Council not applying diminishing capital rules. What next?

Dee_Castle

I'd just like to say a big thank you to the people who advised me in this thread. 5 letters and two months later the council has recalculated my overpayment and it is indeed less than a third of the original request, phew! Be glad knowing your advice actually gave somebody physical benefits over the last few months and stopped me from completely cracking up.

I wouldn't mind just one more question answering if at all possible and I'll use theoretical figures if that's okay.

Say my savings totalled £17,000 (£1,000 over the maximum amount) but due to diminishing capital rules my notional capital is now £14,000. i.e. minus £3,000 I have been overpaid. My housing benefit was stopped in mid June while they were recalculating my benefit. It is now mid August and they say I have to re-apply and will not receive HB for the two months in between then and now. Is this correct? Althought I have £17,000 in my bank account I owe the council £3,000 so should I be elegible for those two months?

If not I'll pay the £3,000 tomorrow and become elegible again.

Thanks again!

Eager_Elephant

If your savings are over £16,000 you won't be eligible for HB even if you have debts that would bring your capital down.

I suggest you pay the bill and then your capital would be less and you will qualify.

I see this all the time at work, people have undeclared bank accounts with capital over £16,000 and by the time they have paid the overpayment most of the capital has gone and so they qualify again!!!

EE