Housing benefit (please advise!)

marsbar1945

Hello, I have a question on behalf of a friend of mine who has no net access.

Her circumstances -

Quit her last job and went on a world trip (returned 3 months ago)
Has some savings from last job.
Unemployed, lives in rented accommodation.
Has been burning her saving to pay food/rent but will run out at some point soon.
Has another account in another high street bank that is in her name she used to hold some money from an inheritance for her sibling for a short while - I believe the money has now been transferred out and given to the sibling (but assume there is a chance it has not been).

Her questions -

(1) On the housing benefit form it asks for all her bank account details, is the fact that she did have some money going to be a problem because it was in her name?

(2) Should she close the other account before applying?

(3) Should she even bother to mention it on the form as she does not use it any more?

I'm pretty sure that's it, I'll speak to her on the phone and check - if I got any details wrong I'll post a follow up. If you could advise that would be marvellous - I know very little about this subject.

My thanks in advance.

BigAunty

If she has live bank accounts, then if the form asks them to list them, she should list them all. I am not familiar with HB forms but i doubt that it says 'list the ones that you regularly use, not just the dormant ones...'. Also, the form will warn her, in common with all benefit forms, that she risks prosecution if she provides false details.

She runs the risk that the local council will query the lump sum that has gone in (and may or may not be still there!) but she should be able to answer any prospective queries with a paperwork trail about the inheritance.

Any particular reason why she handled this lump sum and it didn't go to her sister directly?

marsbar1945

>> Any particular reason why she handled this lump sum and it didn't go to her sister directly?

Excellent question and the first thing I asked. Apparently the sibling does not like banks, I would imagine its more complicated than that.

>> she should be able to answer any prospective queries with a paperwork trail about the inheritance.

An excellent point indeed, many thanks. I will pass that on, there must be a paperwork trail that would solve all problems, I think it is the worry about the lump sum which has caused the stress - but as you point out if its not hers and there is a paper trail then there should be no worry.

>> Also, the form will warn her, in common with all benefit forms, that she risks prosecution if she provides false details.

Already pointed that out.

I am intrigued though how it all works though - I assumed the HB form gives the right to access the account? Well I googled it and it doesn't seem that simple. HB seem to have no access normally (the form is just for information) - but if they suspect something iffy then obviously they can open a fraud case and get all the access they require. Not having claimed HB or seen a form I can only guess - but I imagine they would want a bank statement?

As happens there is already a thread about it on this forum (thread id 2174629 - I cannot link it). Interesting reading.

BigAunty

marsbar1945 wrote: »

...

Excellent question and the first thing I asked. Apparently the sibling does not like banks, I would imagine its more complicated than that.

The reason I asked is that we sometimes get threads here regarding benefit claims and lump sums.

Sometimes, for example, the person asking them to store their money are doing it to conceal their savings from the benefit authorities. In other words, intentional fraud. I take it the sister isn't on benefits or if she is, she's declared this lump sum?

On other occasions, the person receiving benefits actually directly received the inheritance under the terms of the will and are either aware that gifting it to others is not permitted under the benefit rules or are deliberately depriving themselves of capital in order to claim. Even if there was a verbal arrangement to pass some of the inheritance on, the fact that they are the direct recipient according to the will means the lump sum is considered from a benefits calculation perspective.

That's why I was intrigued about the arrangement. If there's a good paperwork trail that proves the money isn't hers, any queries can be easily resolved. If there are only verbal arrangements, this makes things harder.It's not necessarily going to be an issue.

Gentile

I am completely gobsmacked that someone went around the world splashing out all their cash and is now trying to get State help ? Wow ! I am sure some people are just like that but to go and spend the savings on a world tour with no Plan B after the tour is finished is , how shall I put it, irresponsible.

marsbar1945

AKAIK she had plans set for her return - but they fell through.

She's really not the sort to scrounge.

elmer

HB staff do not have access to bank accounts unless they are investigating you for fraud, however all bank accounts are data matched by HMRC to our records on a regular basis and this gives a list of claimants to speak to about "discrepancies".

elmer