Request for bank statements

Unsureoftheanswer

Synopsis: What happens when you send in proof of capital that isn't the most recent?

A relative had their Housing Benefit and Council Tax Support suspended. The local borough Benefits Service sent a letter requesting proof of income comprising wages, childcare, income and Proof of capital. For Proof of capital they request "the latest two monthly statements"

The issue is that their mum mistakenly transferred a matured bond of large value (£60k) into their account in December. They have transferred the money back but it will only go through in end of January. Their mum is happy to write a letter explaining that the transfer was an error. However they are anxious this might open up a can of worms. (Particularly as I believe the bond had been in the wrong person's name for a number of years. Again, could be explained away quite truthfully by a letter from the mum, but they'd prefer to avoid the hassle if possible.)

Rather than send in the two latest statements, could they get away with sending in the two (or three) months prior to the transfer? i.e. (Sept) Oct, Nov?

What's the worst that could happen?

Thanks for any tips.

Alice_Holt

It is likely that their HB will remain suspended whilst all the requested info is outstanding.
A suspension is for a limited period of time, after which their claim will be closed.

Are they in receipt of any other means-tested benefits?

Why has it taken more than a month to transfer the "matured bond" back out of their bank account?
Did the council request information during this period?
Can you give more info on the "name" mix up. Who was the beneficiary of the bond?
What's "the can of worms" it will open up?

Unsureoftheanswer

I don't know nearly enough about it. All I know is

- The council only requested the info a few days ago
- The account holder didnt have a cheque book, requested one late, and only wrote the cheque a few weeks after the original deposit, hence the delay in returning the money.
- The bond was a 5 year bond in the name of the son. The original deposit had come from the mum from her savings. She is no use with finances - I have no idea why it was put in the son's name nor why it took so long to discover this - all I know is it is definitely her money and he has not used any of it up and she wants it all back. When I say can of worms I refer to trying to successfully prove that the money was his mum's despite having been in his name for so long.
- The son is on the autistic spectrum, and has no idea of his bankings - relies on her. A fine mess.

TELLIT01

The mother is going to have to provide a detailed explanation of everything to do with that money. It will not be acceptable to provide bank statements for previous months as it is entirely possible that the reason for suspending payment is that money arriving in the account.
In referring to 'the son' I'm assuming this is the person in receipt of HB and whose payments have been suspended. Trying to explain away the reason the bond has been in his name 'for years' may not be easy. A bond in his name for 5 years is likely to be considered to be his money, unless there is solid evidence that this is not the case.
In any event, any attempt to disguise the fact that the money has been in his account is likely to be looked on badly. Don't do it at that could open up a far bigger can of worms!

Unsureoftheanswer

TELLIT01, I understand all you say. My question is, does sending in recent statements (but not the most recent month) fall under the category of "disguising the facts"? Would it be viewed suspiciously by the benefits office?

Alice_Holt

Unsureoftheanswer wrote: »

TELLIT01, I understand all you say. My question is, does sending in recent statements (but not the most recent month) fall under the category of "disguising the facts"? Would it be viewed suspiciously by the benefits office?

Yes.

It is likely that their HB will remain suspended whilst all the requested info is outstanding.
A suspension is for a limited period of time, after which their claim will be closed.

If this bond has been in their name for 5 years, they may have an overpayment of HB / CTs / and any other means-tested benefits during that period.

BoGoF

Bearing in mind the Benefits people may already know about the increase in capital it would be foolish to try and hide the fact.

Alter_ego

Is the "wrong person" who held the bond the benefit claimant? If so things don't look very good.

Unsureoftheanswer

2 points to clarify:

1.the benefits claimant is the son's wife - not the son himself

2. benefits have been claimed for approx 2 years (i.e during the bond term), the fixed rate bond was opened several years beforehand, without the knowledge of the son.

The key factor in all this is the son being on the autistic spectrum and not aware of his own finances. Dont know if this is relevant or likely to be taken into account by the benefits office.

Unsureoftheanswer

BoGoF wrote: »

Bearing in mind the Benefits people may already know about the increase in capital it would be foolish to try and hide the fact.

If they knew about it surely they would have made some mention of it during the last two years that benefits have been claimed. My theory is they don't.

Alice_Holt

Unsureoftheanswer wrote: »

to clarify, the benefits claimant is the son's wife. Not the son himself..

HB and other means rested benefits look at all household income and capital.
It makes no difference who made the claim, both husband and wife will be treated as having a joint claim, and both subject to benefit regulations.