Benefit sanctions question

playlister82

I have found these forums very helpful before so thought I would ask this slightly complicated question on my mum's behalf here.

Long story short - mum has recently reached state pension age, is receiving the state pension plus a small work pension. Recently she also claimed housing benefit to help with her council rent and tax, as her pension income wasn't enough to cover everything.

At the same time as this, mum took a lump sum out of her work pension. This took her savings account balance to around £21k. Due to confusion and naivete about the rules, mum did not state this at the time of her benefits application (as it hadn't happened yet). However, we now know that you are only allowed up to £16k in savings to still be entitled to housing benefit.

My question is, when mum declares this will she be subject to sanctions and how long will this last? We understand she can't claim housing benefit whilst she has over £16k in savings. We are more concerned about what sanctions there might be if any.

playlister82

Also to be clear, she has no intention of spending down her savings just to get to £16k. The question is about possible sanctions for not declaring this in the first place.

calcotti

When she declares the savings she needs to provide details of her accounts. All Housing Benefit and Council Tax Reduction paid since the savings went over £16,000 will be an overpayment which she will have to pay back. I can’t recall whether there any administrative penalties.

Once she’s paid back the overpayment and paid the rent and HB for a while her savings will come below £16,000 and she can apply again.

Presumably her pension income is over £182.60/week. Does she receive any other benefits?

playlister82

calcotti said:

Presumably her pension income is over £182.60/week. Does she receive any other benefits?

Thanks for your help. She is not receiving any other benefits. Just the state pension plus a work pension which is around additional £30 a week. This was declared in the application.

HillStreetBlues

How recently are you talking about?

playlister82

HillStreetBlues said:

How recently are you talking about?

State pension began in December. Lump sum was only received a couple of weeks ago. Between December and two weeks ago she had less than £10k in savings. Now it's around £21k.

HillStreetBlues

Report it ASAP.
I can't see any penalties or sanctions being issued as it's such a short time from reporting going over the 16k
Just any overpayment  paid back.

HillStreetBlues

Some people only get monthly paper bank statements so my the time they have checked to see if the money has gone in it can be a over a month till they know.

Contact the council saying you want to end the claim on the date the money went into your mothers account. 

playlister82

HillStreetBlues said:

Some people only get monthly paper bank statements so my the time they have checked to see if the money has gone in it can be a over a month till they know.

Contact the council saying you want to end the claim on the date the money went into your mothers account. 

Thanks for this. I think this is what we'll have to do.

HillStreetBlues

Actually might be the day before the money went into account.
So if had money on 17th,  end claim on the 16th.

Robbie64

It used to be that a change of circumstances for all means tested benefits (including Housing Benefit and Council Tax Support / Reduction) had to be reported within 28 days. Assuming it's the same then there is nothing to worry about as your mum has only recently received the lump sum. She just needs to report it, as advised.