ESA Customer compliance interview - strange reason?

chickendipperbabe

Just had a phone call from my brother, he has to attend a customer compliance officer interview regarding his savings from years ago.

Background

After an injury at work 9 years ago he was on DLA and Incapacity benefit until he was moved over to ESA around a year ago? He's been honest, declared what little savings he now has but out of the blue he's been requested to attend a compliance interview.

He managed to get in touch with the person who will be conducting the interview and was told it was to do with an amount of savings he had years ago. He was in full time employment for over 30 years prior to his accident and had savings of around £14,000 at the time he left work - this is the amount they're interested in. He has to provide bank statements that go all the way back and I would imagine explain where it went. He says his savings have been under the £4000 mark for well over 5 years now and he cant understand why the amount of savings he had in 2005/6 is relevant now, and I must admit I'm curious myself. Apparently all bank accounts and amounts have been declared at every stage they were requested over the years so why would they be interested now?

The person on the phone was vague but from what I've read online he was lucky to be told anything over the phone. They said he may receive a small fine and possibly pay money back but we cant figure out what he's done wrong.

Mrs_Arcanum

I suspect they want to make sure he did not deliberately spend his savings in order to qualify for benefits 9 years ago.

If he used them to live on or buy required equipment directly related to his disability he should find some proof of this.

rogerblack

DLA and IB do not care about savings. The question might not even have been asked.
Once one year has passed on ESA - he will move from ESA-contributory to ESA-income-related, and then the past spending in principle becomes relevant.
However.
The major point is that spending needs to have been done in the expectation of getting more benefit in order to be deprivation of capital.
Even if they had claimed DLA and IB, and set fire to all of the money - they would have had no way of knowing that in 9 years, legislation would change and it may become relevant.

chickendipperbabe

Just very surprising they would want to go back that far. As far as I know, he has used his savings to basically live off during times where he's been short or needed it for an emergency. luckily for him he has all his statements going back 20 years, not that it proves much other than he has the money and its slowly been spent over the years.

the only thing we can come up with is for a short time, 6 years ago he was put on income support during the time he had the bulk of his savings intact, it would have been for less than a year and he was then moved back over to incapacity (we don't know why this happened) from what I gather IS is means tested so his savings would have some impact as they were over £6000. Possibly going after him for an overpayment of some sort.

Indie_Kid

IS is means tested, yes. IB isn't.