Elderly mum hiding cash in the house and claiming pension credits

Worriedformum

I’m planning on contacting the CAB next week but nam stressed out. My ageing mum (68) has been claiming Pension Credits for about 6 years, and I’m pretty sure she gets council tax benefit. She lives alone and has no house related debt (mortgage/rent). She’s very frugal and sensible and has most of her faculties (she has bipolar and hasn’t worked for a long time) she’s been claiming pension credit, and withdrawing most of it as cash each week. However she has £10k in her current account as ISA. I understand this is the limit for Pension credit.

She however has amassed thousands in cash somewhere in her house. My concern is her block of flats or broken into last week and they stole her bike from the communal area. I’m terrified someone could break in and find the money and attack her if they found some of it.

My problem is, can she put that much money in the bank, surely what she’s been doing is benefit fraud? I can’t put it in my account because I don’t want to be an accessory!!

I’m stressed because she regularly forgets to lock her door as it’s an old Victorian block and her door swells. This all sounds insane but im so worried. What can I encourage her to do?!

PasturesNew

Yes it's benefit fraud. And, as you say, she's in a vulnerable position.

PLUS - if she were broken into and the money stolen, then she can't declare it else the benefits people would want their overpayments back...

As for the door - is it her flat? She could spend some of that money on a new door If she can't lock it, there could be another "big bolt" system she could at least have fitted and slide across from the inside.

Worriedformum

Yes it’s her flat, you can’t get her to spend over £10 on anything. She sits with no heating on and has circulation problems. I might have to arrange for a new door to be fitted and get her to refund me. I’m really worried about how she doesn’t seem to care how serious this all is.

calcotti

Worriedformum wrote: »

However she has £10k in her current account as ISA. I understand this is the limit for Pension credit.

There is no limit for Pension Credit but you are assumed to have £1 of income for every £500, or part thereof, over £10,000.

Ames

It might be ok, some people can have savings and still claim pension credit - there's another thread here that explains it, it's the one about pension credits and a second home.

Even if that isn't the case, it's only savings above 16k that means tested benefit stops at, between 10 (6 for working age claimants) and 16 benefit is reduced.

calcotti

Ames wrote: »

... it's only savings above 16k that means tested benefit stops....

There is no capital limit for Pension Credit.

Ames

calcotti wrote: »

There is no capital limit for Pension Credit.

But there is for council tax benefit.

Danday

Ames wrote: »

But there is for council tax benefit.

As long as Guaranteed PC is in payment even just £1 a week due to high savings, it gives an automatic right to full Council Tax Support.

Danday

Having cash stashed around the house is just as bad as not counting the value of cash in your pockets/purse/car etc.
People tend to ignore the money in all sorts of places.

annandale

She said she is pretty sure she gets council tax benefit. Sorry. If my mum was hiding money in the house and sitting with no heating on I would be putting it on

As for ageing. Shes 68. Her issue does not sound like it's her age. It sounds like she needs extra support.

If she has most of her faculties can you not ask her why she isn't keeping her money in the bank.

Frugal and sensible is not sitting in a freezing cold home when you have money to put the heat in and its not having thousands of pounds sitting in the house. You can be frugal and sensible and still heat your home.

Does she have support for her bipolar. Is she on medication? Does she have gp input?

How long has all of this been going on.

FBaby

Surely the est way forward is to stop council tax benefits and pay council tax with her stash then she can reply when it's gone. If she does care to spend it then surely she won't care to spend it on something that will save her getting into trouble?