OAP £12,000 out of pocket after 9-year error with rent benefits

A PENSIONER who mistakenly overpaid his rent by £12,000 has been refunded just £350.

George Budge, from the Gilmerton area of Edinburgh, retired nine years ago and has been paying more than double what he should have for the council house he shares with his disabled wife, Shirley, 75.

He was entitled to housing benefit that would have slashed his 70 a week rent to just 33, but didn't know that he was allowed the additional benefits.

But when he approached the council they were only willing to refund him 350.10, saying they are bound by Westminster legislation that means councils can only backdate benefits for older people by three months.

The 74-year-old said: "Since I retired, I've been paying double the rent I should have been.

"I should have got a reduction right away when I retired but I didn't know.

"Even if I am in the wrong for not contacting them, they should be willing to pay it back.

"It comes to a lot of money; it's thousands of pounds that I've overpaid.

"I'm not asking for something I'm not entitled to. All I'm asking for is money I am due."

Mr Budge only realised he was entitled to the benefit when he received a letter from the council last year stating that his rent was to rise to nearly 90 a week.

After requesting a meeting with council officials, they told him he had been overpaying.

Mr Budge's councillor, Ian Murray, said: "I know that the council has only paid him back for three months because of legislation, but it has to use some discretion.

"If George Budge owed the council ten years' rent he would be pursued vigorously.

"There must be a way that they can make sure that a 74-year-old pensioner is not financially disadvantaged."

A spokeswoman for the City of Edinburgh Council said: "This is an unfortunate case and we would encourage people to get in touch with us immediately if they have a change in their circumstances."