Inheritance affecting council tax benefit

everever

Hi, its my first post so i hope it's ok :eek:. My dad is in receipt of housing benefit as he is self employed and earns under 10k a year. Earlier this year he was left a 20K inheritance which he paid straight into a private pension. The council have found out about this, is this going to affect the benefit he receives....he's really worried about it . He's worked hard all his life and has fallen on hard times recently. I hope someone can help, thanks x x x

CIS

The council have found out about this, is this going to affect the benefit he receives

If he didn't advise them of this then he would likely be prosecuted for benefit fraud once they found out.

thorsoak

everever wrote: »

Hi, its my first post so i hope it's ok :eek:. My dad is in receipt of housing benefit as he is self employed and earns under 10k a year. Earlier this year he was left a 20K inheritance which he paid straight into a private pension. The council have found out about this, is this going to affect the benefit he receives....he's really worried about it . He's worked hard all his life and has fallen on hard times recently. I hope someone can help, thanks x x x

Sorry - but if he has just inherited £20,000 he isn't still on hard times.

ruthber

Deprivation of capital

everever

Fair point, but he had no pension and is nearing retirement age so he felt this was the best use of the money. He's never claimed for anything before and didn't realize that this was the case...i'm worried now

lovetowinacar

everever wrote: »

Hi, its my first post so i hope it's ok :eek:. My dad is in receipt of housing benefit as he is self employed and earns under 10k a year. Earlier this year he was left a 20K inheritance which he paid straight into a private pension. The council have found out about this, is this going to affect the benefit he receives....he's really worried about it . He's worked hard all his life and has fallen on hard times recently. I hope someone can help, thanks x x x

Tell you what get him to tell the pension provider it wasn't his money and he shouldn't have paid it into his pension ....then send it to me. Then he can happily continue to claim housing benefit - problem solved... then he can continue to claim he has hit hard times - which currently he clearly hasn't since £20,000 given to him is pretty nice thank you...

Hopefully he will just get "done" for benefit fraud ..:rotfl:

ceridwen

O.P. - ignore the posters so far - it sounds like personal opinions/jealousy.

HOpefully someone knowledgeable will be along soon.

I presume it is only Council Tax benefit that your father is getting - ie no help with rent or anything else?

As far as I understand it - "deprivation of capital" only applies to those on Jobseekers Allowance. I doubt it applies to someone who is paying a lower rate of Council Tax on account of low income but is actually in work.

If the money is in a pension then it is not accessible until he retires.

I think the best way probably for you to resolve this would be to ring the Council for a chat about this - dont give your name, just make it a general query about "A relative of mine has done such and such....but their income is still less than £10k and their savings are still £whatever they are. Does this inheritance affect their C.T. benefit - as they no longer have it?" Then you will know for certain what the position is - but wont have risked your father getting into any trouble.

Make sure you speak to someone who sounds as if they actually know their job - so you dont get wrong information from someone who is pretty clueless about their job.

I doubt your father has anything to worry about in all honesty if C.T. benefit is all he is getting. He would have something to worry about if he was claiming JSA - but since he isnt - I very much doubt he has a problem.

Jowo_2

Rules relating to deprivation of capital, the intentional transfer of capital in order to increase elibility for benefits, is extremely complex. The reason these rules are in place is to enforce the expectation that those on means tested benefits whose status improves use their newly found income/capital to pay for their own ordinary household expenses. I think he needs expert advice from a welfare advice charity.

Somewhere in this huge list of complex docs are the guides for DWP decision makers (i.e. the staff) who review situations like your father.

http://www.dwp.gov.uk/local-authority-staff/housing-benefit/claims-processing/operational-manuals/housing-benefit-guidance/

I think the 'assessment of capital' related ones will give you an understanding of how means tested benefit claimants are judged who spend their capital on things other than their ordinary living expenses.

As far as I know, deprivation of capital can be applied to all means tested benefits, credits and allowances and it's certainly not restricted to JSA.

We have benefit claimants come onto this forum who are baffled that they are in the wrong to pay off non priority credit card debts, buy a new car and furnish their house top to bottom when they get an inheritance instead of paying their rent, council tax and groceries with it. We had a girl on here the other week who burned through nearly 20k in less than 48 hours in her hurry for it not to impact her income support, tax credits, council tax discount and LHA....

everever

He doesnt claim housing benefit, just council tax as it was crippling them. Obviously now it would have been better to live off the money instead of putting it into a pension but as he has ill health he was thinking of my mums future i guess. I dont require any more 'help' thanks as this site clearly just finds other peoples problems amusing

Indie_Kid

ceridwen wrote: »

As far as I understand it - "deprivation of capital" only applies to those on Jobseekers Allowance. I doubt it applies to someone who is paying a lower rate of Council Tax on account of low income but is actually in work.

There are also capital limits when claiming council tax benefit.

bestpud

everever wrote: »

He doesnt claim housing benefit, just council tax as it was crippling them. Obviously now it would have been better to live off the money instead of putting it into a pension but as he has ill health he was thinking of my mums future i guess. I dont require any more 'help' thanks as this site clearly just finds other peoples problems amusing

Your dad would be wise to seek further help as he could be prosecuted for fraud!

The CAB may be a good place to start and he may be wise to seek legal advice later on.

Deprivation of capital applies to all means tested benefits and council tax benefit is one of those.