
Mid Devon District Council has repaid £330,210 to 402 tenants after a rent calculator error overcharged social housing residents. The council is still awaiting DWP guidance on Universal Credit cases.
Mid Devon District Council has repaid more than £300,000 after a rent calculator error led to incorrect charges for social housing tenants. A 2024 audit found the council had overcharged about 1,200 tenants and undercharged another 1,600. Officers said refunds have so far been made to 402 tenants, totalling £330,210, including £13,775 in compensation for those who sought it and cases where housing benefit was corrected.
Council finance chief Andrew Jarrett told the authority's cabinet the refunds were within "all the refunds in its own gift." The council has relied on legal advice to refund six years' worth of over-payments, though the issue dates back to 2002, the Local Democracy Reporting Service said.
The council said it will not reclaim money from tenants who underpaid. For those who paid rent through benefits, it is working with the Department for Work and Pensions (DWP) to find a solution. Jarrett said the DWP "still can't confirm when they are going to let us know" how it wants to handle cases involving Universal Credit. "Clearly the financial provision we made for this issue nearly two years ago still includes the fact we may have to repay those monies to the DWP, so it will be one area of the public sector sending money to another but it will be a cost to this council but we have made a provision for it," he said.
The council said it would continue communicating with all affected tenants to ensure they "are fully aware of their position and the steps being taken."
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