CBM130150 - Overpayments: offsetting against arrears due

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Reasons not to follow this guidance

Where payment has been suspended whilst determining entitlement and it is later determined that entitlement exists and arrears are due, we cannot use those arrears to either recover an overpayment or offset them against part of the overpayment. An offset can only be considered when you are raising an overpayment and arrears are due at the same time. If the overpayment decision has already been made you cannot take offset action. In these cases, follow the guidance at chb80115.

Step 1

Where arrears are due and we have just discovered the overpayment, you can consider an offset. If the arrears are not following a suspension, go to Step 2.

Where arrears are due following a suspension of Child Benefit payments, contact the customer to gain their consent to deduct the amount overpaid from the arrears due.

If the customer agrees, go to Step 2.

If the customer does not agree, release the arrears and take normal overpayment action to recover the overpayment following the guidance in CBM130200.

Step 2 {#Step2}

Offset the arrears against overpayment.

If there is still a balance owed by the customer, go to Step 3.

If there is still a balance owed to the customer

Use CBUS to:

  • update the account as necessary
  • pay the arrears due
  • CBUS screen C - enter adjustment code 25 and the amount and period of recovery
  • CBUS screen D - insert a general note ‘£…. offset for period –/–/– to –/–/–
  • PA the case.

Step 3 {#Step3}

Day 1

Use CBUS to:

  • update the account as necessary
  • pay the customer from a current date
  • CBUS screen C - enter adjustment code 25 and the amount and period of recovery
  • CBUS screen D - insert a general note ‘£…. offset for period –/–/– to –/–/–
  • do not PA the case.

Day 2

Take normal action to recover the remaining overpayment following the guidance in CBM130200.