Housing Benefit Debt Recovery statistics: April 2022 to March 2023

Question 1

1.  Main stories

Accepted Answer

During FYE 2023:

LAs identified 拢431 million overpaid HB 鈥� 拢20 million more than during FYE 2022
LAs recovered 拢407 million overpaid HB 鈥� 拢16 million less than during FYE 2022, but as a percentage of available debt this is unchanged (19%)
LAs wrote off 拢72 million overpaid HB 鈥� 拢8.8 million more than during FYE 2022
at the start of Q4 of FYE 2023, there was 拢1.7 billion outstanding overpaid HB 鈥� 拢76 million less than at the start of Q4 of FYE 2022

Question 2

2.  What you need to know

Accepted Answer

This summary contains statistics on the amount of overpaid聽HB identified, recovered and written-off by LAs. The statistics are based on the Housing Benefit Debt Recovery (HBDR) returns, collected from LAs each quarter.

The statistics are published twice a year, in March and September. The March publication contains data for the first two quarters of the financial year (April to September). The September publication contains data for the whole of the financial year.

Data tables containing data that underpin the charts and figures featured in this statistical summary are available. As well as the regional and GB totals shown in this statistical summary, the data tables show figures for individual LAs.

LAs are expected to send data returns for all fields on a quarterly basis but sometimes for various reasons this doesn鈥檛 happen, or they can鈥檛 provide data for some fields. The amount of missing information at the start of the series was more prevalent but since Quarter 3 of FYE 2017, the amount of missing information is minimal. In FYE 2023, 98.9% of expected returns were received from LAs.

Because of the greater amount of missing data in the early series, estimates were made to impute Great Britain (GB) totals. As a result, charts in this summary and the ODS tables include 鈥榠mputed鈥� GB totals based on estimates for missing data up to Quarter 2 of FYE 2017. As the data return rate is high from this date no estimates have been made for missing data from Q3 of FYE 2017.

Since the end of 2018, the majority of new working age claimants are required to claim the housing element of Universal Credit (UC), rather than HB. The number of working-age people making new claims to HB has, therefore, steadily decreased from the rollout of UC. Existing HB claimants were not automatically moved to UC, however, when claimants declare a change of circumstance to their HB claim, they have been transferred to UC 鈥� if the claim is eligible. This has had an impact, both on the amount of overpaid HB identified by LAs, and the amount of overpaid HB that they recover.

Question 3

3.  Total outstanding HB overpayments

Accepted Answer

Total outstanding HB overpayments in聽GB听蹿谤辞尘 Q1 FYE 2010 to Q4 FYE 2023 (拢 billions)

Note: GB figures up to Q2 of FYE 2017 are 鈥渋mputed鈥� totals, based on estimates of missing LA data. From Q3 of FYE 2017, figures shown are those actually returned by LAs. Source: HBDR data tables.

At the start of Q4 of FYE 2023, total outstanding HB overpayments stood at 拢1.7 billion. This was 拢76 million (4%) less than at the start of Q4 of FYE 2022.

Up to the end of FYE 2018, the amount of overpaid HB that LAs recovered or wrote-off each quarter was, on average, around 75% to 80% of the amount of overpaid HB that they identified. As a result, the total amount of outstanding overpaid HB steadily increased.

Since Q1 FYE 2020, the total amount of overpaid HB outstanding has been falling because LAs are recovering or writing-off more HB overpayments than they newly identify. In Q4 of FYE 2023, LAs recovered 拢105 million overpaid HB and wrote-off 拢24 million overpaid HB, compared with 拢114 million overpaid HB identified.

Amount of overpaid HB identified/recovered and written-off by LAs from Q1 FYE 2010 to Q4 FYE 2023 (拢 millions)

Note: GB figures up to Q2 of FYE 2017 are 鈥渋mputed鈥� totals, based on estimates of missing LA data. From Q3 of FYE 2017, figures shown are those actually returned by LAs. Source: HBDR data tables.

During the COVID-19 lockdowns, many LAs redeployed staff away from debt recovery to frontline activities and restricted face-to-face meetings between staff and claimants. Subsequently, FYE 2021 saw the lowest amount of overpaid HB identified by LAs since the statistics began. In total, 拢380 million of overpaid HB was identified in FYE 2021 compared with 拢599 million in FYE 2020.

