We’d like to remind Forumites to please avoid political debate on the Forum.

This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.

📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

Overpayment of housing benefit

13

Comments

  • Alice_Holt
    Alice_Holt Posts: 6,094 Forumite
    Ninth Anniversary 1,000 Posts Name Dropper
    edited 25 September 2016 at 5:47AM
    konark wrote: »
    If your mother had been paying full rent , she would have gone under £16k and possibly subsequently under £10k. The council have not taken this into account.

    Speculation - we don't know this. Note that the OP advised his mother not to make full disclosure of all her savings to the council - "After a lot of hassle with the bank we eventually got these [bank statements] and despite my advice she gave everything to the council."

    As she has now declared her financial circumstances to the council (hopefully in full), they have the information to establish if this is the case (or not).

    Under HB Reg 103 & (SPC) 84 councils should calculate an overpayment based on the assumption that if a claimant had declared all their assets, the consequent payment of HB would have caused them to draw on that capital.
    https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/405779/hbopg-caselaw.pdf

    As other posters have correctly suggested, she should ask for a detailed breakdown of the overpayment calculation to establish if the council have used her correct financial details and income over the 3 years in question, have applied the diminution of capital rule, and check that their calculation is correct.
    Alice Holt Forest situated some 4 miles south of Farnham forms the most northerly gateway to the South Downs National Park.
  • bigbill wrote: »
    Did mum get Pension Credit Guarantee following dads death?

    I don't know, how much difference would it make?
  • GwylimT
    GwylimT Posts: 6,530 Forumite
    1,000 Posts Combo Breaker
    Hi Steve

    Who was the money left to according to the will?
  • Alice_Holt wrote: »
    Speculation - we don't know this. Note that the OP advised his mother not to make full disclosure of all her savings to the council - "After a lot of hassle with the bank we eventually got these [bank statements] and despite my advice she gave everything to the council."



    Sorry I did not mean that we intended to withhold necessary data! What I wanted to do was redact out a lot of the personal information the council did not need, such as the recipients of charitable payments (they were very small anyway) and when she gave money to friends and family at birthdays and Christmas.


    What are the rules on gifting capital which would reduce savings below the threshold?
  • GwylimT wrote: »
    Hi Steve

    Who was the money left to according to the will?

    As my father had dementia he never made a will, a lesson for us all!
  • steve811 wrote: »
    Sorry I did not mean that we intended to withhold necessary data! What I wanted to do was redact out a lot of the personal information the council did not need, such as the recipients of charitable payments (they were very small anyway) and when she gave money to friends and family at birthdays and Christmas.


    What are the rules on gifting capital which would reduce savings below the threshold?

    What money she was giving away is definitely "necessary data" - in fact it's absolutely crucial data.
  • GwylimT
    GwylimT Posts: 6,530 Forumite
    1,000 Posts Combo Breaker
    steve811 wrote: »
    As my father had dementia he never made a will, a lesson for us all!

    In this case legally the money belongs to your mum.

    If she had given it away this could be considered that she was depriving herself of an asset to claim benefits. So really instead of having to go without and rely on benefits, she should have used it to pay her rent etc until the amount was much lower, then it would be disregarded when applying for certain benefits.
  • steve811 wrote: »
    What I wanted to do was redact out a lot of the personal information the council did not need, such when she gave money to friends and family at birthdays and Christmas.

    What are the rules on gifting capital which would reduce savings below the threshold?
    Notional capital rules would apply.

    From entitledto "If you deprive yourself of capital in order to increase the amount of benefit you get you can be treated as if you still had that capital (this is called ‘notional capital’). This might occur if you give money away to members of your family or buy expensive items in order to reduce your capital."

    May explain why she was told "she must in future notify [the LA] of any large withdrawal from any of the accounts and the reasons".
    Alice Holt Forest situated some 4 miles south of Farnham forms the most northerly gateway to the South Downs National Park.
  • xylophone
    xylophone Posts: 45,750 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    As my father had dementia he never made a will, a lesson for us all!

    Then Rules of Intestacy would have applied. There was a change to these in 2014 but from the information you have given, this change would have made no difference to your situation.

    http://www.colinsnaith.co.uk/wills/intestacy-flowchart/

    It would appear that your mother was beneficially entitled to the whole of your father's estate that was not specifically held in trust for another person.

    If the policies were not held in trust for you and your siblings, then the proceeds were your mother's - any "understanding" she may have had with your father about the policy proceeds would have no legal standing?

    Therefore your mother had indeed understated her capital?

    The receipt of Guarantee Pension Credit could possibly have made a difference to your mother's situation under certain circumstances, but if your father and mother were in receipt of their state pensions and your father's occupational pensions, it seems unlikely that GPC would have been in payment or is in payment but you can check.

    http://www.ageuk.org.uk/Documents/EN-GB/Factsheets/FS48_Pension_Credit_fcs.pdf?dtrk=true
  • steve811 wrote: »
    I don't know, how much difference would it make?



    If she had an assessed income period set before she got the capital then nothing would change to her pension credit or HB etc.


    If she got full HB as you say this suggests she might have had pension credit paid as well as HB?
This discussion has been closed.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 352.1K Banking & Borrowing
  • 253.6K Reduce Debt & Boost Income
  • 454.2K Spending & Discounts
  • 245.2K Work, Benefits & Business
  • 600.8K Mortgages, Homes & Bills
  • 177.5K Life & Family
  • 259K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16K Discuss & Feedback
  • 37.7K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.