Benefit fraud

Katy64

Hi ive recieved a letter from dwp from fraud and error dept. Last year i took a lump sum pension payout of £11.000.i did write to let them know but did not follow up when no reply.i thought was allowed £16.000 in saving i quickly spent the money on paying off debts and some essential home repairs etc and a holiday.as a pension i honestly thought was allowed .what will happen now .im worried sick ive done something wrong.I have been asked to provide bank statements and proof was a one off payment.please can anyone give me advice on what to do and what to expect.

poppy12345

If you're claiming an Income related benefit then savings, including pension lumps sums of £6,000 and over will see a reduction of £1 for every £250 over that amount.


You will have an over payment, which will need to be repaid. Didn't you think of ringing them at the time, rather than writing to them?



You need to send DWP what they've asked for.

calcotti

poppy12345 wrote: »

You will have an over payment, which will need to be repaid. Didn't you think of ringing them at the time, rather than writing to them?.

I don’t think it’s unreasonable to expect that if you write to a government department they will take note of what you’ve told them and contact you if they need more information. If it had been me I would have followed up but I can understand someone not doing so.

OP, as poppy says there will have been an overpayment which will likely have to be paid back. You could argue that, as you told them, it is official error and you should not have to pay any overpayment back. However even if you have a copy of the letter you sent it may be difficult to prove that you sent it.

This kind of investigation often happens with one off pension withdrawals where DWP need to confirm that regular withdrawals are not being taken which would be treated as income - that’s why they need more I nformation. If you have anything from your pension company confirmingthe situation send copies of that too.

poppy12345

calcotti wrote: »

I don’t think it’s unreasonable to expect that if you write to a government department they will take note of what you’ve told them and contact you if they need more information. If it had been me I would have followed up but I can understand someone not doing so.

Personally, i wouldn't trust them and i would have rang to report the changes.

calcotti

poppy12345 wrote: »

Personally, i wouldn't trust them and i would have rang to report the changes.

I agree with that (I am a belt and braces type of person) but I can understand someone taking a different view - particularly if they’ve had limited dealings with government departments!

Katy64

I do have the information asked for. I realise now should have followed up. Its what will the procedures be thats worrying me sick.

Katy64

I do have the information asked for. I realise now should have followed up. Its what the procedures are now thats worry me sick.can anyone help with that.sometimes having an idea what can happen helps to deal with it.

poppy12345

With a lump sum of £11,000 that would be a £20 per week deduction. You say you quickly spent the money but paying off debts could be classed as deprivation of captial, so you may have more of an overpayment than you think. That will be down to a decision maker to decide.


My opinion is worst that could happen is that you may have a fine on top of the overpayment.

Katy64

Could i be prosecuted .will i lose benefits.

poppy12345

Katy64 wrote: »

Could i be prosecuted .will i lose benefits.

I highly doubt you'll be prosecuted. That's totally different to a fine.

Katy64

Sorry please excuse my inexperience posting.do you think could be prosecuted. And will i lose benefits. Thank you.