JSA Overpayment/savings?

Ames

GazMoz wrote: »

I transferred some of the money from my current account into an ISA. I genuinely had no idea that the money in my current account counted towards my overall savings (which is why I never declared it).

The more I read online the worse it seems. I am now sat here worrying that I'm going to prison.

Your problem is that the form asks for details of all your monney in all your accounts. It makes it clear that you have to tell them of any change in circumstance. There's also an assumption that you'll understand the rules of the benefit you're claiming, the onus is on you to do so.

Saying 'I thought it was in my current account so it didn't count' will sound quite weak to a compliance officer.

Penitent wrote: »

I know, but they said they already had £7000 at the start of the claim, so they were already over the £6000 threshold and receiving a reduced weekly payment and each additional £250 would reduce it further. Reading back, I did word it badly, though. I'll edit to avoid confusion.

I was just adding to your post (I was on my tablet so probably didn't make that clear, I'm on my laptop now).

Although it seems s/he has £1000 more, as they say the current account had £5000 when they transferred the £4000.

GazMoz

Ames wrote: »

Your problem is that the form asks for details of all your monney in all your accounts. It makes it clear that you have to tell them of any change in circumstance. There's also an assumption that you'll understand the rules of the benefit you're claiming, the onus is on you to do so.

Saying 'I thought it was in my current account so it didn't count' will sound quite weak to a compliance officer.

And would it be the compliance officer who would sentence me?

GazMoz

I know I've done wrong (big time) and will repay (immediately).

My two biggest concerns now are:

Avoiding prison
Avoiding a court summons - is this possible if I pay it all back immediately?

Ames

GazMoz wrote: »

And would it be the compliance officer who would sentence me?

It's the compliance team who would decide what further action to take, yes.

Placitasgirl

The problem here is that you keep referring to "savings" and considering only money in accounts you call "savings" accounts.

Income based benefits are affected by "Capital", not savings. Capital is money that you have in any and all accounts in your name and that you hold in cash. So yes, you have declared your capital incorrectly.

I don't believe your argument that you didn't realise that money in your current account should be declared as capital will help you, as the DWP refers to Capital, ie all your money, not just money in savings accounts.

You have been careless in not ensuring you understood the conditions of claiming and Income Based benefit and you will be asked to repay the monies you were not entitled to. These will be calculated by the DWP using your bank statements and passbooks and they may include a fine on top of this figure.

However, prison is very unlikely if you cooperate and are open and honest about all monies you held during your claims. You have the money to make the repayment, so do so promptly, move on and ensure that you understand and are clear about the terms and conditions of claiming any benefit in future.

GazMoz

Placitasgirl wrote: »

The problem here is that you keep referring to "savings" and considering only money in accounts you call "savings" accounts.

Income based benefits are affected by "Capital", not savings. Capital is money that you have in any and all accounts in your name and that you hold in cash. So yes, you have declared your capital incorrectly.

I don't believe your argument that you didn't realise that money in your current account should be declared as capital will help you, as the DWP refers to Capital, ie all your money, not just money in savings accounts.

You have been careless in not ensuring you understood the conditions of claiming and Income Based benefit and you will be asked to repay the monies you were not entitled to. These will be calculated by the DWP using your bank statements and passbooks and they may include a fine on top of this figure.

However, prison is very unlikely if you cooperate and are open and honest about all monies you held during your claims. You have the money to make the repayment, so do so promptly, move on and ensure that you understand and are clear about the terms and conditions of claiming any benefit in future.

I intend to. I have no issue with repaying the money as I now understand it should never have been mine in the first place. I am just frantic with worry at the thought of going to prison, and would also desperately like to avoid a court appearance.

Alice_Holt

GazMoz wrote: »

I I am just frantic with worry at the thought of going to prison, and would also desperately like to avoid a court appearance.

IMO there will likely be a civil penalty of £50, but not prison.
https://www.turn2us.org.uk/Benefit-guides/Benefits-Overpayment/Civil-Penalties-for-benefit-overpayments
You still had an entitlement to an income based benefit as your savings were less than the £16k limit.
At £11.5k of capital you were £5.5k over the £6k threshold for notifying the DWP.
£5.5k / 250 = £22pw overpaid. Over 18 months c. £1700 to repay.

I would agree with marliepanda when she says you won’t go to prison but you have been pretty daft. Cooperate with the compliance officer , express remorse, and repay asap.

GazMoz

Alice_Holt wrote: »

IMO there will likely be a civil penalty of £50, but not prison.
https://www.turn2us.org.uk/Benefit-guides/Benefits-Overpayment/Civil-Penalties-for-benefit-overpayments
You still had an entitlement to an income based benefit as your savings were less than the £16k limit.
At £11.5k of capital you were £5.5k over the £6k threshold for notifying the DWP.
£5.5k / 250 = £22pw overpaid. Over 18 months c. £1700 to repay.

I would agree with marliepanda when she says you won’t go to prison but you have been pretty daft. Cooperate with the compliance officer , express remorse, and repay asap.

So is that a fine of £50? A previous poster said I could be fined up to £700? Or will the £50 be on top o the £700 fine?

Will a civil penalty mean a court appearance? Also, will it show on my record for life?

GazMoz

Alice_Holt wrote: »

IMO there will likely be a civil penalty of £50, but not prison.
https://www.turn2us.org.uk/Benefit-guides/Benefits-Overpayment/Civil-Penalties-for-benefit-overpayments
You still had an entitlement to an income based benefit as your savings were less than the £16k limit.
At £11.5k of capital you were £5.5k over the £6k threshold for notifying the DWP.
£5.5k / 250 = £22pw overpaid. Over 18 months c. £1700 to repay.

I would agree with marliepanda when she says you won’t go to prison but you have been pretty daft. Cooperate with the compliance officer , express remorse, and repay asap.

Sorry to but in again, but are those calculations including the £3.90 that was already being deducted from my JSA for the savings I had declared?

TELLIT01

GazMoz wrote: »

I transferred some of the money from my current account into an ISA. I genuinely had no idea that the money in my current account counted towards my overall savings (which is why I never declared it).

The more I read online the worse it seems. I am now sat here worrying that I'm going to prison.

You're not going to prison, but claim packs / information all makes it very clear that you have to declare all capital / savings. I really don't understand how anybody could think that money in a current account would not be included.