We represented our client under exceptional case funding in relation to London Borough of Lambeth's attempt to recover a £16,342.32 overpayment of Housing Benefit. The Court of Appeal ruling in this case established important protections regarding procedural unfairness for litigants who lack capacity, as described in an earlier news piece. In June 2026 the authority conceded: just two days before a further First-tier Tribunal hearing, Lambeth issued revised decisions that significantly benefit our client, writing off the Housing Benefit overpayment.

Background & First-tier Tribunal

The overpayment of Housing Benefit resulted from the authorities decision to issue a non-dependent deduction from September 2014 to October 2018, on the basis that our client's son was still residing at the property with her. The reduction to our client's entitlement to Housing Benefit put the rent account into arrears, leading the local authority to initiate Possession Proceedings in the County Court. DP appealed this decision to the First-tier Tribunal, which dismissed her appeal in January 2021.

Upper Tribunal and Court of Appeal

We assisted our client in her further appeals to the Upper Tribunal (2023) and Court of Appeal. We agreed with the authority a Consent Ordering adjourning the Possession Proceedings pending the outcome of our appeal. The Court of Appeal held a rolled-up hearing in 2025. In a reserved judgement, the Court agreed, granted permission, and allowed DP's appeal. The Court ordered that the decisions of the First-tier Tribunal and Upper Tribunal be set aside and remitted our client's case to a new First-tier Tribunal, to undertake a complete consideration of the issue raised by the appeal.

New appeal to the First-tier Tribunal

The Possession Proceedings remained adjourned, pending the outcome of DP's new appeal to the First-tier Tribunal.

In June 2025 our client was notified that her appeal was listed for a case management hearing on 1 July. We corresponded with the Tribunal and the local authority regarding evidence in our client's new appeal. Then, on 29th July the authority notified us that due to the passage of time they were unable to locate evidence related to the appeal and had decided to revise the Housing Benefit overpayment decision of October 2018. On 30th June the First-tier Tribunal issued a decision notice striking out the lapsed appeal and vacating the hearing of 1st July, on the basis that the decision as revised would be more advantageous to our client than the appealed decision was.

The authority has written off the outstanding balance of Housing Benefit overpayment and is no longer seeking recovery. It is in the process of making amended decisions regarding our client's entitlement to Housing Benefit in the period 2014 to 2018, significantly affecting the rent arrears. This is a very positive result for our client which also has a considerable impact on the ongoing Possession Proceedings, in which we continue to represent DP.

Our client was represented by Joint Head of Housing Claire Wiles and Solicitor Clemence Coignard.