Housing Benefit capital assessment

Enigmaman

I am having a discussion with a friend who says the local council cannot find out all your bank/building society accounts unless they apply to do a formal investigation. he is not from this country and does not understand our system that well. I believe they can. Can anyone settle this argument? What powers do local councils have to investigate bank accounts that you do not make them aware of? 

HillStreetBlues

Your friend is correct, there has to be a justifiable reason for body such as local council, DWP, HMRC. So for example they believe fraud is being committed then they can apply to see accounts. 
I believe there is talk of a law to change this.

HillStreetBlues

This is the talk I was thinking of.
https://www.gov.uk/government/news/new-benefit-counter-fraud-plan-set-to-save-taxpayer-2-billion

Measures also include boosted access to bank data on a larger scale

Muttleythefrog

I understand only with a fraud investigation can they actually look at the accounts but they get basic information on accounts held which can trigger investigations AFAIK. 8 years ago I was investigated for not declaring significant savings in a savings account... I'd not declared it as a) it had been closed and b) it had much less in it than their information suggested. If the friend thinks they can hide accounts then I would suggest increasingly that would be difficult and data sharing is more likely to improve in technical as well as legal terms. But actual looking within accounts is likely only going to remain possible with a formal fraud investigation or via account holder.

HillStreetBlues

Muttleythefrog said:

I understand only with a fraud investigation can they actually look at the accounts but they get basic information on accounts held which can trigger investigations AFAIK. 8 years ago I was investigated for not declaring significant savings in a savings account... I'd not declared it as a) it had been closed and b) it had much less in it than their information suggested. If the friend thinks they can hide accounts then I would suggest increasingly that would be difficult and data sharing is more likely to improve in technical as well as legal terms. But actual looking within accounts is likely only going to remain possible with a formal fraud investigation or via account holder.

Out of interest was it just a savings account or an ISA?

Muttleythefrog

HillStreetBlues said:

Muttleythefrog said:

I understand only with a fraud investigation can they actually look at the accounts but they get basic information on accounts held which can trigger investigations AFAIK. 8 years ago I was investigated for not declaring significant savings in a savings account... I'd not declared it as a) it had been closed and b) it had much less in it than their information suggested. If the friend thinks they can hide accounts then I would suggest increasingly that would be difficult and data sharing is more likely to improve in technical as well as legal terms. But actual looking within accounts is likely only going to remain possible with a formal fraud investigation or via account holder.

Out of interest was it just a savings account or an ISA?

Just an ordinary savings account..
I actually struggled to identify what they may be referring to (after speaking to them on phone to ask what I could provide to help them as they had given no information - I had assumed they would be looking into my living circumstances as at the time I'd enquired as to the consequences of my partner moving in so I could give the Home Office accurate income figures in my partner's Visa application to move to UK) because they said "Bank of Ireland", I had no significant savings and I had never really heard of that bank... however I looked at accounts I had held and it turned out they were the bank ultimately behind a savings account and just checking my old records that was Virgin. I had never declared that account or held savings as at the time and previous they'd only asked for total savings held which were always well below £6k. I was able to get statements for the entirely of the closed account and present that with existing in interview. Interviewer went through every transaction of savings and even took photocopy of my premium bonds certificate.  At that interview they held a sheet showing accounts and account numbers and my assumption was that reported levels of interest had extrapolated to a balance completely different than it had ever been... the interviewer suggested their information is rarely wrong and was very hostile (including when she gave the ridiculous figure for savings and I joked that I'd love to know where it is) and interrogatory throughout before getting me to sign a statement detailing monies held, their movements etc over time. Not a pleasant experience (including having to watch the previous person being interrogated through the glass panelled office and being shouted at while they cried) which is perhaps why I remember it so vividly and with zero follow-up for added suffering... I read on another thread recently someone say that a compliance interview is a positive thing.... I em.. will let others imagine my response as I will not be giving it.

To add to my above post.... if the op's friend is foreign bear in mind they then have the potential to be removed or lose status here if ever found to have committed fraud or owe money such as to the state. It could also affect a naturalisation application although fraud alone would be unlikely to lead to removal of British citizenship if already obtained. So they would be at likely enhanced risks if they were to let's say try to hide savings.... of course not suggesting they intend to (I'm sure I will have had similar innocent discussions with my foreign wife) but I think they should simply play cricket with a straight bat and assume that data sharing will get stronger not weaker (governments will always be able to justify it as 'detecting and preventing crime' or 'ensuring people get the monies they're entitled to') and that they can identify the existence of accounts... and with fraud investigation see in detail such. I tend to take a line that under investigation they probably know more than you think and possibly even more than you... but that might be a hangover from my days 'helping police with their enquiries' where I'd find out what post hadn't arrived yet...lol. The truth sets you free.