Unexpected Housing Benefit Demand after migrating to Universal Credit

I recently applied for Universal Credit after receiving the migration notice letter. I followed the guides on this website to complete my application. It's now been two weeks, and my claim is still in process.

I have received letters from ESA, Housing Benefit, and Council Tax stating that my claims have been closed.

However, I received another strange letter from the local authority demanding payment for Housing Benefit from my old address, dating back 8 years.

The letter doesn't explain how the amount was calculated, when the decision was made, or why they’re bringing this up after 8 years. It simply says "remove benefit cap."

I don’t recall any overpayment, and since it's been 8 years, I’m unsure why this is suddenly an issue. I have been claiming ESA and PIP throughout this time.

The letter looks like a bill, and they are expecting payment within 30 days.

The amount owed is around £650. What should I do? Has anyone had a similar experience?

Hi David,

Does it mean there's no way to challenge this demand and it will be deducted from my Universal credit when it starts?
There's no mention of right of reconsideration etc.

As far as I can remember, at the time I wasn’t receiving PIP, as my claim was still being processed, and the council had just introduced the benefit cap, which led to a reduction in my Housing Benefit. Since my PIP claim was pending, I applied for a Discretionary Housing Payment. This was approved, and shortly afterward, my PIP claim was successful, resulting in the removal of the benefit cap.

Therefore, I don’t believe there was any overpayment, contrary to what is being claimed. This all occurred around 8 years ago, and there has been no change in my circumstances since then.

Hi David,

I searched through my old letters and found the following:

In late 2016, while my PIP claim was pending, they applied the benefit cap to my ESA and Housing Benefit. As a result, I applied for Discretionary Housing Payment (DHP), which was granted for a short period (2 months). This is the exact amount they are now demanding back.

In early 2017, my PIP was approved, and the award was backdated to late 2016 (around the same time I applied for the DHP). I don’t believe I was paid anything extra, so this may be a calculation error.

Also, isn’t there a six-year limitation rule for recovering overpayments?

The letter they sent me is just an invoice, with no mention of the right to a mandatory reconsideration, review, or appeal.