Policy aims
Norwich City Council will take firm but fair action when recovering overpaid Council Tax Reduction.
The aim of this policy is to act as a guide to the recovery of overpaid Council Tax Reduction
1. What is overpaid Council Tax Reduction?
Overpaid Council Tax Reduction is any amount which has been awarded to you, but to which you are not entitled. This could happen because you did not inform us of a change in your circumstances, or that you failed to report changes in income or household circumstances that affect your entitlement.
We must establish why this has happened, how much has been overpaid and the period it covers. We then decide whether we should recover the amount.
You must tell us about changes in your circumstances yourself, as soon as possible. Do not rely on anyone else to tell us. Even if you have told another office such as the Department for Work and Pensions (DWP), you must still tell us.
The amount that you have been overpaid is the difference between the amount of Council Tax Reduction you actually received and the amount that you should have received.
2. When overpaid Council Tax Reduction must be paid back
In almost all cases, overpaid Council Tax Reduction has to be repaid, even if it was paid because of our error.
However, you may not have to repay the amount if it were an 'official error' and you could not reasonably have known that you were receiving more Council Tax Reduction than you were entitled to. It is therefore important that you check your notification letters and bills carefully to check that your award details are correct.
If you have been overpaid, we will write to you giving the reason and a statement of the dates and amount. If you do not understand your notification letters, you must contact us immediately so that we can explain them to you.
3. How we work out who needs to pay
When we work out from whom we need to recover the money, some of the things we look at are:
- what caused the reduction in entitlement
- who received the payment and when were they notified
- who could have known that the reduction being paid was too much
4. Informing you of overpaid Council Tax Reduction and the right of appeal
When an award of Council Tax Reduction is revised, resulting in a reduction or withdrawal of the award, you will be notified in writing.
If you do not agree with the decision, you can ask for this to be explained or reviewed or you may appeal against the decision. Any request for us to do any of the above should be in writing within one month of the date of the letter informing you about the decision.
5. How to repay overpaid Council Tax Reduction
Awards of Council Tax Reduction offset part or all of an individual’s Council Tax liability. Any awards granted are based on a full income assessment and are subject to review if circumstances change.
Where you have received too much Council Tax Reduction, the amount will be added to your Council Tax bill. You will receive a new Council Tax bill and this will show any remaining entitlement to Council Tax Reduction and the balance to be paid.
6. Failure to pay
If you fail to pay your Council Tax balance, usual recovery procedures will take place. If a taxpayer has not paid enough to clear their liability, we may have to ask for additional payments to be made to ensure that the liability is cleared in full during the current financial year.
Failure to pay the debt, or reach an agreement to pay the debt, will mean that we secure the debt at the magistrates court to enable us to take further steps to recover the debt. This might mean an attachment to earnings or other benefits including Universal Credit. It may also mean a referral to an enforcement agent.
7. Further information
- Council Tax Reduction Scheme
- Apply for Council Tax Reduction
- Appeal a Council Tax Reduction decision
- Valuation Office Agency (for Council Tax / Council Tax Reduction appeals)
V1.0 October 2025
