Stop on housing benefit

bagpussruth

Hi all,
A general query. I noticed that my housing benefit payment hadn't been made last week, making me overdrawn. So I rang the helpline today and was told it had been suspended due to a change in tax credits being reported. My tax credits have gone down by £5 a week and I only just received the tax credit award notice from them this week which I was about to post out to housing benefit. I asked the call handler why I had not received a letter informing me my benefit had been suspended - they told me the system does it automatically and does not send out a letter.

For them to have suspended my claim to stop a payment coming to me last week it mean't they had suspended my claim before I'd even received notification of the change. The only change I have had is a reduction to my tax credits due to the annual review- no other changes. I checked if there was any other reason for the suspension but the person confirmed there wasn't.

It seems utter madness to suspend someone's claim due to a drop in income and not tell them esp as they appear to have been informed about the change before I even knew about it. This seems to be a change in their policy as previously they have updated tax credit info automatically as the DWP provides it to them (I'd send my award notice in anyway just to be sure).

If this is now standard practice it seems pretty bad - at the very least they should let people know they are suspending their claim so they can chase the DWP for evidence of the changes to send in. Is this unique to my local council or has anyone else experienced this?

I tried to get them to sort it out today but they refused. I have to wait 48 hrs for a manager call back. I've complained through their complaints process online (15 day turnaround time) and raised it with my local counsellor.

I always tell them about changes as soon as they happen - I even sent my wage slips to them recently due to a very minor change in TAX/and NI. I don't think I could possibly be any more honest, and yet when anything changes I'm always left out of pocket and having to make endless phonecalls to try and sort things out.

grummps

bagpussruth wrote: »

Hi all,
A general query. I noticed that my housing benefit payment hadn't been made last week, making me overdrawn. So I rang the helpline today and was told it had been suspended due to a change in tax credits being reported. My tax credits have gone down by £5 a week and I only just received the tax credit award notice from them this week which I was about to post out to housing benefit. I asked the call handler why I had not received a letter informing me my benefit had been suspended - they told me the system does it automatically and does not send out a letter.

For them to have suspended my claim to stop a payment coming to me last week it mean't they had suspended my claim before I'd even received notification of the change. The only change I have had is a reduction to my tax credits due to the annual review- no other changes. I checked if there was any other reason for the suspension but the person confirmed there wasn't.

It seems utter madness to suspend someone's claim due to a drop in income and not tell them esp as they appear to have been informed about the change before I even knew about it. This seems to be a change in their policy as previously they have updated tax credit info automatically as the DWP provides it to them (I'd send my award notice in anyway just to be sure).

If this is now standard practice it seems pretty bad - at the very least they should let people know they are suspending their claim so they can chase the DWP for evidence of the changes to send in. Is this unique to my local council or has anyone else experienced this?

I tried to get them to sort it out today but they refused. I have to wait 48 hrs for a manager call back. I've complained through their complaints process online (15 day turnaround time) and raised it with my local counsellor.

I always tell them about changes as soon as they happen - I even sent my wage slips to them recently due to a very minor change in TAX/and NI. I don't think I could possibly be any more honest, and yet when anything changes I'm always left out of pocket and having to make endless phonecalls to try and sort things out.

There are rules and regulations appertaining to the suspension of a benefit. However, it seems that LA's as well as the DWP don't like them as they are far too winded and require them sending out various letters and asking that if it was suspended would it cause hardship. You can imagine where that would go!!!

So they now say that the computer has 'inhibited' the payment which lets them off the hook in complying with the regulations.

I too have this problem with the DWP. It appears that an inhibition is much easier and quicker to deal with - they just shut down the payment and don't tell you about it.
Currently this is with my MP.

Payments ceased in August and it was not until the following March that they wrote to me telling me it had been inhibited and not suspended! It was never put back into payment as the claim was terminated on the 29th March due to my failure to submit some information - information that they had never asked me to supply!! It was held that I was responsible for knowing what information they should have had - they (DWP) were not obliged to ask me or remind me.

bagpussruth

I don't understand how they could just make up a new rule and not have guidance on it. Person on the phone used the word 'suspended' I'm presuming the call will be recorded so it will be interesting to see there response to my complaint.

