Question on Benefit suspension?

NickDK

Hi All

Got a question for a colleague at work. His mother received a letter in the post saying "we haven't received JSA recipes for this said person since 21/01/2013. Therefore your claim has been suspended, Please provide evidence for gross income including and earnings".

Situation is his mother has been on housing benefits living in a property and her son has been staying there on and off. He has been working as a contractor (he has stayed in other places too). So he has been working for 2 years while his mum hasn't but still claiming.

His mum has been asked to provide his pay slips.

Anyone know what will happens from here? Will it be a fine or pay the whole 8000 back?

rogerblack

Assuming it's housing benefit.
Does the son have any financial interest in the property?
If not - then it will be 'non-dependent' earnings which would reduce the amount of HB paid somewhat.
In general, there may be a penalty for not reporting his earnings for the periods he was staying there, and in addition some of the HB will have been overpaid.
It is unlikely the whole amount would need paid back, if dealt with properly.