Tax credit overpayment affecting my housing benefit - PLEASE help!

[colditz]

The tax credit system over paid me by a few hundred pounds earlier this year. So now I am losing £10 a week to repay this, until february 2011.

This is not, in itself, a huge problem. Yes, I'm on income support and losing £40 a month when I recieve no maintenance is hard, but still. It was paide to me earlier in the year.

HOWEVER.

I have just landed a good job, netting about £120 a week. This is for 24 hours work (sleep in rate) which takes me into the tax credit system. It still leaves me eligable for housing benefit.

Now we have a problem. Because I will no longer receive income support, my housing benefit will be calculated on my tax credit entitlement. My entitlement SHOULD be £96 per week but because of the overpayment I receive £87 per week. Based on £87 per week, my housing benefit is reduced by £35 per week.

So in essence, because I have lost £10 per week income, I am set to lose a further £35 per week income.

How can I get the council to take into account my ACTUAL entitlement and not my adjusted entitlement?

The TC system will not allow me to simple pay back the few hundred immediately, it seems

I don't understand how you get less HB when you are getting less tax credit, shouldn't it go up a little to reflect the lower amount of moeny coming into the house?

I dont think they can refuse to let you pay it back immediately (though they may try)

I would contact them saying you are going to be working and want to pay off the amount owed immediatley and your account reassessed

Alternatively could you argue it out with the council, your tax credit statement should be clear that you receive XXXX amount minus YYYY amount for previous overpayment

Explain its the same as when deductions are made from jsa/income support to repay crisis loans or whatever

You def should not be left out of pocket by this

Congrats on job btw