The amount of overpaid HB that LAs identified increased by 拢31 million, or 8%, between FYE 2021 and FYE 2022, to 拢411 million. This figure has continued to increase to 拢431 million in the FYE 2023, a 5% increase from FYE 2022. Following a decline in identified HB overpayments impacted by the COVID-19 pandemic, the amount of overpaid HB that LAs identified began to rise again in Q4 FYE 2021. This was followed by a decline in Q3 of FYE 2022, whereby HB overpayments identified by LAs fell to 拢100 million in Q4 of FYE 2022, followed by a continued rise in the amount of overpaid HB identified by LAs, to 114 million in FYE 2023.

The amount of overpaid HB that LAs recovered followed a similar trend, falling by 28% between FYE 2020 and FYE 2021. In FYE 2022, the amount of overpaid HB that LAs recovered increased slightly, by 拢9 million, or 2%. However, after increasing, from 拢99 million in Q2 of FYE 2021 to 拢109 million in Q2 of FYE 2022, in Q3 of FYE 2022 it then started to fall again. It continued to fall to Q1 of FYE 2023, after which it has continued to increase. At Q4 2023 the amount of overpaid HB that LAs recovered was 拢105 million.

Total outstanding HB overpayments by region, at the start of聽Q4听辞蹿 FYE 2023

Region	Total outstanding HB overpayments (拢 millions)	Percentage of GB total
Great Britain	1,702	100%
North East	55	3%
North West	164	10%
Yorkshire and The Humber	89	5%
East Midlands	77	5%
West Midlands	153	9%
East	113	7%
London	582	34%
South East	199	12%
South West	92	5%
Wales	45	3%
Scotland	135	8%

Source: HBDR data tables.

At the start of Q4 of FYE 2023, London LAs reported 拢582 million outstanding overpaid HB, just over a third (34%) of the GB total. At the start of Q4 of FYE 2023, 89% of the outstanding overpaid HB in GB was in LAs in England, 3% in LAs in Wales and 8% in LAs in Scotland.

Question 4

4.  HB overpayments newly identified by LAs

Accepted Answer

There was a steady increase in the amount of overpaid HB that LAs identified, from 拢151 million in Q1 of FYE 2010 to 拢213 million in Q2 of FYE 2015.

In Q3 of FYE 2015, there was a sharp increase in the amount of overpaid HB identified, followed by several years in which the amount of overpaid HB identified by LAs fluctuated.

There was a sustained fall in the amount of overpaid HB identified by LAs, from 拢190 million in Q3 of FYE 2019 to 拢92 million in Q3 of FYE 2021. The amount of overpaid HB identified by LAs subsequently increased to 拢107 million in Q2 of FYE 2022, however it then began to fall and was 拢100 million in Q4 of FYE 2022. The figure has since increased and in quarter 4 of FYE 2023 it is 拢114 million.

Factors influencing the amount of HB overpayment identified by LAs include:

the Fraud and Error Reduction Incentive Scheme (FERIS) was introduced in Q3 of FYE 2015 to help LAs to identify and prevent HB overpayment. Around the same time, real-time information (RTI) on claimant鈥檚 incomes became available to LAs. The income that claimants reported on their HB claims was checked against RTI on claimants鈥� actual income from HMRC. These checks led to undeclared income, and consequently overpaid HB, being identified by LAs
UC rollout 鈥� at the start of Q3 FYE 2015, there were just over 4.9 million HB claimants in GB. By the start of Q4 FYE 2023, this number had fallen by 50% to just below 2.5 million. Since Q3 of FYE 2019, most new working-age claimants have claimed the housing element of UC rather than HB
during the COVID-19 lockdowns in Q4 FYE 2020 and FYE 2021, many LAs redeployed staff away from debt recovery to frontline activities and restricted face-to-face meetings between staff and claimants

HB overpayments newly identified in聽GB,听蹿谤辞尘 Q1听辞蹿 FYE 2010 to Q4听辞蹿 FYE 2023 (拢 millions)

Note: GB figures up to Q2 of FYE 2017 are 鈥渋mputed鈥� totals, based on estimates of missing LA data. From Q3 of FYE 2017, figures shown are those actually returned by LAs. Source: HBDR data tables.