Does anyone know the law regarding them putting payments on hold or have any links to there guidance?

grummps

bagpussruth wrote: »

I don't understand how they could just make up a new rule and not have guidance on it. Person on the phone used the word 'suspended' I'm presuming the call will be recorded so it will be interesting to see there response to my complaint.

Does anyone know the law regarding them putting payments on hold or have any links to there guidance?

http://www.dwp.gov.uk/docs/hbgm-c8-suspension-and-termination.pdf

Please read the above link - it is very informative.

The DWP used the word 'suspended' in countless letters and telephone calls, they even used it in their submission to the Tribunal!

I then received a letter apologising for the use of that word, it should have read 'inhibited'.

I am arguing that the DWP should have enacted the Suspension Regulations which would have afforded me the chance to know what was going on, what I needed to do to solve the problem and for me to argue that any suspension would cause hardship so that they couldn't suspend the benefit.

It seems that an inhibition of a benefit payment actually does not feature in any regulation that I can find. It's a way of getting round things for the benefit of the LA's & DWP. You can't even appeal against an inhibition!!!!

They are now sticking to using that 'new' word which does not come with any guidance etc. Simply - put up or shut up!

bagpussruth

Mmm that's pretty bad. I will ask them to define what they have done to mine in writing I think so I have something to back me up when I take it further. Not looking to get anything out of it, just want to ensure it doesn't happen to other innocent people.

fluffymovie

Ok inhibited it isn't. Decision making and appeals regs 2001 state a claim can be suspended.

The reason the claim was suspended is like due to Atlas. Automated transfer to local authority systems and it's been in place for 12 months where TC tell HB about changes. It sounds like your LA have all changes to auto suspend which is silly but a possibility. It so happened that this coincided with their payment dates!
You would be entitled to bank charges if you can show it was this that caused them in my LA

bagpussruth

Would be interested to know if all local authorites have done this, or if I'm just unlucky!

mickey54

All Local Authority.

Not an option...

bagpussruth

From reading about it on the net they all get the data, but from there they can choose what they do with it. Some put all claims on hold, others write out for info or process with the information they have. Seems my LA have taken the harshest approach. If I'd had the info at the time I wouldn't mind but its silly if they are getting the info before the claimant.

grummps

fluffymovie wrote: »

Ok inhibited it isn't. Decision making and appeals regs 2001 state a claim can be suspended.

The reason the claim was suspended is like due to Atlas. Automated transfer to local authority systems and it's been in place for 12 months where TC tell HB about changes. It sounds like your LA have all changes to auto suspend which is silly but a possibility. It so happened that this coincided with their payment dates!
You would be entitled to bank charges if you can show it was this that caused them in my LA

Could I ask a question? Does inhibit replace suspension?
Or I should say when is it an inhibition and when is it a suspension?

Surprisingly, my problem was also related to WTC's!!!!. The Pension Credit award made included details of my WTC's and was for a period of 4 years (AIP).
After 8 months the payments stopped 'because of information downloaded to their computer by Tax Credits'. That was it. I wrote many letters and made many telephone but received no replies. Then in March I received a letter telling me iy had been suspended, then they terminated it 12 days later.

Do the PWP - Pension Service have the same set up as you mentioned?

I need them to admit that it was a suspension, but they now say no it wasn't - the computer inhibited payment and there is no appeal or argument against it.

catz1ct

Your local authority would have received something called an ATLAS file directly from HM Revenues & Customs for an update on your tax credits. (Your LA will normally get this before you do!) When this comes through most claims are automatically suspended this is because at that stage they don't know if your new tax credit award has gone up or down so this is why your claim has to be assessed and checked. The way it is done normally is that all claims that come through this way are dealt with on the same day but I guess this varies by local authority, it should be done this way really to avoid any disruption but I guess it depends on staffing levels.

How would you feel if your claim wasn't suspended and they received the information and you had an overpayment of hundred of pounds? (YES it does happen). You may not see it this way but its really done for your benefit.

In regards to the suspension letters our LA turned them on and then "the people above" told us to not send them because they were confusing? I personally think they were just trying to save money on post and they also didn't like it because it generated more calls to the call centre which makes their stats look bad.