Notional income - how long?

honeysnow24

I sold my house and now have less than £3000 in the bank. I put in a claim for housing benefit and council tax and they say I cannot account for £12,000, as I don't have receipts for that amount (mostly because I used cash). They are counting the £12,000 as notional income.
How long will they think I have £12,000 for?
I have showed my bank statements showing I have less than £3000 but they are treating me as if I have another £12000.
I am very worried about this as my rent is high and council tax too.
they say I need to have less than £6000 to claim council tax so the notional income would stop me claiming that.

HappyMJ

So...where did the money go? £12,000 should have lasted at least 6 months spending at a rate of £2,000 a month.

If you used it on rent you'll have a receipt for that.

The notional income depends on how many people you are claiming for.

TELLIT01

You really need to ask the local council how much the notional figure will be reduced by each week / month. They will have done the calculations.
The underlying problem is over what time period you spent the 'missing' £12k. I'm guessing it was a short period and that is why receipts were required. If you are receiving benefits, and come into money, you can't just blow that cash on anything you want and then go back onto benefits as if it has never existed.

bloolagoon

In April you had £115k profit so I think they may consider the notional for a while

NYM

According to one of your earlier posts (April) you wrote that you made £115,000 profit when you sold your house June/July last year.

I doubt it's the lack of receipts for £12,000 that is causing the refusal of HB.

This thread ...Housing Benefits Deprivation

Housing_Benefit_Officer

We would reduce the assumed capital by the amount of rent and council tax they would pay.

For example assumed £115,000 capital. Rent £900 per month and council tax £100 per month.

Claims benefit in August so August capital is £115,000
September capital is £114,000
October capital is £113,000

and so on and so on.

If you had £115,000 then it would take about 8 years before you got any Housing Benefit and your assumed capital got below £16,000.

HappyMJ

Housing_Benefit_Officer wrote: »

We would reduce the assumed capital by the amount of rent and council tax they would pay.

For example assumed £115,000 capital. Rent £900 per month and council tax £100 per month.

Claims benefit in August so August capital is £115,000
September capital is £114,000
October capital is £113,000

and so on and so on.

If you had £115,000 then it would take about 8 years before you got any Housing Benefit and your assumed capital got below £16,000.

They've accounted for all but £12,000.

Living costs are also taken into account. Income based JSA would not be payable to a claimant with more than £16,000 and that amount can also be deducted from the notional capital each month.

NYM

HappyMJ wrote: »

They've accounted for all but £12,000.

Living costs are also taken into account. Income based JSA would not be payable to a claimant with more than £16,000 and that amount can also be deducted from the notional capital each month.

Are you sure ?
None of the OP posts have made mention of that.

HappyMJ

NYM wrote: »

Are you sure ?
None of the OP posts have made mention of that.

The first one...

I sold my house and now have less than £3000 in the bank. I put in a claim for housing benefit and council tax and they say I cannot account for £12,000, as I don't have receipts for that amount (mostly because I used cash).

<SNIP>

Housing_Benefit_Officer

Someone can account for expenditure but it can be classed as deliberate deprivation if they have blown so much in such a short period of time without making any financial provision to support themselves and expecting the taxpayer to step in because of their spendthrift ways.

Housing_Benefit_Officer

HappyMJ wrote: »

They've accounted for all but £12,000.

Living costs are also taken into account. Income based JSA would not be payable to a claimant with more than £16,000 and that amount can also be deducted from the notional capital each month.

Indeed forgot that bit