Deprivation of Assets?

Fire_Fox

I have just found out that I will be unemployed come the end of January, due to a combination of being on a temporary contract and recent sickness absence. Assuming I haven't found an alternative job I should be able to claim JSA and council tax benefit.

I have a decent amount of savings, and also some 'debts' - I am still paying off last winters energy bill, three year dispute on service charges (leasehold property) and think I have lost the ability to pay by installments on council tax as ex-partner missed a DD payment. Plus it's Christmas coming up AND my boiler is booked in for a (probably expensive) service!

How much of these can I pay without it appearing that I am trying to defraud the benefits office? Is there an government explanation of how 'deprivation of assets' works somewhere on the net? If I pay off the council tax will they still allow benefits for it? I am not planning on drawing out cash and hiding it under the mattress, just making sure my outgoings are as low as possible if I do have to live on JSA for a while. Any money would be traceable to a legitimate source but my outgoings will be substantially more than normal.

Thanks!

mavvysmum

Fire_Fox wrote: »

I have just found out that I will be unemployed come the end of January, due to a combination of being on a temporary contract and recent sickness absence. Assuming I haven't found an alternative job I should be able to claim JSA and council tax benefit.

I have a decent amount of savings, and also some 'debts' - I am still paying off last winters energy bill, three year dispute on service charges (leasehold property) and think I have lost the ability to pay by installments on council tax as ex-partner missed a DD payment. Plus it's Christmas coming up AND my boiler is booked in for a (probably expensive) service!

How much of these can I pay without it appearing that I am trying to defraud the benefits office? Is there an government explanation of how 'deprivation of assets' works somewhere on the net? If I pay off the council tax will they still allow benefits for it? I am not planning on drawing out cash and hiding it under the mattress, just making sure my outgoings are as low as possible if I do have to live on JSA for a while. Any money would be traceable to a legitimate source but my outgoings will be substantially more than normal.

Thanks!

If you pay off your council tax and are awarded council tax benefit it will just put your council tax account into credit and you will then either be refunded or credit can be left on your account for next years charge.
As for the deprivation of assets thing, i never thought it included paying off debts but i might be wrong. Deprivation of assets cases i have come across in my job have all involved people suddenly "giving" large amounts of money to friends and family. It can be argued that paying off debts with savings when someone is in your position would be the wise thing to do.

cattie

Sorry to hear you are going to be jobless. You should have no trouble from the benefits office for paying any of the items you've listed from your savings. If you paid the council tax in one lump sum & then qualified for a council tax benefit, your account would be credited with the amount of the benefit.

Deprivation of capital is usually deemed when people start to spend large amounts on unnecessary items or holidays or to give to relatives in an effort to bring their savings under the limit laid down by DWP, to enable them to then qualify for means tested benefits.

john539

Keep the bills for all your reasonable expenditure.

It's surprising how much you spend when you're earning.

It's also funny how benefits staff forget forget how much things costs & how much people spend.

I got called in by Housing Benefit once to check where some money had gone & it was surprising how it all mounted up on just normal expenses you're used to.

Fire_Fox

Thanks all for your comments so far. My essential outgoings total £330 per month, those are the ones that keep me alive and out of court! My actual outgoings are of course much more. It is entirely possible that my overall outgoings will be three or four times the norm this month and next! I would like to know what the criteria are for working out what is deprivation of assets, luxuries and cash???

SuziQ

You need to get some serious advice re paying off debts as some CAN be classed as deprivation of capital,according to the numerous threads there have been on this forum on the subject!

alwaysonthego_2

SuziQ is correct you are not allowed to use capital to pay off debts unless you are in arrears, you can however pay the usual monthly payment out of your capital.

Fire_Fox

Who/ where would I get the advice from, please SuziQ? Is there a website or organisation that is best to contact? I know CAB are VERY busy.

alwaysonthego_2

Fire_Fox wrote: »

Who/ where would I get the advice from, please SuziQ? Is there a website or organisation that is best to contact? I know CAB are VERY busy.

There should be an advice number for the CAB that you can get advise from. Also if you can get a copy of the CPAG Benefits and Tax credits book you will find the info there.

cattie

Also, you could phone your local council, who should be able to give you a list of organisations in your area with experienced welfare rights workers who could help advise you.

Ames

I don't think 'normal' debts can be counted, but I think that things like utilities arrears can. It's worth checking as someone said though.