HB overpayments newly identified by LAs, by region, FYE 2023

Region	HB overpayments identified (拢 millions)	Percentage of GB total
Great Britain	431	100%
North East	13	3%
North West	34	8%
Yorkshire and The Humber	24	6%
East Midlands	20	5%
West Midlands	53	12%
East	29	7%
London	143	33%
South East	53	12%
South West	26	6%
Wales	13	3%
Scotland	23	5%

Source: HBDR data tables.

The amount of overpaid HB identified by LAs in FYE 2023 ranged from 拢13 million (3% of the GB total) in Wales and the North East to 拢143 million (33% of the GB total) in London. Of the overpaid HB identified in GB, 91% was identified by LAs in England, 3% by LAs in Wales and 5% by LAs in Scotland.

Average HB聽overpayment newly identified per claimant per month by region during聽FYE 2023

Region	Average HB overpayment newly identified per claimant per month
Great Britain	拢14.30
England	拢15.46
North East	拢8.23
North West	拢9.42
Yorkshire and the Humber	拢9.58
East Midlands	拢10.65
West Midlands	拢19.14
East	拢12.47
London	拢26.43
South East	拢16.16
South West	拢11.82
Wales	拢8.41
Scotland	拢7.63

Source: HBDR data tables.

During FYE 2023 LAs in GB identified, on average, overpaid HB equivalent to 拢14.30 per claimant per month. LAs in London identified the highest amount of overpaid HB, equivalent to 拢26.43 per claimant per month. LAs in England identified overpaid HB equivalent to 拢15.46 per claimant per month, compared with 拢8.41 in Wales and 拢7.63 in Scotland.

Question 5

5.  HB overpayments recovered

Accepted Answer

The amount of overpaid HB recovered by LAs steadily increased, reaching a high of 拢175 million in Q4 of FYE 2018. Subsequently, the amount of overpaid HB recovered by LAs fell steadily, to 拢132 million in Q4 of FYE 2020.

The start of the COVID-19 lockdown saw a sharp fall in the amount of overpaid HB recovered by LAs. In Q1 of FYE 2021, it fell by nearly 拢30 million, to 拢103 million. In Q2 of FYE 2021 it fell again to 拢99 million. There was a small increase in the amount of overpaid HB recovered by LAs, to 拢109 million in Q2 of FYE 2022, however by Q1 of FYE 2023 it had fallen further to 拢98 million. It has since risen slightly and in Q4 of FYE 2023 the figure was 拢105 million.

HB overpayments recovered in聽GB听蹿谤辞尘聽Q1听辞蹿 FYE 2010 to聽Q4听辞蹿 FYE 2023 (拢 millions)

Note: GB figures up to Q2 of FYE 2017 are 鈥渋mputed鈥� totals, based on estimates of missing LA data. From Q3 of FYE 2017, figures shown are those actually returned by LAs. Source: HBDR data tables.

HB overpayments recovered by region, FYE 2023

Region	HB overpayments recovered (拢 millions)	% of GB total
Great Britain	407	100%
North East	14	3%
North West	37	9%
Yorkshire and The Humber	23	6%
East Midlands	21	5%
West Midlands	53	13%
East	30	7%
London	116	28%
South East	52	13%
South West	25	6%
Wales	13	3%
Scotland	22	5%

Source: HBDR data tables.

In FYE 2023, LAs in London reported 28% of the total amount of聽HB聽overpayments recovered in聽GB. Of the total HB overpayments recovered in GB, 92% was recovered by LAs in England, 3% by LAs in Wales and 5% by LAs in Scotland.

Question 6

6.  HB overpayments written-off

Accepted Answer

HB overpayments written-off in聽GB, from聽Q4听辞蹿 FYE 2010 to聽Q4听辞蹿 FYE 2023 (拢 millions)

Note: GB figures up to Q2 of FYE 2017 are 鈥渋mputed鈥� totals, based on estimates of missing LA data. From Q3 of FYE 2017, figures shown are those actually returned by LAs. Source: HBDR data tables.

Each year, the amount of overpaid HB written-off by LAs has been highest in Q4 (January to March) of the financial year. Q1 of the following year has seen a sharp fall.

In Q1 of FYE 2023, LAs wrote-off 拢14 million overpaid HB. This increased to 拢24 million in Q4 of FYE 2023. The overall amount of overpaid HB written-off in FYE 2023 was 拢8.8 million, or 14%, more than in FYE 2022.

