Housing benefit

biffy6

I had my income support and housing benefit stopped back in February after receiving a £25,000 inheritance. Having less than 16, 000 left, I recently reapplied for HB. I've been told my "capital has decreased significantly" and I'm expected to provide the council with "appropriate evidence" of my spending. Well I'm worried sick as, although I've kept nearly all the receipts for my online shopping [which I've spent the vast bulk of my money on] I haven't bothered keeping receipts for my weekly grocery shopping for which I nearly always use cash. I'm seriously worried about this. Help!

skintandscared_2

You need to prove that you've bought essential items and not just frittered the money away so you can get below the claiming threshhold again. You've managed to spend nearly £10k in less than 7 months, which is pretty good going. I'm afraid the burden of proof is on you to show that this was spent wisely, otherwise they will treat you as still having it and not eligible for HB.

McKneff

What have you actually spent 10K on in 7 months

FBaby

£10K in 7 months is not that bad if it paid fully for accommodation costs, council tax and all day to day expenses.

biffy6

Rent, council tax, living expenses, laptop computer, dvds, books, clothes, decorating expenses, money for my niece, some money for friends. Can't remember offhand.
If they're going to turn down my claim, when do you think I'll be able to claim again. It's really stressing me out.

Caz3121

biffy6 wrote: »

Rent, council tax, living expenses, laptop computer, dvds, books, clothes, decorating expenses, money for my niece, some money for friends. Can't remember offhand.
If they're going to turn down my claim, when do you think I'll be able to claim again. It's really stressing me out.

rent, council tax, bills are all fine and will be allowable, giving money away to niece and friends will not so they will treat it as notional capital.
Take £9,000 and add up the monthly essential expenditure then divide and it will give you an indication...eg if rent, council tax, gas/electric, food etc comes to £700 per month then they would expect it to be Feb/March 2013. You can have other purchases but it will be up to the decision maker to decide if they are reasonable

biffy6

Thanks everyone for your comments and advice.

BigAunty

Giving money to friends and relatives is a big no-no in terms of the rules around deprivation of capital. How much did you give away and why?

The DWP expect former benefit claimants who come into capital to spend it on every day living expenses (this also stretches to things like decorating, repairs/refurbishment, replacement furniture, holidays and cars as long as the claimant hasn't gone crazy by buying a sports car and 10 week cruise).

Google to find the DWP decision makers guides on deprivation of capital which are the staff guidance manuals to help them detect when claimants have been intentionally (note the deliberate nature of the act) depriving themselves of capital. It also explains how they calculate notional capital,how they treat claimants as if they still have the money.

BTW, you've spent approx £1430 per month or £330 per week which is equivalent to a taxable salary of around 20 or 21k.

biffy6

This may sound like I'm naive beyond belief, but I wasn't really aware of "the rules" or I wouldn't have spent so extravagantly.
I suffer from an anxiety disorder and this is causing me great stress. The whole thing's a muddle, so I'll have to contact Citizen's Advice to help me sort things out. I just feel like a fool now!
Thanks for replying anyway.

princessdon

You are not "way over" so don't stress too much

Worst case scenario you just pull in your belt for a while to make up the difference. Don't forget even under £16K you don't get the whole amount of benefits as they would reduce them according to the money so it might be a worst case of using your savings for a another month or two.

A lot of what you have spent it on is perfectly fine, it will be the gifts if anything that they don't accept and will add back to your savings total.

biffy6

Thankyou for that.