DWP withholding information

dollydiva

My neighbour has got himself in a right pickle, and tbh, I've not got much sympathy, but I'd said I'd ask here about this, so hey- ho.

Apparently neighbour won 20-odd grand on the lottery 3 years ago and kept schtum. Which he shouldnt have cos he was on income support with sickness component. He doesn't claim any housing or council tax benefits as he lives with his Mum...and no, he didnt tell her about his winnings either.

He gambles, so it's not like anyone seen him being flash or buying stuff cos as far as I can gather, he gambled the lot and has £4000 left.

DWP found out about these winnings due to interest being paid. So he owes them money and they've obviously stopped all payments and have said that according to their calculations he should have 12000 left.

But they won't send details of how theyve worked this out. He's now asked them twice and they keep saying that they don't have to tell him. This seems bizarre...how can he know if they've done the calculations right, if youre not allowed to see them? It's almost like Kafka.

They've still to tell him how much he owes them, and this is now 5 months later. They have no plans to Prosecute and have said so in a letter.

So firstly, is that right? That they don't have to show how they worked out the overpayment? What about the second bit about how much he owes them? Is it usual to take so long and again, do they not have to show o
what calculations they have made to reach their end figure?

He's been calling the national number as the local office who first interviewed him say they now have no dealings in his case.

ceecee1

I cant comment on whether or not they should show him the workings out - but as far as I know there should have been a schedule of the overpayment calculation which should have been sent to him.

VERY BASICALLY - and its not an easy thing to work out - they would say that 3 years ago he had £20k, if his benefit was £100 a week (probably not that much realistically but for ease of calculation) The amount of capital would reduce by £100 each week or £5,200 each year.

Just knock off the amount of benefit that he had been paid each week. If he should have £12k left, there should now be some balance of benefit due up to the time when they calculate that he has less than £6k.

That explanation over simplifies things but it might give you some insight.

dollydiva

Yeah, cheers that's what I figured. I just found it bizarre that someone would say 'okay, you owe us this amount of money , but I'm not going to tell you how I reached the figure that I say you owe'.

Imagine if the bank rang you up and said that??! Craziness!

Dd

rogerblack

The nastier part.
In general, you are expected to spend prudently from your savings to support yourself.
If you spend imprudently, then you can be held to still have the capital in question, even if you can prove you do not!
'Notional capital'.
If he's held to have savings of 12K, his benefits will be reduced by 12000-6000 = 6000. 6000/250 by 24 pounds a week, if he had no other savings. This notional capital is reduced by 24 pounds a week - 1200 pounds a year, and will stop affecting his benefit once it reduces below 6K - about 5 years.

However, in addition to his current savings, if just below 16K, this will reduce his benefit by 40/week - or if just above, eliminate it entirely.

He needs to get advice ASAP, the deadline on an appeal against the overpayment decision are tight, and only if he appeals within one month are things somewhat easier.

While some degree of overpayment is correct - due to him having the savings - the treatment of the gambled money as 'notional capital' may be challengeable, as it only comes into effect if there was a choice to do it.
It might be arguable that spending which might be frivolous for someone without a gambling addiction would not be, and may not be a rational choice for someone with one.