Housing benefit & increase in savings

royP_2

I have a friend, who is worrying herself sick over a sudden increase in her savings a few years ago, which took her over the £16k limit.
Unfortunately she did not tell the benefits agency at the time and now her conscience is making her life a misery. She is in her 70's.
She fears that if she is found out she will go to prison and owe a huge amount of money.
Any advice as to the easiest way out of this, my own advice is just own up, but she is so scared to do that?

What if she just rings up the Benefits Agency and telsl them that she has come into some extra savings, would they ask from what date or would they accept from the date she lets them know [not my question but hers], I think I know the answer but not sure, does anyone know?
Thanks for any help.

marliepanda

1. She needs to tell them ASAP, as the cut off is I think 12k (for a pensioner, 6k for others so depending on her savings before this windfall it could go way back), after which HB is reduced on a sliding scale and then totally ends at 16k, so the overpayment will be bigger than she thought...

2. No of course they won't take her word for when she got it. She will be asked for proof and her lie will be exposed. She needs to start telling the truth ASAP. Hiding her head in the sand will make it worse.

3. They will find out themselves eventually, so theres no point continuing to hide it.

nannytone_2

they would ask the date that her savings went above the threshold.

it is better to be honest and pay back the amount owed rather than have to live in fear of them finding out.

because they WILL find out. maybe not today, but at any point.

royP_2

Thanks both, just as I thought.
Would they take her to court or would it be, come clean and repay?

marliepanda

royP wrote: »

Thanks both, just as I thought.
Would they take her to court or would it be, come clean and repay?

It really depends on the amount of overpayment, how they take into account her age etc. Its unlikely, but possible as she has clearly hidden this rather than being unaware.

pmlindyloo

Is your friend receiving Guarantee Pension Credit?

royP_2

pmlindyloo wrote: »

Is your friend receiving Guarantee Pension Credit?

Not that I am aware.

Sarastro

Best to own up. Unlikely they would take her to court to reclaim money she's offering to pay back.

Housing_Benefit_Officer

Data matching will pick it up; so sooner than later informing everyone.

PasturesNew

Also, check Council Tax. That doesn't get paid if you've a bob or two either.

tboo

It's £10,000 for pensioners and upper limit £16,000 unless on Guaranteed Pension Credit