Taking the financial year as a whole, FYE 2018 saw the highest amount of overpaid HB written-off, at 拢100 million, or 拢25 million per quarter. Since FYE 2018, the amount of overpaid HB written-off fell to FYE 2022 when it was 拢63 million, or just less than 拢16 million per quarter. It has risen in FYE 2023 to 拢72 million, or just less than 拢18 million per quarter.

HB overpayments written-off by region, FYE 2023

Region	HB overpayments written-off (拢 millions)	Percentage of GB total
Great Britain	71.5	100%
North East	3.7	5%
North West	7.3	10%
Yorkshire and The Humber	4.4	6%
East Midlands	3.3	5%
West Midlands	4.3	6%
East	5.3	7%
London	25.8	36%
South East	7.5	11%
South West	3.9	5%
Wales	2.0	3%
Scotland	3.8	5%

Source: HBDR data tables.

The amount of overpaid HB written-off by LAs in FYE 2023 ranged from 拢2 million (3% of the GB total) in Wales to 拢25.8 million (36% of the GB total) in London. 93% of write-off was made by LAs in England, 2% by LAs in Wales and 5% by LAs in Scotland.

Question 7

7.  About these statistics

Accepted Answer

This summary contains statistics on the amount of overpaid聽HB identified, recovered and written-off by LAs. The statistics are based on the Housing Benefit Debt Recovery (HBDR) returns, collected from LAs each quarter.

Publication schedule

The statistics are published twice a year, in March and September. The March publication contains data for the first two quarters of the financial year (April to September). The September publication updates the statistics with data for the whole of the financial year. Where LAs notified us of changes to their first two quarters鈥� data or provided a late Quarter 1 or Quarter 2 return after the deadline for the March 2023 publication, these have been incorporated into this publication.

Supplementary statistics

Data tables containing data that underpin the charts and figures featured in this statistical summary are available. As well as the regional and GB totals shown in this statistical summary, the data tables show figures for individual LAs.

LAs are asked to provide a breakdown between overpaid 鈥淩ent Rebate鈥� (HB paid to LA tenants) and 鈥淩ent Allowance鈥� (HB paid to housing association and private sector tenants). This breakdown is shown in the supplementary tables, in those LAs for which it is available.

Data completeness

Up to Q2 of FYE 2017, when an LA did not send a return GB totals were imputed using methodology detailed in the background information and methodology note. 聽From Q3 of FYE 2017 the return rate improved to a point that imputation of GB totals was no longer necessary, and all figures in the series from this date are from actual returns.

Comparability

As well as missing data, the background information and methodology document describes a number of other factors that need to be considered when comparing data. These include:

it is not possible to make direct comparisons between the amount of HB overpayments that LAs identify during a particular period and the amount of overpayment that they recover in that period. Firstly, because overpayments are not necessarily identified in the same period that they occurred. Secondly, because overpayments are not necessarily recovered in the same period that they are identified
the number of people claiming HB has been decreasing and will continue to fall as UC replaces HB for working age claimants
FERIS provided LAs with tools to help them identify and prevent overpaid HB. RTI on claimants鈥� income became available to LAs at around the same time (Q3 of FYE 2015). This allowed LAs to identify income that claimants had failed to report on their HB claims, which in turn led to an increase in the amount of overpaid HB that LAs were able to identify
at the start of the COVID-19 pandemic, many LAs redeployed staff away from debt recovery to frontline activities and restricted face-to-face meetings between staff and claimants
LAs sometimes identify an amount by which a HB claimant has been overpaid, but then revise this amount at a later date. In some cases, for instance, 鈥渦nderlying entitlement鈥� might be retrospectively applied to an overpayment, reducing the amount that the claimant was originally thought to owe. Conversely, an LA might retrospectively reverse their decision to write-off an overpayment. These revisions lead to a discrepancy between figures for one quarter and the next

The total amount of HB overpayment at the start of a quarter should, in theory, equal the total amount of overpayment at the start of the previous quarter, plus the amount of overpayment newly identified during the previous quarter, minus the amount of overpayment recovered and written-off during the previous quarter. However, this is not the case in all LAs. Nationally, the total amount of outstanding HB overpayment that LAs reported at the start of Q4 of FYE 2023 was 0.46% less than the figures reported in Q3 suggested it would be. This difference was a result of revisions made in Q4 to overpayments that LAs first identified in previous quarters. The background information and methodology document describes this issue in more detail.

