Notional capital and welfare benefit

Dellgirl101 · 1 June 2011 at 12:03PM

Hello,
My friend has been summoned to answer charges that he has knowingly got rid of notional capital in order to gain welfare benefit. He's been pleading not guilty but I've done some reading and thought that a guilty plea with explanation may be best. To cut a long story short, he's unemployed for the last 3 & 1/2 years. He's borrowed money to do some needed work in the house. However the benefit officer saw this and told him that this "notional capital" prevented him from receiving benefits. In his ignorance he gave back the money or most of it I think with the argument ridding d himself of debt and possibly bankruptcy should he not get a job in near future is better for his overall welfare/welbeing. He also thought that it didn't seem right applying for benefit and at same time incurring debt. Can these arguments stand up before a trial? He's really worried about this

. Thanks for all the help.

viktory · 1 June 2011 at 12:18PM

How much money did he borrow? And did he give the money back intact or use to pay off debt as your OP is not clear. Does he have receipts to show any purchases made or debts paid?

Dellgirl101 · 1 June 2011 at 12:33PM

I think the amount borrowed was approx. £38,000. He's paid back to the lender. not sure how much but he said it's most of it. I think some was used to sort out radiator problems - not sure of receipts but I can verify with him.

dmg24 · 1 June 2011 at 12:36PM

You talk about a 'trial', how far has this case gone?

dmg24 · 1 June 2011 at 12:47PM

　
29548 Money which a person gets to pay for essential repairs to or to improve the home is disregarded to give time for the work to be done if
[FONT=FBIDP H+ Helvetica,Helvetica][FONT=FBIDP H+ Helvetica,Helvetica]
1. [/FONT][/FONT]as a condition of getting the money it has to be used to pay for those repairs and improvements [FONT=FBIDP H+ Helvetica,Helvetica][FONT=FBIDP H+ Helvetica,Helvetica]and

2. [/FONT][/FONT]the person is going to use the money to pay for that work.
The period of disregard is 26 weeks or longer if it is reasonable from the date the money is paid1.
[FONT=FBIDP H+ Helvetica,Helvetica][FONT=FBIDP H+ Helvetica,Helvetica]
Note: [/FONT][/FONT]The money can be a loan, grant or gift. The condition that it has to be used for the repairs and improvements does not have to be in writing.

Was the work essential?
Was it borrowed specifically to do the work?
Who on earth would lend £38,000 to someone who is long term unemployed?

Dellgirl101 · 1 June 2011 at 12:52PM

A don't know if trial is the right term. He's said he had a summons to attend an hearing. As far as essentials in terms of work on house these details i don't know, however, his claim is that the money was borrowed for that purpose. Who lent him it, I didn't ask that much. I guess these are things he will need to clarify/justify at his hearing?

real1314 · 1 June 2011 at 1:15PM

Dellgirl101 wrote: »

I think the amount borrowed was approx. £38,000. He's paid back to the lender. not sure how much but he said it's most of it. I think some was used to sort out radiator problems - not sure of receipts but I can verify with him.

Ok, when you say "lender" was this a financial institution? Or an individual?

Was there any documentation to support the loan?

And £38k for "radiator problems" ? Erm was the problem that the walls they were fixed to needed re-building?

:cool:

dmg24 · 1 June 2011 at 1:17PM

If he has been invited for an interview under caution it is exactly that, a taped interview.

I think that, as much as you are trying to help him, you don't know nearly enough about the facts of the case to give any constructive advice. He needs to go and be honest, but there is something that does not add up in his story.

Dellgirl101 · 1 June 2011 at 1:29PM

I will have to agree with you dmg24. Thank you all for the input, there're food for thought here.

dodger1 · 1 June 2011 at 2:37PM

Where does a long term unemployed person get £38,000 from to repay a loan?

Hammyman · 1 June 2011 at 4:02PM

If the £38k was to replace a roof falling off then thats OK. If the £38k was to build an extension, thats not OK.

Notional capital and welfare benefit

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