DWP requested bank statements- too much in savings? Vulnerable adult?

Hazzoura22

Hi, I’m hoping for some advice for my uncle. He is 71, has had schizophrenia all his life, used to live with his parents till they passed away 15 years ago and now lives alone. My mum (his sister) and my dad visit him weekly to check on him, take him some food and do a little clean for him.

He receives DLA (lowest rate) and pension credit and has rent paid on a small run down flat.

He is usually very private about his finances but last time they visited he was very anxious and told them he received a letter from the DWP to ask for bank statements to prove his amount in savings. They asked to see the letter but he said he had thrown it away. When they asked him how much he has, it turns out he has nearly £25,000.

Obviously this is way more than he is allowed and we would like to know what is likely to happen now, and what is the best thing to do next?

The money has not come from any outside source, purely from his entitled benefits mounting up over the years resulting from him living very basically and neglecting himself and his home due to his mental illness and medication.

For example; he doesn’t eat well, only one decent meal a day and my parents take him fruit and veg and meals when they can. He was going out in winter in a thin summer coat so they bought him a warm winter one. His couches and bed are over 20 years old and falling apart and he refuses to buy a new ones saying they’re fine!

So basically he only has this much in savings because he hasn’t had the mental capacity to use his entitlement to care for himself properly all these years. My parents often care for his basic needs out of their own pockets and he doesn’t smoke, drink or buy any new clothes or possessions for himself.

We are wondering whether to try to convince him to spend a chunk of the money on things he does actually need and keep receipts before sending the bank statements in, or if this is likely to get him into more trouble with the DWP?

He talks about being anxious about funeral costs so we could help him get a prepaid funeral plan. He also needs a new mattress, bedding, 3 piece suite, TV, white goods for the kitchen, new clothes and shoes etc all of which he has neglected to buy for himself for 15 years.

Thank you very much for your advice!

poppy12345

Hazzoura22 wrote: »

Hi, I’m hoping for some advice for my uncle. He is 71, has had schizophrenia all his life, used to live with his parents till they passed away 15 years ago and now lives alone. My mum (his sister) and my dad visit him weekly to check on him, take him some food and do a little clean for him.

He receives DLA (lowest rate) and pension credit and has rent paid on a small run down flat.

He is usually very private about his finances but last time they visited he was very anxious and told them he received a letter from the DWP to ask for bank statements to prove his amount in savings. They asked to see the letter but he said he had thrown it away. When they asked him how much he has, it turns out he has nearly £25,000.

Obviously this is way more than he is allowed and we would like to know what is likely to happen now, and what is the best thing to do next?

The money has not come from any outside source, purely from his entitled benefits mounting up over the years resulting from him living very basically and neglecting himself and his home due to his mental illness and medication.

For example; he doesn’t eat well, only one decent meal a day and my parents take him fruit and veg and meals when they can. He was going out in winter in a thin summer coat so they bought him a warm winter one. His couches and bed are over 20 years old and falling apart and he refuses to buy a new ones saying they’re fine!

So basically he only has this much in savings because he hasn’t had the mental capacity to use his entitlement to care for himself properly all these years. My parents often care for his basic needs out of their own pockets and he doesn’t smoke, drink or buy any new clothes or possessions for himself.

We are wondering whether to try to convince him to spend a chunk of the money on things he does actually need and keep receipts before sending the bank statements in, or if this is likely to get him into more trouble with the DWP?

He talks about being anxious about funeral costs so we could help him get a prepaid funeral plan. He also needs a new mattress, bedding, 3 piece suite, TV, white goods for the kitchen, new clothes and shoes etc all of which he has neglected to buy for himself for 15 years.

Thank you very much for your advice!

He'll need to tell the truth and come clean to exactly how much savings he has. I would advice he does this sooner rather than later. He'll have an overpayment, for sure and he'll have to pay it all back. Bank statements will tell them when he reached the maximum amount. He'll also need to tell his local council because he caims housing benefit and there'll be an overpayment on the also.

Does he have an appointee? As you say he doesn't have the mental capacity?

I woud advice him not to spend any of the money yet, until he knows how much the overpayment is.

PasturesNew

He'll have also potentially become liable/part-liable for his council tax bill.

tboo

Hazzoura22 wrote: »

Hi, I’m hoping for some advice for my uncle. He is 71, has had schizophrenia all his life, used to live with his parents till they passed away 15 years ago and now lives alone. My mum (his sister) and my dad visit him weekly to check on him, take him some food and do a little clean for him.

He receives DLA (lowest rate) and pension credit and has rent paid on a small run down flat.

He is usually very private about his finances but last time they visited he was very anxious and told them he received a letter from the DWP to ask for bank statements to prove his amount in savings. They asked to see the letter but he said he had thrown it away. When they asked him how much he has, it turns out he has nearly £25,000.

Obviously this is way more than he is allowed and we would like to know what is likely to happen now, and what is the best thing to do next?

The money has not come from any outside source, purely from his entitled benefits mounting up over the years resulting from him living very basically and neglecting himself and his home due to his mental illness and medication.

For example; he doesn’t eat well, only one decent meal a day and my parents take him fruit and veg and meals when they can. He was going out in winter in a thin summer coat so they bought him a warm winter one. His couches and bed are over 20 years old and falling apart and he refuses to buy a new ones saying they’re fine!

So basically he only has this much in savings because he hasn’t had the mental capacity to use his entitlement to care for himself properly all these years. My parents often care for his basic needs out of their own pockets and he doesn’t smoke, drink or buy any new clothes or possessions for himself.

We are wondering whether to try to convince him to spend a chunk of the money on things he does actually need and keep receipts before sending the bank statements in, or if this is likely to get him into more trouble with the DWP?

He talks about being anxious about funeral costs so we could help him get a prepaid funeral plan. He also needs a new mattress, bedding, 3 piece suite, TV, white goods for the kitchen, new clothes and shoes etc all of which he has neglected to buy for himself for 15 years.

Thank you very much for your advice!

Which type if pension credit is it?

If guaranteed then the £25,000 doesn't matter. unless the tarriff put him over.

It could be the normal pension credit so as posted do not to dispose of the money yet until they have reached a decision.

Housing benefit will be the same,an op will occur as well but they will use the date of the DWP.

When sorted as you have said purchase a pre paid funeral plan but do not go overboard. This is an acceptable expense to use savings on.

Topcat1982

Wait, don't get him to blow the savings there may be a large over-payment. You need to wait and see the outcome of the investigation. It's likely they won't treat it as fraud because of the schizophrenia.

pmlindyloo

it is possible that your uncle has an assessed Income Period during which time an increase of savings does not have to be notified. This AIP should be noted on his Pension Credit award letter.
If he does not have an AIP then any amount over £10000 reduces his PC by £1 for every £500 above the £10000.

It is possible that he would still be eligible for PC even with this amount of savings.

I suggest that you contact AgeUK who will do a home visit and speak to the DWP on his behalf and find out exactly how to move forward as this could get complicated as the savings would have risen over the years. They can also ask about the AIP.

Plus, from what you say your uncle may benefit from discussion about his DLA as he may well be entitled to move to a higher rate (based on what you have said). AgeUK can also advise on this.