Local authority mergers

There have recently been a number of LA mergers. Four LAs in Buckinghamshire, for instance, merged to form a single LA. Although the LAs officially merged in 2020, their IT systems merged later. As a result, in Q4 of FYE 2022, there was an incomplete return for Buckinghamshire LA.

The way that figures are presented in the supplementary tables has changed since the HBDR statistics were published in March 2022 and in earlier publications. The statistics shown in this publication are based on the current LA configuration, with figures for the 鈥渙ld鈥� LAs that merged to form the new LAs no longer shown. This is consistent with HB caseload figures published on Stat-Xplore.

Average HB overpayment identified per claimant per month

This summary includes a table showing the equivalent amount of overpaid HB, per claimant per month. This is calculated by dividing the total amount of overpaid HB identified by LAs in FYE 2023, by the sum of the HB caseload in each month of FYE 2023. Data on the number of HB claimants was taken from Stat-Xplore.

This is not an exact measure because, although LAs might report during a particular quarter that they had identified an amount of overpaid HB, this overpayment might have occurred in a previous quarter or financial year and the claimant whose HB was overpaid may no longer have been receiving HB when the overpayment was identified.

Rounding policy

Percentage figures presented in this document are rounded to the nearest 1%. In some cases, figures may not add up to 100% due to rounding.

In the supplementary tables, raw data provided by LAs have been added to generate regional and national totals, before being rounded to the nearest 拢1,000. As a result of this rounding, the sum of the LA figures shown in the tables may be slightly different to the regional and national totals.

These statistics show the amount of HB overpayment that is identified and subsequently recovered by LAs.聽 The Department for Work and Pensions (DWP) carry out a sampling exercise to estimate overall levels of fraud and error in HB, including overpayment not identified by LAs.聽 According to the latest estimate, published in May 2023, there was approximately 拢820 million overpaid HB in FYE 2023.聽 An estimated 拢520 million was overpaid due to fraud, 拢240 million due to claimant error and 拢60 million due to official error.

Question 8

8.  HBDR聽data: collection processes and accuracy

Accepted Answer

Data collection

The following table details the list of questions asked to聽LAs聽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

LAs are asked to provide a breakdown between overpaid 鈥淩ent Rebate鈥� (HB paid to LA tenants) and 鈥淩ent Allowance鈥� (HB paid to housing association and private sector tenants). Where this breakdown is available it is shown in the 鈥渟upplementary tables鈥漒u003c/p>

Average data return rates

Collection Period	Percentage of HB caseload covered by the HBDR returns
FYE 2009	74.0%
FYE 2010	96.5%
FYE 2011	96.3%
FYE 2012	97.9%
FYE 2013	98.7 %
FYE 2014	99.1%
FYE 2015	99.3%
FYE 2016	99.9%
FYE 2017	99.3%
FYE 2018	100.0%
FYE 2019	100.0%
FYE 2020	99.9%
FYE 2021	99.3%
FYE 2022	99.2%
FYE 2023	99.6%

Question 9

9.  Further information

Accepted Answer

Our background information and methodology document provides further information on the HBDR聽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聽Code of Practice for Statistics.

National Statistics status means that our statistics meet the highest standards of:

trustworthiness
quality
public value

Once statistics have been designated as National Statistics it is our responsibility to maintain compliance with these standards. In order to assess the quality of the HBDR statistics, in July 2021, LAs were sent a survey, asking them a number of questions about how they complete their returns. Information collected on this survey has been incorporated into the background information and methodology document.

Other National and Official Statistics

See details of other National and Official Statistics produced by the DWP.

See a schedule of statistical releases over the next 12 months.

Feedback

厂辫别肠颈蹿颈肠听HBDR聽statistics feedback can be submitted via our聽HBDR聽user questionnaire.

Completed questionnaires can be returned by email to聽cbm.stats@dwp.gov.uk

Users can also join the 鈥淺u003ca rel="external" href="http://www.statsusernet.org.uk/" class="govuk-link">Welfare and Benefit Statistics鈥� community. DWP announces items of interest to users via this forum, as well as replying to users鈥� questions.

Lead Statistician: Kate Walker

Enquiries about these statistics should be directed by email to: cbm.stats@dwp.gov.uk

For media enquiries please contact the DWP聽press office.

ISBN: 978-1-78659-551-5

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