Tax credits with holding backdate error

winlisa01

Hi, I wonder if anyone can offer advice or the legality of this situation....Long story short - My background is I am the only person working in my family and my husband is my sons full time career, tax credits messed up our renewal form and basically put my husbands income as £22k p.a which took us over the tax credit limit incorrectly. I wrote a letter with all the evidence and they have now after 14 weeks of getting into arrears with rent and bills they have renewed my tax credit to the correct amount so I am expecting 2 cheques of around £150.00 each this week. When querying the outstanding amount the advisor happily told me that I still have £2350.76 outstanding - horrah i thought in my mind...but NO its not because they said they are holding the £2350.76 arrears until April 2012 in case my circumstances change or if I were in a position to earn more money, after 2012 if my situation had not changed then they would then release the amount to me!!!!!!

Question 1 - Is this legal for them to do this and what action can I take to have that money now as I need to pay my rent arrears as well as domestic bills.

Question 2 - How can they do this when it was there error and had they not made it I would have received this morning without doubt broken down weekly for the last 3-months instead of recieving a cheque of £4.64 a week!!! For every person who's claim was processed correctly they have received this money without having any with held so why are they allowed to do this to me?!

Question 3 - Advice really needed for what I now have to do please to try and get the money I should have been paid and not have to wait until April 2012 - I may be evicted by then x

conshan

Hi just reding your post has sent a shiver down my spine !!!!! Tax Credits also mucked up my renewel for last Tax year putting my Husbands estimated earnings through as final !!!!! I did not receive a final Award notice so did not realise until I phoned them with actual figures 3 wks ago,by which time they told me tough nothing they could do, I would have to appeal !!! i wrote a letter of complaint and sent it recorded delivery and could not belive my eyes on Thursday when a i received a letter from them admitting it was there mistake and they would amend figures which would mean we were due money from them. We had over estimated his income for last year so we qwed approx £ 2500.00 and i was asuming we would get lump sum in next week or so !!!! after reding your post i am now wondering if they will do the same to us, I am going to phone the lady who is dealing with my complaint on Monday to see what she has to say and I will keep you informed.
I think it is wrong for them to hold on to this money as if shoe was on the other foot and you owed them money they would want repaying ASAP.

conshan

Just a quick update, I have spoken to the Tax Credit helpline today and they have told me my backdated payment for last tax year 2010-2011 will be paid into my account this Friday coming and also the money owed to me since April 2011 for current year will also be paid and a new award with increased payments will be issued.:j
If you are still having a problem with them paying the money you are owed, you should write a complaint letter and explain what has happened and due to the fact they made the mistake not you you want them to release funds. It has only taken 3 weeks for me to get this mess sorted out and I believe this was because complaints dept got involved.
Hope it all works out for you.x