housing benefit/mortgage fraud

twinnymum

Hi there

Im seeking some advice on behalf of my brother. His partner purchased a house 8 years ago and her name is on the mortgage with her father also. My brother moved in with her a year ago and he pays her keep every week. She has just been called into the benefits fraud office because apparently she has been claiming housing benefit since she and her father bought the property. So basically getting the mortgage paid for her. Her father has had no knowledge of this and she doesnt think she has done anything wrong! The benefits amount to over 30k. Can anyone tell me what is likely to happen to her now? Will she lose the house? Be jailed?

Very worried!

Thanks

Caz3121

how much these overpayments are will depend on her circumstances

It sounds like she has been claiming benefits as a single person

when your brother moved in all benefits would have been calculated on household income as she became part of a couple

what was the situation before he moved in? does she have children?

Has she been claiming housing benefit as in rent or has she been claiming mortgage interest?

alwaysonthego_2

She would not get HB for a house she owns.

twinnymum

Hi, thanks for your replies. It is not that they have been claiming as a couple or single or anything like that which is the issue, it is the fact that she has been claiming HB for a house which she legally owns along with her father. Common sense suggests that you shouldnt be able to do this but she has been for 8 years!

I really do not want anything bad to happen to her but I can see this being quite a serious offence?

Oldernotwiser

If she has been claiming rent for the house that she actually owns, she must have nor only claimed fraudulently but also have forged documents like a lease/ rent book or similar. I would think that they would prosecute this rigorously and she might even be looking at a custodial sentence. I don't know whether they would let her repay the money in installments or whether she would have to sell the house.

Edit: Why don't you want anything bad to happen to her - do you think she should be given a medal?

alwaysonthego_2

Oldernotwiser wrote: »

If she has been claiming rent for the house that she actually owns, she must have nor only claimed fraudulently but also have forged documents like a lease/ rent book or similar. I would think that they would prosecute this rigorously and she might even be looking at a custodial sentence. I don't know whether they would let her repay the money in installments or whether she would have to sell the house.

Yes it is likely that they will investigate and most likely prosecute as it is intentionally defrauding the benefits system.

AsknAnswer2

For any fraud over £2000 the fraud investigators have to refer the case for prosecution. In this case, there is no doubt that fraud has been committed as the HB application forms are very clear that HB is for a property which is rented to the person claiming the benefit.

It also asks the following questions (among many others):
"do you or your partner pay rent for this home?"
"Do you own your home or have a mortgage?"
"What is your landlord's address?"
"When did you or your partner start renting your home?"
"What sort of tenancy do you have?"
"How much rent do you or your partner pay, and how often?"
"How long is the tenancy for?"
"Has your rent changed in the last twelve months?"
"When is the next rent increase due?"
"Do you have weeks when you do not have to pay rent?"
"Are you behind with your rent?"


The declaration includes:

l I understand that this claim is made to you, my local council.
l I declare that the information I have given on this form is correct and
complete as far as I know and believe.
l I understand that if I knowingly give information that is incorrect or
incomplete, I may be liable to prosecution or other action.
l I agree that you will use the information I have provided to process

So, in short she would have had to answer a hell of a lot of questions untruthfully in order to get housing benefit. That is before you consider any false documents she may have provided in support of her application. Not a case of answering one question incorrectly on the form in error.

Given the level of deception, the amount of years of the deception and the amount of money received by the deception, I think she should be prepared for a custodial sentence. I've known people to go to prison for overpayments of £8000 and less.

No matter what penalty she receives, she will also have to repay all of the money and yes, she may have to sell the house to pay this.

twinnymum

Thanks all for your replies you have cleared it up for me now.

I think it is terrible what she has done and do not condone it at all. Just think its a terrible situation and it is likely to affect our family thats all.

Voyager2002

twinnymum wrote: »

Thanks all for your replies you have cleared it up for me now.

I think it is terrible what she has done and do not condone it at all. Just think its a terrible situation and it is likely to affect our family thats all.

Is it possible that what she claimed was not Housing Benefit, but some other benefit? As the posts above have explained, in order to receive Housing Benefit while living at a property that she owned, she would have needed to forge documents as well as telling a number of bare-faced lies (in writing). Not many people would have the sheer nerve to do this. Possibly there is some confusion somewhere.