Do I have to declare compensation if claiming HB?

kc.ryan · 29 November 2012 at 11:37PM

I have been recieving HB and in Jan of this year I received just over £7,000 in compensation. I looked on the direct.gov website and it said people were entitled to HB up to savings of £16,000. DWP are now saying that they want around £2,000 off me for not declaring this and also for not declaring some dormant bank accounts i have but have not used in years! I cannot find anything about declaring one off compensation payments.

paddedjohn · 30 November 2012 at 12:00AM

Saving upto £16000 are ok but anything over £6000 will reduce the amount you are entitled to by £1 for every £250 so for every £1000 you have over the £6000 your benefit will reduce by £4/week.

paddedjohn · 30 November 2012 at 12:03AM

To be honest you will get quicker and better responses by posting this on the Benefits and Tax Credits board.

CAB_Wyre_Forest_representative · 30 November 2012 at 12:04PM

Hello k.c. ryan

This link will explain the capital rules but the rules say that you can claim if you have less than £16,000 but there is a sliding scale called tarrff income which means that over a certain level dependant on your age is deducted from your entitlement

http://www.adviceguide.org.uk/england/benefits_e/benefits_help_if_on_a_low_income_ew/help_with_your_rent_-_housing_benefit.htm#restrictions_on_how_much_rent_housing_benefit_will_cover

You need to let benefits know of all your income and although some may be disregarded it is better to give all the information and then you will not have to risk prosecution.

Do I have to declare compensation if claiming HB?

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