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Housing benefit overpayment

I’m asking this question on behalf of my friend.

He received a letter from council that he has been overpaid in housing benefit from 2015/2016 and they stated he has capital of £15000 in his account during that time and need to pay it back.

He borrowed money from his father to start business but couldn’t start and return back to them when his father and mother gone through some medical surgery.

Need advice where do he stand because money was never belongs to him.

Please advice

Comments

  • poppy12345
    poppy12345 Posts: 18,976 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    sadia85 wrote: »
    I’m asking this question on behalf of my friend.

    He received a letter from council that he has been overpaid in housing benefit from 2015/2016 and they stated he has capital of £15000 in his account during that time and need to pay it back.

    He borrowed money from his father to start business but couldn’t start and return back to them when his father and mother gone through some medical surgery.

    Need advice where do he stand because money was never belongs to him.

    Please advice
    As the money was in his bank then it's classed as savings from the minute it arrives in his bank.
  • sadia85
    sadia85 Posts: 107 Forumite
    Reference to my above original post i want to update more about his decision by the council.

    Council sent him the over payment bill of £14000 for over two year periods while there was money in the account given by his father and returned back to him. He agreed with the council to pay them back any over payment on monthly installments.

    His housing benefit is also re instated last month but today he received the letter from the DWP officer who conducted his interview under caution that he has sent my case to prosecution service to decide if he will be prosecuted or not.

    Question is if he is agreed to payback than why will be he prosecuted ? and what kind of outcome he may expect.

    Thanks
  • pmduk
    pmduk Posts: 10,710 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    sadia85 wrote: »

    Question is if he is agreed to payback than why will be he prosecuted ? and what kind of outcome he may expect.

    I can't put myself in the place of the prosecutor, but I suspect they feel he deliberately misled them and is only repaying them the overpayment because he has been caught. I can't advise you on the likely outcome, sorry.
  • sadia85 wrote: »
    Reference to my above original post i want to update more about his decision by the council.

    Council sent him the over payment bill of £14000 for over two year periods while there was money in the account given by his father and returned back to him. He agreed with the council to pay them back any over payment on monthly installments.

    His housing benefit is also re instated last month but today he received the letter from the DWP officer who conducted his interview under caution that he has sent my case to prosecution service to decide if he will be prosecuted or not.

    Question is if he is agreed to payback than why will be he prosecuted ? and what kind of outcome he may expect.

    Thanks

    Thought it was your friend?
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