Paying MIL rent top up, can we put into her back account?

fc123

We are helping MIL with her separation from her husband and her LHA is less than the rent on the property we have rented as we have agreed to pay the extra for her.

We are concerned that if we pay the top up into her bank account it will be seen as 'income' when she applies for pension credit. Is this the case?
We do need to pay it into her account each month just before it is due.

princessdon

Id pay cash if possible to avoid any issues, is this a possibility

fc123

I guess so then she could leave her pension in it but she's not great at budgeting etc (her ex husbands have always done it).
Could I transfer it and call it a 'Loan'?

princessdon

To be honest I haven't had issues paying for a young lad I know, I set up a DD called rent top up, he's had no issues with the job centre. It was just cash could have been easier (I'd not pay him cash either due to budgeting skills and lack of). It should be OK, but you could find someone who classes it as income (which it is).

pmlindyloo

There is a possibility that it will be seen as income. All bank accounts etc are scrutinised when you are claiming means tested benefits.

To avoid any confusion I wonder if it would be possible to set up a DD direct to the landlord for the top up amount. Might be worth asking.

fc123

princessdon wrote: »

To be honest I haven't had issues paying for a young lad I know, I set up a DD called rent top up, he's had no issues with the job centre. It was just cash could have been easier (I'd not pay him cash either due to budgeting skills and lack of). It should be OK, but you could find someone who classes it as income (which it is).

I know......it's hard to explain but we were going through her budgets today and she does doesn't 'get' the difference between leaving her pension in the account to cover monthly costs instead and being given a cash amount...she kind of sees that as an extra amount.:o

We are trying to keep everything as simple as possible but she will just draw out her pension each week and spend it as that is what she has always done. I know this is MSE and some may judge this but it's how it is.:o

I have paid up for TV license, put her phone on my account etc to reduce monthly bill issues, paid her talk talk in advance.

I am thinking of putting our account details on her bills to pay the gas/elec DD's as well.

Okydoky25

Could you pay one of her other bills of a similar amount instead freeing up cash in her bank to cover it herself?

fc123

pmlindyloo wrote: »

There is a possibility that it will be seen as income. All bank accounts etc are scrutinised when you are claiming means tested benefits.

To avoid any confusion I wonder if it would be possible to set up a DD direct to the landlord for the top up amount. Might be worth asking.

That may be a good idea actually......we'll talk about it tonight.

It's all highly emotional at the moment so I am doing the practicalities so she doesn't have to 'think' about anything else.

fc123

Okydoky25 wrote: »

Could you pay one of her other bills of a similar amount instead freeing up cash in her bank to cover it herself?

It just about works out that the pension credit will cover the extra I think.

I will pay the bills out of my account as well.

She won't have LHA once we can get her a divorce settlement but that could take a couple of years as this second ex is very difficult and not happy to give her her beneficial interest in the house.(...maybe 30k - 40k)
Thanks for the helpful replies

rogerblack

pmlindyloo wrote: »

There is a possibility that it will be seen as income. All bank accounts etc are scrutinised when you are claiming means tested benefits.

To agree with this - and expand on the earlier 'pay cash' - paying cash to avoid scrutiny of bank accounts may in some cases amount to benefit fraud, and may lead to prosecution.
Paying someones gas/electricity/insurance/rent direct to the provider is just fine.

zzzLazyDaisy

regular payments from friends and family are known as 'charitable/voluntary payments' and are disregarded completely for means tested benefits.

http://www.entitledto.co.uk/help/benefitscharity.aspx

Having said that, my preference, if I was going to help someone, would either be to give cash or food or pay a bill directly, because despite the above, any regular payment going into their bank acc is going to be scrutinised and can lead to delays and stress while the 'misunderstanding' is sorted out. It just isn't worth it, in my view. But at least you know that you are not committing or assisting her to commit fraud! :A