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Benefits and inheritance

Hi I wonder if some one can help me I'm asking for my friend . Last year her mum sadly passed away and she inherited 15k she was on benefits child tax credits hb cb she didn't tell the job centre as she was told she was aloud this amount but few months after the money had gone the job centre and income support stopped her money while they investigated her having that money and not telling them she had it they stopped her money for almost 3 months with 3 children to feed and being single mum she was struggling Badley when they got her into the office they told her she would have to pay them back 5k so there taking that out each week but I am dam sure they can't do this as I thought she was legally aloud the money from the sale of her mothers house please can someone advice as I feel there ripping her off xx thank you
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Comments

  • nannytone_2
    nannytone_2 Posts: 13,011 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    edited 14 January 2015 at 7:53PM
    any savings over £6,000 reduce her income related benefit ( income support, housing benefit and council tax support) savings of £16,000 and above stop entitlement to these benefits completely.
    so yes, she should have told them and they are right to ask her to repay the overpayment
  • They damn sure can do this.

    She got caught and she is paying the consequences.

    She ripped off the taxpayer by fraudulently claiming benefits while failing to declare the inheritance.

    She is lucky she isn't being prosecuted.

    They are correct in cutting her money by recovering the overpayment.

    She had £15k and sounds as if she blew the lot.

    No sympathy.

    Read the savings section:-

    https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/385318/changes-you-must-tell-jobcentre-plus-about-if-you-are-getting-income-support.pdf
    These are my own views and you should seek advice from your local Benefits Department or CAB.
  • von
    von Posts: 541 Forumite
    Part of the Furniture 100 Posts Combo Breaker
    nannytone wrote: »
    any savings over £4,000 reduce her income related benefit ( income support, housing benefit and council tax support) savings of £13,000 and above stop entitlement to these benefits completely.
    so yes, she should have told them and they are right to ask her to repay the overpayment

    Not strictly correct, any savings over £6,000.00 affect the Income Support entitlement, in that £1.00 per week is deducted from the entitlement for every £250.00 held over £6,000.00.
    There is no entitlement to Income Support if the capital exceeds £16,000.00.
  • savings of 6k and anything over 16k stops the entitlement. She can ask for a review of the overpayment.
  • tomtontom
    tomtontom Posts: 7,929 Forumite
    Is your friend not able to work? That would have been a solution to having no money for three months.
  • NYM
    NYM Posts: 4,066 Forumite
    Tenth Anniversary 1,000 Posts Photogenic Combo Breaker
    Gillybabz wrote: »
    Hi I wonder if some one can help me I'm asking for my friend . Last year her mum sadly passed away and she inherited 15k she was on benefits child tax credits hb cb she didn't tell the job centre as she was told she was aloud this amount but few months after the money had gone the job centre and income support stopped her money while they investigated her having that money and not telling them she had it they stopped her money for almost 3 months with 3 children to feed and being single mum she was struggling Badley when they got her into the office they told her she would have to pay them back 5k so there taking that out each week but I am dam sure they can't do this as I thought she was legally aloud the money from the sale of her mothers house please can someone advice as I feel there ripping her off xx thank you


    She shouldn't have listened to someone that clearly hasn't got a clue. :)

    But of course she's allowed the money !! She's just not allowed to forget to report the changes to her claim for benefits. :)

    I agree with HBO, I think she's lucky that she wasn't prosecuted for 'ripping off the state'
  • rogerblack
    rogerblack Posts: 9,446 Forumite
    Gillybabz wrote: »
    she didn't tell the job centre as she was told she was aloud this amount
    Who told her this - in what circumstances?
  • rogerblack wrote: »
    Who told her this - in what circumstances?

    That was what I wondered. If she can prove she was told this by someone in an official capacity and followed the advice in good faith, that might assist her. She could also consider complaining, because if it was eg someone at a CAB, they need stopping before others suffer because of their poor advice.

    Also, what did she do with the money? I'm guessing it has gone now as she's having the overpayment deducted in installments rather than giving it back in one lump sum.
  • Wow I know Im being nosy here but spending £15k in a few months, why do people think money is only for spending. Off course, I understand it could off been spent legit, but still curious.
  • lovinituk
    lovinituk Posts: 5,711 Forumite
    1,000 Posts Combo Breaker
    Good to see the authorities cracking down more on the people defrauding the benefit system. Long may it continue.
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