Housing benefit

Frogletina

FBaby wrote: »

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

I am assuming that this amount is a lot higher than the OP would have received in benefits during the 7 months to cover the above.

princessdon

Frogletina wrote: »

I am assuming that this amount is a lot higher than the OP would have received in benefits during the 7 months to cover the above.

I guess that ultimately is the starting point.

Benefits of say £1K a month (HB, CT, IS etc). Then they want to know what happend to the other 2K.

If they have benefits of say £800 a month - then the "overspend" is a bit more.

They are allowed to decorate, buy a laptop etc, give friends petrol money etc.

It will be the difference that they look at to see if they have deliberately spent it in order to receive benefits again.

[Deleted User]

FBaby wrote: »

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

Agreed! My household bills/outgoings are around £1000 per Month before I even think about food, clothes or petrol!

OP you should write down all your outgoings, even if you don't have receipts, think about not only what you do spend but what would be reasonable to spend. For example you might only spend £20 per week on food but it would be probably be reasonable to budget £50.

BigAunty

biffy6 wrote: »

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.
...

How much did you gift to friends and relatives?

It is about intentionality - being aware of the rules and acting deliberately to bring down money below the threshold. The decision makers guides will help you understand how the council/DWP try to detect this. They need to be able to show intentionality.

Knowing that your benefits were ceased when you got the inheritance and re-applying when they reached 16k does actually show your knowledge of the basic rules that a claimant doesn't qualify for means tested benefits with savings, that you are aware of the thresholds (even if you aren't aware of specific types of spending that are viewed dimly. But that's just one indicator. Find the guides as this will give you an overview.

BigAunty

princessdon wrote: »

I guess that ultimately is the starting point.

Benefits of say £1K a month (HB, CT, IS etc). Then they want to know what happend to the other 2K.

If they have benefits of say £800 a month - then the "overspend" is a bit more.

They are allowed to decorate, buy a laptop etc, give friends petrol money etc.

It will be the difference that they look at to see if they have deliberately spent it in order to receive benefits again.

I've browsed the decision makers guides, albeit awhile ago, and have never seen the difference between benefits and their new spending patterns as an explicit reason to find someone guilty of deprivation of capital. Seems a bit more nuanced than that. They are looking for deliberate and intentional abuses.

princessdon

BigAunty wrote: »

I've browsed the decision makers guides, albeit awhile ago, and have never seen the difference between benefits and their new spending patterns as an explicit reason to find someone guilty of deprivation of capital. Seems a bit more nuanced than that. They are looking for deliberate and intentional abuses.

I know that but say their benefits were £500 a month and over 7 months they spent £200 more it probably wouldn't flag with them. £20K more and it will.

It's not explicit per se - but I expect there is some kind of "flag" or limit that they use to question.

Eg if OP had claimed in say 3 months time they may not have questioned it.

benefitbaby

biffy6 wrote: »

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.

Long standing legal authorities mean the test for deprivation is whether the monies were disposed of with “...a significant operative purpose…” to obtain, or increase, benefit.

What matters is the reason(s) for your expenditure. If part of your reasoning (it doesn’t have to be the main reason) is significantly purposeful to bring you into benefit entitlement, that would almost certainly be deprivation.

However, if obtaining / increasing benefit was not a significant operative purpose behind the gifts to family etc, benefit should be payable, as there is no deprivation.

belladonna13

I have already wrote regarding my situation...soon to inherit 30k and I am aware of deprivation of capital, but I cannot get my head around how they work out notional capital...not that I intend to have any but reading the OP does unsettle me.

So if for instance you are found to have deprived yourself of say 5k capital, over and above the 6k you are allowed for savings, how much would the DWP take from income support for this and then how much would housing take for HB & CT?

I did read somewhere that if you are still entitled to some income support, despite having notional capital, you are entitled therefore to full HB & CT, is that correct?

It really does hurt my head when I try to understand notional capital the way it is written seems very complex. Can anyone explain in easy terms?

Regarding the OP depending on their circumstances then having to pay all housing costs etc and food etc 1.5k per month seems reasonable if some major household purchases have been made, but I could be wrong because I have yet to go through this. I am having a course of dental treatment at this time that will be continuing when I am funding myself with the inheritance, also need new glasses and my prescriptions will be £60 per month at full cost and I need to know how I can get those cheaper.

I am scared about all this because I am not up to date on benefits and I do not want to make any mistakes that will cause me further upset.

princessdon

You buy a pre payment prescription and you spend sensibly

any "major" purchases - ask them (get in writing in case needed)

Don't give gifts

That would be my advice - though I do wonder how they work it in reality. There doesn't seem to be a 100% guide does there.

BigAunty

princessdon wrote: »

...

any "major" purchases - ask them (get in writing in case needed)

...

I don't believe that benefit organisations will respond to case by case requests from claimants asking for authorisation before spending capital.