I spent my savings as Dss were taking so much off my benefits

nicky_savage

I had tried to keep my savings as they were my security for emergencies etc, the Dss were taking quite a lot from my benefits so I decided to pay all my debts 3,500 to my mum and other money I had borrowed from friends..
Will the Dss accept this or think I spent the money so I could get full benefits?..
What proof will I need, will a letter from from the people I have borrowed from be enough?.
Please help..
Nicky :0)

le_loup

So, debts to mother and friends. Not banks building societies or loan sharks.
Well, I'm suspicious already and you're feeling guilty already.
So what do YOU think the DSS will think?

atush

Nope, they will still take the money off you, as you have fallen foul of Deprivation of assets.

Shoulda given the money back Before you claimed benefits.

lisyloo

No you won't get away with it - it's called deprivation of assets.
You'll probably still be counted as if you had the money.

Why were you saving when you had debts?
There are several reaons why that's a silly position including this benefits scenario.

LLouiseR

The question that the DWP will ask is 'did this person deprive themselves of capital (in this case savings) in order to gain benefits?'
and, from my understanding of your post you did, There appears to be no immediate need for you to repay the money that was due and the aim was to gain further money.

If the DWP are satisfied that you did deprive yourself of capital deliberately then they will still treat you as if you had that money, that is you will still have the same deductions, just not the money. They may decide that some of that money has been 'legitimately' spent and reduce your savings balance accordingly and therefore your dedutions could be less.

The DWP can also take into account the fact that they were expecting you to live on the money and that your savings would have reduced accordingly, so if you were having £10 a week less benefits because of your savings its not unreasonable for you to have spent £520 of your savings over the last year, for example.

and of course they will want proof that the money was owed and probably what for. I'd keep any receipts to show them for any monies spent.

pqrdef

nicky_savage wrote: »

I had tried to keep my savings as they were my security for emergencies etc

The Welfare State doesn't recognise any such concept. The only thing you're allowed to do about emergencies is pray they don't happen.

greenface

should have hidden them better before you claimed anything or !!!!!! as you were saving it. How did they know you had savings ?

redmalc

The response from Dealerwins is spot on,i looked at some of the other boards on MSE and you get a total different view on society,some people agree with deliberately hiding money,racking up debts and then going bankrupt and living of benefits.

ani_26

pqrdef wrote: »

The Welfare State doesn't recognise any such concept. The only thing you're allowed to do about emergencies is pray they don't happen.

Love it :rotfl::rotfl::rotfl::rotfl:

RAS

nicky_savage wrote: »

I had tried to keep my savings as they were my security for emergencies etc, the Dss were taking quite a lot from my benefits so I decided to pay all my debts 3,500 to my mum and other money I had borrowed from friends..
Will the Dss accept this or think I spent the money so I could get full benefits?..
What proof will I need, will a letter from from the people I have borrowed from be enough?.
Please help..
Nicky :0)

Since you are allowed £6,000 in savings before they have any affect on your entitlement to benefits, this was really unnecessary.

poppasmurf_bewdley

And I'm sure you have proof of the borrowings from your Mum and friends - like bank statements showing £3.5k being transferred from your Mum's bank account to yours, plus statements from your friends and your own statements showing receipts of the loaned money, and lots of signed agreements and IOU's. Plus, of course, the DWP would want to know what you spent these loans on, and expect proof to be shown.

Or was it all done in cash?