Deprivation of Assets.

Andy_Colombini

Sorry.I wasn't sure how to start a thread. Do I have start again ?

agrinnall

Andy, welcome to the MSE Forums :j.

Your post looks a lot better now, but to avoid getting replies mixed up with those for the OP copy what you've done to a now thread.

Go to the top of the page and you'll see a chain of forum pages, ending with Deprivation of Assets. To the left of that is a link to Benefits and Tax Credits, click on that and you'll see the New thread button,

McKneff

:):)

mmm whhaaa

hippy-chicy

Just to add something to the original posters query re deprivation of capital.

If you can show the decision maker proof of the lump sum you received, proof that you were in a DMP and that you have cleared the debts. e.g statements showing balances settled I would be very surprised if you would be considered to have deprived yourself.

I'm a decision maker for HB/CTB but If i was to look at a claim based on what you have written in your initial post, I wouldn't make the decision that you had deprived yourself.

Andy_Colombini

Many thanks hippy chicy, I only have 1 card and it was maxed when I took the money, so I cleared it.

It was £900 and I then asked for a reduction in credit limit to £200, for obvious reasons.

I sent a statement to the DWP in question to show that I had paid that off, and they wrote back and aksed me "why I had cleared the total debt"

I really don't know what to say

Thanks for your help

Caz3121

Andy_Colombini wrote: »

My parents are in their late 80s and live in Italy, they had never seen their grandchildren and one of the reasons I took out the money was to take them to Italy to spend time with their grandparents as well as have a holiday that we have never had together. This cost was proportionately around half the money I received, I had my car fixed, I gave a little money to my older son (aged 29) because he was having difficulties, and the rest was spent on what can only be called fun things. At no stage was there any intention of trying to defraud anyone or to increase my benefit entitlement.

Today I received a letter telling me that I had £12700 (they called it notional) in the bank and therefore due to this I was not entitled to any income support and consequently no other benefit... since the 23rd February; this has taken them 8 months to come to this conclusion, based on what they called deprivation of capital.

There are two issues here - the deprivation of capital and the ongoing ability to assistance
With £14k in the bank your means tested benefits would have been reduced by £1 for every £250 in excess of £6k...so £32 per week
Some expenditure would be classed as reasonable such as fixing your car, a small holiday, replacing a cooker etc. Others such as giving money away and excessive spending will not be so they will indeed treat to as still having the money.

If they have decided you have £12,700 and are calculating your benefits in that way I am not sure how you can appeal this however if you are paying your own rent and council tax now it is only a matter of months before you will have spent £6,700+ and then be entitled.

You should be able to apply for housing benefit on low income, they will include your pension, tax credits and the "Tariff income" (£27 per week on £12,700 savings) depending on your LHA rate you may or may not get any help.
Your tax credits also seems very low, tax credits will not count savings, notional or otherwise (only interest over £300) Might be worth checking what figures they are working from or is it maybe the payment for the second child is not through yet?

If this has taken so long, have you been receiving any housing benefit in this time? have they asked for a repayment? paying 8 months rent will have taken you well within the £6k

Did you get any advice before opting to take your pension?

Andy_Colombini

Thanks Caz3121 for your post. As far as advice regarding my pension was concerned, I spoke to the IFA who dealt with the whole thing and I told him I needed the money then.

At the time, the market seemed to be plummeting and I decided that the value of th very small fund was decreasing too rapidly, so I made the decision based on that.

Yes, I have been receiving HB and CTB but these will now be suspended, which does cause me a little problem.

As far as the deprivation of capital is concerned, once again, I had no intention of trying to maintain benefits, and the spending was not made for this reason. It was merely needing take my children away to see their grandparents etc... There was no intention to defraud or gain an advantage.

Thank you for your interest