and identified, recovered and written-off overpayments at the end of each quarter.
Uses and users
HBDR data are aggregate level data received on a quarterly basis from each LA. These data are used to produce established statistics on the amount of HB overpaid to claimants. The statistics also provide a means of comparing and contrasting information between LAs.
These data will also be used to feed into a range of briefings for Ministers and other senior officials and will be used to answer Parliamentary Questions and Freedom of Information requests. The statistics will also be used for other policy functions including monitoring and informing changes to related policies.
LA and regional data
HBDR data are generated from the HB claims that LAs administer on behalf of DWP and are reported to DWP as total sums of HB overpayments by each LA. While for all LAs the majority of HB claims administered relate to households within their respective administrative geographical boundaries, for some LAs a small number of HB claims could relate to households outside of their boundaries. Therefore, care needs to be taken when interpreting individual LAs’ HBDR data, as it is possible that not all the overpayment sums reported by a LA relate to households within its geographical boundaries. The HBDR data relates to the LAs and regions where the HB claims that have been overpaid were administered, regardless of where HB claimants reside.
The HB caseload data that some of the calculations in these statistics are based on also relates to the number of HB claims administered by LAs and regions regardless of where the claimants reside.
Rounding policy
Percentage figures provided in this document are based on data rounded to the nearest thousand (see the data tables accompanying each release of these statistics).
Recalculating the same percentage figures from data in this document might yield different results due to differences in rounding order.
Coronavirus (COVID-19)
At the start of the COVID-19 pandemic, LAs had to make operational decisions to redeploy staff to frontline activities and move to working from home, resulting in the majority of debt recovery staff not being in post for several months. LAs continue to have resourcing issues and although debt recovery resources are increasing, they remain below pre-pandemic levels.
Since the second half of FYE 2022 LAs have been made aware that there is an increased focus by DWP to encourage LAs to return to “business as usual” regarding HB debt activities.
3. HB outstanding overpayments
Since the end of FYE 2018, there has been a steady fall in the amount of new overpayment identified by LAs. The total amount of debt recovered has also fallen, but at a slower rate.
Q1 of FYE 2019 saw the amount of HB overpayment either recovered or written-off by LAs exceed the amount of overpayment that they identified for the first time.
As a result, the total amount of outstanding HB overpayments has fallen, from a peak of £2.12 billion million at the start of Q4 of FYE 2018 to £1.82 billion at the start of Q2 of FYE 2022.
The total value of HB outstanding overpayments at the beginning of July 2021 (Q2 of FYE 2022) was £1.82 billion; a decrease of £154 million (8%) on July 2020.
Outstanding HB overpayments (£ billions) in Great Britain from Q1 of FYE 2009 to Q2 of FYE 2022
Source: HBDR data tables.
At the start of Q2 of FYE 2022 the value of HB outstanding overpayments reported by LAs in London accounted for 33% of the total Great Britain figure, while the value of HB outstanding overpayments reported by LAs in Wales made up 3% of the Great Britain total.
Outstanding HB overpayments by region, at the start of Q2 of FYE 2022
| Region | HB Overpayments Outstanding at start of Quarter 2, FYE 2022 (%) |
|---|---|
| North East | 3% |
| North West | 10% |
| Yorkshire and The Humber | 5% |
| East Midlands | 5% |
| West Midlands | 9% |
| East | 7% |
| London | 33% |
| South East | 12% |
| South West | 5% |
| Wales | 3% |
| Scotland | 8% |
Source: HBDR data tables.
At July 2021, 90% (£1.63 billion) of the total outstanding HB overpayment was reported by LAs in England.
Outstanding HB overpayments (£ thousands) by country, at the start of Q2 of FYE 2022
| Country | HB Overpayments Outstanding at start of Quarter 2, FYE 2022 (thousands £) |
|---|---|
| England | 1,631,363 |
| Wales | 49,878 |
| Scotland | 137,607 |
Source: HBDR data tables.
At the start of Q2 of FYE 2022, £821 million of outstanding HB overpayments were reported by LAs in London and the South East. This represents 45% of the total outstanding HB overpayments in Great Britain.
Outstanding HB overpayments (£ thousands) by region, at the start of Q2 of FYE 2022
| Region | HB Overpayments Outstanding at start of Quarter 2, FYE 2022 (thousands £) |
|---|---|
| North East | 62,430 |
| North West | 184,625 |
| Yorkshire and The Humber | 97,079 |
| East Midlands | 85,886 |
| West Midlands | 163,805 |
| East | 121,427 |
| London | 608,864 |
| South East | 212,036 |
| South West | 95,211 |
| Wales | 49,878 |
| Scotland | 137,607 |
Source: HBDR data tables.
4. HB identified overpayments
There was a steady increase in the amount of overpaid HB that LAs identified, from £86 million in Q1 FYE 2009 to £211 million in Q2 FYE 2015.
The Fraud and Error Reduction Incentive Scheme (FERIS) was introduced in the third quarter of FYE 2015 to help LA’s to identify and prevent HB overpayment and, where overpayment had occurred, to identify it earlier so that the amount of HB overpaid was less. In addition, the use of HMRC Real-Time Information (RTI) on claimants’ incomes enabled LAs to compare income earned against income declared.
