As with any benefit there will be times when Universal Credit is overpaid, so there will be issues of whether the person has actually been overpaid, whether it is recoverable, who from,how much, and recovery method and rates.
Housing Benefit overpaid as not stopped in time when claimed UC?
This can either be recovered as an overpayment, subject to the deduction rates, or can be treated as unearned income and recovered in full from the first UC monthly payment - if the Local Authority act quickly enough. Click here
for more information.
Diminution of Capital
These rules, given in part 4 regulation 7 of the above regulations, are similar to the rules under Housing Benefit. They ensure that where an overpayment has been caused by failure to declare capital, the overpayment amount doesn't stay the same forever but diminishes in line with the capital reducing.
Every 3 months, for such an overpayment, the capital is recalculated so that the overpayment amount is diminished.