Benefits advice (JSA/HB) [merged]

mococomo

I've been signing on for a few months, on JSA and Housing Benefit. Declared all my savings (measely 2k). When I got housing ben, I was given 2k in back payments and now today, I suddenly received a statement for an ISA that I set up a year ago and then totally forgot about (honest to god - I've been sick the last year and very depressed and lathargic - one main side effect is memory issues)! It's my first and only statement, and i only received it as it was coming up to one year. I have 4k in this account. So now, suddenly, I have 8k in "savings", and I believe the threshold is 6k! Please help, what should I do? As it happens, I owe my friend 2k, should I give this back straight away, taking me back down to 6k? But then I'll still have to declare this isa, then won't they ask me about the 2k I've given back to him...ARGH! This is such a mess. I'm terrified they'll think I'm committing fraud when this is a genuine mistake.

Please advise.

mococomo

I've been signing on for a few months, on JSA and Housing Benefit. Declared all my savings (measely 2k). When I got housing ben, I was given 2k in back payments and now today, I suddenly received a statement for an ISA that I set up a year ago and then totally forgot about (honest to god - I've been sick the last year and very depressed and lathargic - one main side effect is memory issues)! It's my first and only statement, and i only received it as it was coming up to one year. I have 4k in this account. So now, suddenly, I have 8k in "savings", and I believe the threshold is 6k! Please help, what should I do? As it happens, I owe my friend 2k, should I give this back straight away, taking me back down to 6k? But then I'll still have to declare this isa, then won't they ask me about the 2k I've given back to him...ARGH! This is such a mess. I'm terrified they'll think I'm committing fraud when this is a genuine mistake.

Please advise.

dmg24

You need to declare all savings immediately. Be honest and tell them that you had forgotten about the ISA, as you have not had a statement for some time. Do not give away any of the money - the JCP will find out, and you will then be subject to investigation.

£2,000 over the lower limit will not wipe out your benefit entitlement by any means. Be honest and you are likely to have to pay back a small overpayment and have you future payments lowered slightly. Start trying to get rid of the money and you are likely to face an investigation for fraud.

Kimitatsu

If you have memory issues and you suffer from depression, then you need to go and seek assistance from the CAB or you local community legal service. The threshold STARTS at £6000 but you can still claim benefits, they will deduct benefits on a sliding scale up to £16000 when the cut off point means that you will get nothing in benefits.

Get somebody to help you put the information together, but do not give the money away as it could be seen as deprivation of assets, and ultimately a loan between friends unless it is documented by a solicitor cannot be proven.

You may have a small overpayment to pay back, but on the positive side you have just found £4000 that you had forgotten!!

shellsuit

But you still only have 6K in savings?

The 2K you declared and the 4K you have just found out about.

The 2K given in backpayments isn't savings, it's what you should have received in the past, but they have just given it to you in a lump sum later on.

I wouldn't class that 2K as savings, but that's just my own opinion.

dmg24

shellsuit wrote: »

But you still only have 6K in savings?

The 2K you declared and the 4K you have just found out about.

The 2K given in backpayments isn't savings, it's what you should have received in the past, but they have just given it to you in a lump sum later on.

I wouldn't class that 2K as savings, but that's just my own opinion.

Once the backpayments go into the bank they become capital, just as once a persons wages hit their bank account they do the same.

Kimitatsu/ always, can we merge the OP's threads please?

speedfreek1000

For the pay back of the loan to a friend it depends on if you get Contribution or Income based JSA?

Contribution is not effected by capital unless I'm mistaken? So you could do what you like with the money as you are not using deprivation (reducing savings) to gain extra entitlement.

If it's income then that's a bit of a sticky wicket as paying back money to a friend would probably be seen as deprivation of capital as there's no legal obligation to pay the money back. That's the rule of thumb but there are circumstances where that's not the case.

On the non declaration of the ISA and the 2k back payment I'd seriously suggest you get advice off the CAB/Welfare Rights on the best way to get everything declared and above board with both the DWP and Council. You need to get this sorted as a matter of urgency. A mistake is a mistake but if you fail to declare it/ignore it and the DWP find out (and they will) it will become a fraud investigation which you really want to avoid.

Remember both JSA and LHA/CTB have to be informed individually of any changes.

The way I see it is that problems could arise if you were over the 6k limit before the 2k back payment was received and also if you have failed to declare a change with in 30 days. which is why I suggest you get further advice from the above.