Rent Arrears

I was overpaid £850 in housing benefit at the beginning of last year, which I need to pay back.

I have been sending the council numerous letters regarding this matter, as there were a few things they didn't follow before sending me some letters, plus another address being under my name, which I have never lived at.

Anyway in April I contacted the council, to set up a payment plan, and the lady on the phone said that for someone on benefits the minimum amount each month would be £47, I work(part time)so I said I would pay £50 a month, as I was really worried that she would say any lower offer would be refused, even though I can't pay £50 a month.

My husband wrote a letter to the council saying that £20 is the most we can afford each month and to contact us if this was no good. We have still not heard from them about this.

I felt I should at least have made a payment since(I have paid £10 but no more)and at least until we hear from them, but my husband said to wait for a response.

Then last week we received a letter from them, saying that £100 is outstanding and if we do not pay within 7 days court action will be taken, which will add more charges.

I am sick with worry, they haven't mentioned the letter we sent at all, and I have bad credit anyway so really don't want it to go to court.

What can I do?

I have got a grant from uni which means I can pay the £100, but there is no way I can afford £50 per month.