Housing Benefit and Savings Statements

bode

I have an elderly relative who needs to apply for Housing Benefit as she has reduced her working hours.

She was forced to sell her house due to debt problems and as part of a divorce settlement years ago it was a verbal agreement that the proceeds of the house sale would also go to the children. The relative used her share of the proceeds to pay her debts and has nothing left and her children were given their share about 3 months ago.

When it comes to claiming Housing Benefit, will the large transfers of money be a problem or will they look beyond the 2 months of bank statements that she is going to provide?

The relative has savings of £1000 and is on a low enough income to be entitled to HB.

Oldernotwiser

Why would she give large sums to her children when she needs to claim means tested benefits? I've never heard of a divorce settlement being based on a verbal agreement and I doubt that anyone else has either!

dmg24

Yes, the transfers are likely to be a problem. The debt settlement may be allowed, depending on the type of debts they are and the amounts involved, but she will be counted as still having the money she has given to the children. How much has she given out?

jetta_wales

If there is documentation from the divorce to prove that the money was to go to the children then showing them this will be all that is necessary to avoid deprivation of capital allegations.

Oldernotwiser

"A verbal agreement isn't worth the paper it's written on." Sam Goldwyn

dmg24

jetta_wales wrote: »

If there is documentation from the divorce to prove that the money was to go to the children then showing them this will be all that is necessary to avoid deprivation of capital allegations.

The OP says it was a verbal agreement.

jetta_wales

Ahh verbal agreement, missed that bit. Yeah that won't fly.

Could leave it a few months before claiming so they're not on the recent statments Inguess.

Oldernotwiser

jetta_wales wrote: »

Ahh verbal agreement, missed that bit. Yeah that won't fly.

Could leave it a few months before claiming so they're not on the recent statments Inguess.

Got any more advice on committing benefit fraud?

jetta_wales

Oldernotwiser wrote: »

Got any more advice on committing benefit fraud?

That wouldn't be fraud at all. She would likely be judged not eligible to the benefit at present so don't claim it. In a few months she would be so could claim it then. You might not like it but it would not be fraud and we're talking about somebody elderly who still works not some teen with 4 kids by 4 dads in a huge house all paid for who's had a windfall and still wants their benefits.

dmg24

jetta_wales wrote: »

That wouldn't be fraud at all. She would likely be judged not eligible to the benefit at present so don't claim it. In a few months she would be so could claim it then. You might not like it but it would not be fraud and we're talking about somebody elderly who still works not some teen with 4 kids by 4 dads in a huge house all paid for who's had a windfall and still wants their benefits.

Did you mean to be so offensive to young single mums?

The fact is that the OP's relative knows that they will fall foul of the deprivation of capital rules, so intentionally delaying their claim in the hope that the LA won't check their bank statements has all the elements of fraud. In fact, such a calculated move is even worse than giving away the money in the first place.

OP, when was the house sold?

jetta_wales

It's not in the hope of them not looking at bank statements it's knowing that there's only so far back they go to consider your finances.

I was a young Mum myself (19) but if I offended teen Mums with 4 kids by 4 dads on full state support then no I'm not bothered by that lol.