Following the introduction of the scheme and the ability of LAs to identify more overpayments, the amount of identified HB overpayments increased to a peak of £321 million in Q2 of FYE 2016.
Between Q3 of FYE 2018 and Q4 of FYE 2021, there was a sustained fall in the amount of overpaid HB identified by LA.
Since the end of FYE 2021, the amount of HB overpayment identified by LAs has increased again. During Q2 of FYE 2022, LAs identified £107 overpaid HB, an increase of £14 million (14%) compared with the same quarter a year earlier.
Identified HB overpayments (£ millions) in Great Britain from Q1 of FYE 2009 to Q2 of FYE 2022
Source: HBDR data tables.
During Q2 of FYE 2022, the average identified HB overpayment per claimant per month in Great Britain was £13. This compares to £10 in Q2 of FYE 2021, an increase of £3. Care must be taken when interpreting this yearly comparison as the makeup of claimants may have also changed.
During Q2 of FYE 2022, West Midlands reported the largest average amount of identified HB overpayment per claimant per month (£22), based on HB caseload figures during this quarter as published in Stat-Xplore.
Average HB overpayment identified (£) per claimant per month by region during Q2 of FYE 2022
| Region | Average HB Overpayment Identified per Claimant per Month during Quarter 2, FYE 2022 (£) |
|---|---|
| Great Britain | 13 |
| North East | 9 |
| North West | 9 |
| Yorkshire and The Humber | 8 |
| East Midlands | 9 |
| West Midlands | 22 |
| East | 13 |
| London | 21 |
| South East | 13 |
| South West | 10 |
| Wales | 8 |
| Scotland | 7 |
Source: HBDR data tables.
Of the £107 million of HB overpayments identified in Great Britain during Q2 of FYE 2022, £97 million (91%) was identified by LAs in England, £6 million (6%) in Scotland and £4 million (3%) in Wales.
Identified HB overpayments (£ thousands) reported by country during Q2 of FYE 2022
| Country | HB Overpayments Identified during Quarter 2 FYE 2022 (thousands £) |
|---|---|
| England | 97,173 |
| Wales | 3,706 |
| Scotland | 5,977 |
Source: HBDR data tables.
5. HB overpayments recovered
Historically, the total value of overpayments recovered has tended to vary seasonally between quarters. Overall it has followed an upwards trend, reaching a high of £175 million in Q4 of the FYE 2018. Since the end of FYE 2018, however, as the amount of overpaid HB identified by LAs has fallen, so too has the amount of overpayment recovered.
In Q3 of FYE 2021, the amount of HB overpayment recovered by LAs fell below £100 million for the first time since 2010.
This decrease should be seen in context with the effects of the COVID-19 pandemic, which resulted in staff redeployment and changes to operational processes.
Since the end of FYE 2021 the amount of HB overpayment recovered has slightly increased again. The total value of HB overpayments recovered in Q2 of FYE 2022 was £108 million. This was an increase of £9 million (9%) from Q2 of FYE 2021.
Recovered HB overpayments (£ millions) in Great Britain from Q1 of FYE 2009 to Q2 of FYE 2022
Source: HBDR data tables.
In Q2 of FYE 2022, LAs in London and the West Midlands reported 42% of the total amount of HB overpayments recovered in Great Britain.
HB overpayments recovered (£ thousands) by region, during Q2 of FYE 2022
| Region | HB Overpayments Recovered During Quarter 2 FYE 2022 (thousands £) |
|---|---|
| North East | 3,862 |
| North West | 10,693 |
| Yorkshire and The Humber | 5,984 |
| East Midlands | 5,676 |
| West Midlands | 16,507 |
| East | 8,502 |
| London | 28,433 |
| South East | 12,686 |
| South West | 6,217 |
| Wales | 3,766 |
| Scotland | 5,580 |
Source: HBDR data tables.
In Q2 of FYE 2022, out of the £108 million of HB overpayments recovered in Great Britain, £99 million (91%) was recovered by LAs in England, £6 million (5%) in Scotland and £4 million (3%) in Wales.
HB overpayments recovered (£ thousands) by country, during Q2 of FYE 2022
| Country | HB Overpayments Recovered During Quarter 4, FYE 2021 (thousands £) |
|---|---|
| England | 98,560 |
| Wales | 3,766 |
| Scotland | 5,580 |
Source: HBDR data tables.
6. HB overpayments written off
There is an observable seasonal trend in the amount of overpayments written off throughout the year. It is generally highest in Q4 (March) of each financial year, followed by a sharp decrease during Q1 of the following year. In line with this there was a decrease in the total amount of HB overpayments written off from £21 million in March 2021 (Q4 of FYE 2021) to £12 million in June 2021 (Q1 of FYE 2022). This was a decrease of £1 million from the total amount of HB overpayments written-off in Q1 of FYE 2021.
The total value of HB overpayments written off in Q2 of FYE 2022 was £14 million. This was an increase of £0.5 million (5%) from the total amount of HB overpayments written off in Q2 of FYE 2021.
