income support - overpayment calculation

bagheera

Hello - this is my first post - I am posting on behalf of a good friend and would appreciate any advice pls.

My friend has been on income support since her daughter was born and also receives maintenance payments from her ex-partner. Her income support payments are around £403 per month (£300 of which is the maintenance payment).

She is currently being investigated for Benefit fraud. She has had an interview under caution etc. She has admitted to working 1 day per week between April 2003 and November 2006 - taking home an average of £80 per week. She is shocked that this has been assessed as fraud as her understanding - erroneously - was that she could work up to 16 hours a week without it affecting her benefit.

She has now received an overpayments calculation of almost £14K. As yet she has not been notified of any penalty decision but obviously fears prosecution. I have a number of questions on her behalf and I thank you in advance for any help you can give

1. The overpayment calculation seems to take into account the maintenance payments by the ex-partner. Is this right?

2. If so, and she pays it back (not that she can!) does that money go back to him?

3. What are the chances of a court prosecution? We understand it is a large amount of money but she is doing a fantastic job raising a young child, has no previous convictions, and has admitted to the allegations. She has stopped the work and will offer to repay the money but can only do so at a very low amount per week (eg £5). She cannot afford more - I know because I have done the sums for her!.

4. Is this offer of payment likely to be accepted? If not, what is the worst that can happen?

5. What next steps is she best advised to take?


Many many thanks and apologies for such a lengthy, rambling note, but I have a panic stricken friend and want to do all I can to help.

CIS

You can only get to keep £10 per week of maintainence if paid via the CSA, if she was getting miantainence paid direct to her by her partner that was not previoulsy declared then they will have overpaid by the weekly amount of maintainence she received less £10.

On income support you can work up to 16hrs per week and still claim it but any income needs to be declared and the benefit will usualy be reduced accordingly.

bagheera

Hi - thanks for the reply - all maintenance was via CSA / DWP - none was paid directly. if she has to pay the full £14Kback - then surely the DWP / CSA are getting to keep HIS money? It doesnt seem right somehow?

shellsuit

bagheera wrote: »

Hello - this is my first post - I am posting on behalf of a good friend and would appreciate any advice pls.

My friend has been on income support since her daughter was born and also receives maintenance payments from her ex-partner. Her income support payments are around £403 per month (£300 of which is the maintenance payment).

She is currently being investigated for Benefit fraud. She has had an interview under caution etc. She has admitted to working 1 day per week between April 2003 and November 2006 - taking home an average of £80 per week. She is shocked that this has been assessed as fraud as her understanding - erroneously - was that she could work up to 16 hours a week without it affecting her benefit.

She has now received an overpayments calculation of almost £14K. As yet she has not been notified of any penalty decision but obviously fears prosecution. I have a number of questions on her behalf and I thank you in advance for any help you can give

1. The overpayment calculation seems to take into account the maintenance payments by the ex-partner. Is this right?

2. If so, and she pays it back (not that she can!) does that money go back to him?

3. What are the chances of a court prosecution? We understand it is a large amount of money but she is doing a fantastic job raising a young child, has no previous convictions, and has admitted to the allegations. She has stopped the work and will offer to repay the money but can only do so at a very low amount per week (eg £5). She cannot afford more - I know because I have done the sums for her!.

4. Is this offer of payment likely to be accepted? If not, what is the worst that can happen?

5. What next steps is she best advised to take?


Many many thanks and apologies for such a lengthy, rambling note, but I have a panic stricken friend and want to do all I can to help.

I don't understand the Income Support/Maintenance sorry

I was on Income Support up until last month.

I got the basic £57 for myself, which I think all people (with children) get now.

If I was being paid £75 a week maintenance, I wouldn't get any Income Support at all, let alone £25 a week (going by the extra £100 a month income support in the first post). Did she actually declare the maintenance payments to Income Support??

Also, your friend must have had a good little job ~ £80 for one day?! I work 16 hours a week and get £85.60 a week (minimum wage)

Not declaring ANY work or extra income while claiming benefits is fraud, surely your friend must have known this?

I don't know what will happen to her, but I wouldn't like to be in her shoes

shellsuit

bagheera wrote: »

Hi - thanks for the reply - all maintenance was via CSA / DWP - none was paid directly. if she has to pay the full £14Kback - then surely the DWP / CSA are getting to keep HIS money? It doesnt seem right somehow?

Yes they would get to keep that money ~ they were funding his children....he has to pay towards that.

Morglin

I would advise your friend to get some advice from either the CAB or CLS.

http://www.citizensadvice.org.uk/index/getadvice.htm

http://www.clsdirect.org.uk/index.jsp

Lin

Scarlett1

bagheera if you friends maintenance went through the CSA/DWP then any IS she got would probably have only been a little top up, but at £300 per month that is more than the IS amount so she would havnt been entitled to any IS, unless she was claiming IS amount for her child aswell (rather than CTC) then she would have probably had an IS top up.

Under IS rules you can work 16 hours per week, but any monies over £20 will be taken off her IS, so your friend was keeping £60 per week extra she wasnt entitled to keep as that would have cancelled out IS completely, resulting in no housing benefit or council tax benefit either.

Definately get your friend to the CAB or welfare rights so they can sit down with her and go through everything

cattie

The repayment of £5 per week would be more than acceptable to DWP debt management. There is a limit as to how much DWP can take from benefit payments when there is an overpayment due & I belive the maximum is around 25% of weekly benefit being paid.

She should contact Debt management asap to discuss the amount she wishes to be deducted from her benefits towards the debt & hopefully that should satisfy them that no further action needs to be taken. DWP do not always impose penalty fees & as a single parent it's extremely unlikely that prosection will take place in this case. She has agreed to the allegations, so has not tried to lie her way out of things & this will be in her favor.

Do urge her to get on the phone & agree to the deduction being made from her benefit as soon as she can.

bagheera

Many thanks Cattie and Scarlett1. What in your opinion are the chances of DWP informing Housing Benefit? Or should my friend do this herself? (although I think I know the answer to this one!)

zoezoe_3

14k is about right for 3.5 years worth of £80 a week. How on earth can she have not realised that she was breaking the law ? All the forms would have asked her to complete her earnings ?

She would have been better off coming off IS, keeping her £300 a maintanance and claiming tax credits etc. However TC cannot be backdated.

Zoe

zoezoe_3

shellsuit wrote: »

Yes they would get to keep that money ~ they were funding his children....he has to pay towards that.

well no. IS *were* funding her to the tune of £400 a month, £300 of which was paid by her ex.

over 3.5 years IS paid £100 per month, Ex paid £300 (via csa/is), if they ask for 14k back, this is roughly £350 a month over the 3.5 years. Thus the IS are making a HUGE profit.

Any maintanance paid should reduce the amount of benefits payable but since the amount of benefits she should have received were only £20 a week or so then the should get to keep the extra maintanance...