housing benefit visit

shirleyc

Hi,

General enquiry really, We are in receipt of housing and council tax benefit due to hubbies income and im not working (have a 2 year old at home). When we applied our situation was hubby bringing home £250 a week plus our tax credits. All has stayed the same income wise, but recently hubby got a PPI refund and HB have written to us to do a standard visit to check circs all the same etc. He only got the PPI about a week ago. They want to see bank statements on their visit. Do I need to ring them to inform them of the PPI, have never claimed before so unsure as to whether this is classed as an income or not?

Many thanks in advance!

mynameistallulah

Was the refund over £6,000, or take your capital over that amount? If not, it will not affect your claim.

shirleyc

Thanks for the reply.

He got back just under £6500 but £750 was sent directly onto a current loan, 3k he has paid of on his credit cards leaving him with about 2.5k.

We do have the proof of him making these payments it seemed sensible to clear 3k on his ccard.

mynameistallulah

shirleyc wrote: »

Thanks for the reply.

He got back just under £6500 but £750 was sent directly onto a current loan, 3k he has paid of on his credit cards leaving him with about 2.5k.

We do have the proof of him making these payments it seemed sensible to clear 3k on his ccard.

Just to be aware for future reference, paying off non priority debts can be seen as deprivation of capital, so you should always check with the LA before doing so.

Give the officer your statements when they come over, little point in contacting them beforehand.

shirleyc

How would it be considered a non priority debt, he only has his loans and c cards we have no rent or council tax arrears. We also paid an extra £150 ontop of our normal rent.

So new to all this housing and council tax benefit! So all advise appreciated. We only get about £60 a month HB and £20 a month ctax benefit.

Once again thanks for your advice!:)

BurnleyBob

A non priority debt equals one that doesn't need to be paid at a rate above a certain minimum so, far example, if you were only required to pay a minimum off £100 per month for the credit card but chose to pay more then they may think you did so to get back under the £6K threshold. A priority debt often entails a bailiff at the door with a court order saying things like "cough up what you owe or else."

When in receipt of means tested benefits, as Council Tax and Housing Benefit are, then claimants need to inform their Local Authority of a change in circumstances when their capital and savings exceed £6,000 because anything above that figure impacts the amount of those benefits that they are entitled to.

shirleyc

oh OK I see, but technically he did not get over £6k as £750 was paid directly back into his loan account.

Surely they would see he paid 3k of as a pose to 1k taking it properly under the 6k limit, our benefit is so low it would not have benefited us financially in a huge way.

So in a way we will get looked at as suspicious for choosing to use his ppi refund to pay towards his credit cards debts, he has no debts other than those and his loans to keep the money in his bank would have been silly for the interest rate he pays on his card..

Poppa_G

How recent is recent? Wouldn't the previous month's bank statement do?

Not completely legit I know, but you haven't really gained anything. Just got money back that you've already paid out.

shirleyc

He had the money into his account a week ago. Not sure when he gets his bank statements i dont pay attention to that sort of thing, they are visiting us next Thursday.

Many thanks for everyones advice I dont want to get into trouble with them!

BurnleyBob

shirleyc wrote: »

oh OK I see, but technically he did not get over £6k as £750 was paid directly back into his loan account.

Surely they would see he paid 3k of as a pose to 1k taking it properly under the 6k limit, our benefit is so low it would not have benefited us financially in a huge way.

So in a way we will get looked at as suspicious for choosing to use his ppi refund to pay towards his credit cards debts, he has no debts other than those and his loans to keep the money in his bank would have been silly for the interest rate he pays on his card..

Yes, I agree with you. Unfortunately, the rules are black and white to those tasked with implementing them. If they can prove that at any juncture during your claim that you had (so much as) one penny in capital and savings above £6K that you needn't have fallen below without choosing to do so by repaying debts that you weren't obliged to imminently then you can expect to be penalised. The change of circumstance rule to them is sacrosanct.

The good news is from what you've wrote is that penalty will be tiny in monetary terms.

sniggings

It may be worth a call just to get it on the computer in case you get a jobs worth on your visit, either way you only got the money last week and you will be telling them this week but as someone who has just had their benefits stopped through one missed atos appointment they can be strick, I think I would just give the call centre a ring and get it logged.

As for the non priority debt, the other poster may be right I don't know but for me a credit card bill is due a full payment each month as on the bottom of my old ones (none now:j) it said balance due, the min payment is a choice, min payment or full payment, either or is due each month.

But as the OP was just over £6k and got below it even before paying the credit card I cant see it being an issue, I think 16k is the cut off for benefits on a sliding scale.