HB overpayments written off (£ millions) in Great Britain, from Q1 of FYE 2009 to Q2 of FYE 2022
Source: HBDR data tables.
In Q2 of FYE 2022, of the £14 million of written off HB overpayments in Great Britain, £12 million (88%) was written off by LAs in England, £1 million (8%) in Scotland and £0.5 million (4%) in Wales.
HB overpayments written off (£ thousands) by country, during Q2 of FYE 2022
| Country | HB Overpayments Written Off During Quarter 4, FYE 2021 (thousands £) |
|---|---|
| England | 11,959 |
| Wales | 542 |
| Scotland | 1,021 |
Source: HBDR data tables.
7. HBDR data: collection processes and accuracy
Data collection
The table below details the list of questions asked to LAs as part of the data collection process.
| Field | Overpayment Questions |
|---|---|
| 1 | Total value of HB overpayments outstanding at the start of the quarter |
| 2 | Total value of HB overpayments identified during the quarter |
| 3 | Total value of HB overpayments recovered during the quarter |
| 4 | Total value of HB overpayments written off during the quarter |
Average data return rates
| Collection Period | Overpayment Questions |
|---|---|
| FYE 2009 | 89.7% |
| FYE 2010 | 99.2% |
| FYE 2011 | 99.5% |
| FYE 2012 | 99.6% |
| FYE 2013 | 99.8% |
| FYE 2014 | 99.7% |
| FYE 2015 | 99.3% |
| FYE 2016 | 99.9% |
| FYE 2017 | 99.5% |
| FYE 2018 | 100.0% |
| FYE 2019 | 100.0% |
| FYE 2020 | 99.6% |
| FYE 2021 | 99.0% |
| Q1 and Q2 FYE 2022 | 97.9% |
Some LAs do not send completed data forms every quarter or cannot supply data for all fields. This produces missing data in the returns that affects the reported Great Britain totals. In previous publications prior to the September 2017 release, estimates were made of Great Britain totals taking into account LAs which could not provide data. Read the methodology document for more information.
Since the September 2017 release because the number of non-returner LAs reduced to the point that imputation was unnecessary the figures in this release and subsequent releases are only based on actual data returned by LAs. Imputed estimates of GB totals for amounts overpaid, recovered and written-off can still be found in the data tables.
In recent quarters, there has been an increase in the number of missing returns. In total, 97.9% of expected returns were received during the period covered by this publication. We are working with LAs to identify reasons for the recent increase in missing returns and reduce the number of missing returns in future quarters.
Additional information
HBDR data is aggregate level data received from each LA, and it is subject to a significant degree of variation both in and between different LAs. From 2014, we have observed a significant amount of variation in the overpayment data. This could be due to a wide range of factors such as:
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differences and issues with LAs software suppliers
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changes in LA return rates
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additional side effects due to the phased implementation of SFIS
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the implementation of the FERIS, RTI and factors unique to each LA (for example, increases or decreases in resources, bulk clearing of historical overpayments)
8. About these statistics
Known issues, changes and revisions
Our methodology and background information note provides further information on the DWP HBDR statistics, including some of the processes involved in developing and releasing these statistics.
Data tables containing data that underpin the charts and figures featured in this statistical summary are also published.
National Statistics status
The UK Statistics Authority has designated these statistics as National Statistics, at June 2012, in accordance with the Statistics and Registration Service Act 2007 and signifying compliance with the Code of Practice for Statistics.
National Statistics status means that our statistics meet the highest standards of:
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trustworthiness
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quality
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public value
Once statistics have been designated as National Statistics it is our responsibility to maintain compliance with these standards.
Since the assessment date the following improvements have been made to this publication:
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statistics have been made more accessible through improvement in presentation of the first release and formatting of supporting data tables
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value has been added by including HB caseload data to calculate regional average HB overpayments amounts per HB claimant, and by introducing interactive visualisations of regional and LA data
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quality assurance processes have been strengthened by optimising automation in implementing analyst checks and by putting in place a thorough peer review process for each publication cycle
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increased user and stakeholder engagement activities by setting up working groups with participants from across policy and operations
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in 2019, HBDR users were consulted on the frequency of publishing for these statistics – read the outcome of this consultation
Other National and Official Statistics
Details of other National and Official Statistics produced by the DWP:
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a schedule of statistical releases over the next 12 months and a list of the most recent releases
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detailed background notes and methodology relating to this publication
Feedback
Specific HBDR statistics feedback can be submitted via our HBDR user questionnaire.
Completed questionnaires can be returned by email to stats-consultation@dwp.gov.uk
Users can also join the “Welfare and Benefit Statistics” community. DWP announces items of interest to users via this forum, as well as replying to users’ questions
Supplementary Statistics
Data tables containing data that underpin the charts and figures featured in this statistical summary include information by LAs on outstanding overpayments at the beginning of each quarter and identified, recovered and written-off overpayments at the end of each quarter.
Lead Statistician: John Canlin
DWP Press Office: 020 3267 5144
ISBN: 978-1-78659-392-4