Housing Benefit, Council Tax Reduction and Savings Query

Nerdtech

toomuchinfo said:

If you live there and your Dad has Housing Benefit there will be a non dependent deduction and you will be expected to give a contribution. I think they ask for your income and would expect you to claim any means tested benefits that you are able. That’s maybe why they are asking about your income and capital.

He gets attendance allowance and is registered blind so I think he's exempt?

Blancmang25

The council have sent your father a review for his hb/ctr claim which is completely normal. Which they have reviewed and are asking for more information regarding the information submitted.
As your father(the claimant) is receiving attendance allowance there will be no non-dependant deduction.
However, they have requested your bank statements because your father is transferring all of his money every week to your account. The benefit section need to see your bank statements to make a decision regarding the payments your father sends and to establish if he is depriving himself of money. As you have said you have amassed a large sum because of your father sending his money to yourself.
I would send the information to the benefit section ASAP, as they can suspend your father's claim due to failing to send information requested, they will be a time limit on the letter received. If you fail to supply the information they can cancel the claim.
With regards to the carer's allowance you receive, you are correct this is not a means tested benefit. 
You have stated you have not applied for UC, which is a means tested benefit, so any savings you have would be taken into account. Hence why the benefit section are asking why you have not claimed UC as this is money you are not claiming but are entitled to. The questions they have asked for your father's claim are correct and as I have said you need to send the information requested ASAP and clarify why you have not claimed UC. They can then make a decision with regard to the hb/ctr claim.

Nerdtech

Blancmang25 said:

The council have sent your father a review for his hb/ctr claim which is completely normal. Which they have reviewed and are asking for more information regarding the information submitted.
As your father(the claimant) is receiving attendance allowance there will be no non-dependant deduction.
However, they have requested your bank statements because your father is transferring all of his money every week to your account. The benefit section need to see your bank statements to make a decision regarding the payments your father sends and to establish if he is depriving himself of money. As you have said you have amassed a large sum because of your father sending his money to yourself.
I would send the information to the benefit section ASAP, as they can suspend your father's claim due to failing to send information requested, they will be a time limit on the letter received. If you fail to supply the information they can cancel the claim.
With regards to the carer's allowance you receive, you are correct this is not a means tested benefit. 
You have stated you have not applied for UC, which is a means tested benefit, so any savings you have would be taken into account. Hence why the benefit section are asking why you have not claimed UC as this is money you are not claiming but are entitled to. The questions they have asked for your father's claim are correct and as I have said you need to send the information requested ASAP and clarify why you have not claimed UC. They can then make a decision with regard to the hb/ctr claim.

Thanks for the clarification. I have sent an e-mail off to the benefits section explaining everything as best I can and have ordered paper statements which I am expecting within 3-5 working days. When I get them I will send them off to the relevant section with the letter my dad received, they have said within 1 calendar month, and take it from there. 

Nerdtech

I have an update and want to tell you all just in-case it helps people in future to avoid this sort of situation. I sent an e-mail off a few days ago to the benefits office explaining the situation I have outlined in my original post.

I received an e-mail back today saying that even though the money was not in my dads account and in mine it's still classed as his savings. As you can imagine this has shocked me and I don't understand it but I should have checked with the benefits people from the start to make sure this was ok. Consequently, his HB and CTR has now been stopped and after supplying all the statements I can they will have to work out how much he owes in overpayments and it could be a very substantial amount.

So beware if you find yourself in a similar situation, even if you think it's ok it really might not be, so please check and be sure. If at all possible keep your accounts separate if any benefits are means-tested otherwise you could end up in hot water. 

Thanks.

HillStreetBlues

Nerdtech said:

I have an update and want to tell you all just in-case it helps people in future to avoid this sort of situation. I sent an e-mail off a few days ago to the benefits office explaining the situation I have outlined in my original post.

I received an e-mail back today saying that even though the money was not in my dads account and in mine it's still classed as his savings. As you can imagine this has shocked me and I don't understand it but I should have checked with the benefits people from the start to make sure this was ok. Consequently, his HB and CTR has now been stopped and after supplying all the statements I can they will have to work out how much he owes in overpayments and it could be a very substantial amount.

So beware if you find yourself in a similar situation, even if you think it's ok it really might not be, so please check and be sure. If at all possible keep your accounts separate if any benefits are means-tested otherwise you could end up in hot water. 

Thanks.

Make a formal complaint as this is not correct.
They would need to prove that you are holding the money for your father, which they can not do as both you and your father state it's your money. (The council is the one that needs to prove it's your father's money, rather than you proving it isn't)
If it comes to it, go to a Tribunal.

Nerdtech

HillStreetBlues said:

Nerdtech said:

I have an update and want to tell you all just in-case it helps people in future to avoid this sort of situation. I sent an e-mail off a few days ago to the benefits office explaining the situation I have outlined in my original post.

I received an e-mail back today saying that even though the money was not in my dads account and in mine it's still classed as his savings. As you can imagine this has shocked me and I don't understand it but I should have checked with the benefits people from the start to make sure this was ok. Consequently, his HB and CTR has now been stopped and after supplying all the statements I can they will have to work out how much he owes in overpayments and it could be a very substantial amount.

So beware if you find yourself in a similar situation, even if you think it's ok it really might not be, so please check and be sure. If at all possible keep your accounts separate if any benefits are means-tested otherwise you could end up in hot water. 

Thanks.

Make a formal complaint as this is not correct.
They would need to prove that you are holding the money for your father, which they can not do as both you and your father state it's your money.
If it comes to it, go to a Tribunal.

Yeah I'm in total shock to be honest and don't understand why this has happened. I will see how it plays out and make an appeal against the decision and even go to Tribunal. Surely this cannot be correct? 

HillStreetBlues

Nerdtech said:

HillStreetBlues said:

Nerdtech said:

I have an update and want to tell you all just in-case it helps people in future to avoid this sort of situation. I sent an e-mail off a few days ago to the benefits office explaining the situation I have outlined in my original post.

I received an e-mail back today saying that even though the money was not in my dads account and in mine it's still classed as his savings. As you can imagine this has shocked me and I don't understand it but I should have checked with the benefits people from the start to make sure this was ok. Consequently, his HB and CTR has now been stopped and after supplying all the statements I can they will have to work out how much he owes in overpayments and it could be a very substantial amount.

So beware if you find yourself in a similar situation, even if you think it's ok it really might not be, so please check and be sure. If at all possible keep your accounts separate if any benefits are means-tested otherwise you could end up in hot water. 

Thanks.

Make a formal complaint as this is not correct.
They would need to prove that you are holding the money for your father, which they can not do as both you and your father state it's your money.
If it comes to it, go to a Tribunal.

Yeah I'm in total shock to be honest and don't understand why this has happened. I will see how it plays out and make an appeal against the decision and even go to Tribunal. Surely this cannot be correct? 

It's not..

HillStreetBlues

What they are saying is you are the legal owner of the capital but your father is the beneficial owner of the capital. With beneficial ownership it's the onus is always on the claiming it.
EG if it was the other way round and you had your money is your fathers account, it would be up to you to prove it's your money in his account.
All the council can is have a hunch, but that's a long way from any sort of prove.

Blancmang25

Hi,
Thanks for the update.
You will need to wait for the decision letters from the benefit section, these letters will have the reason why they have cancelled the hb/ctr claim, the date of cancellation and the amount of the overpayment.
You will also receive new council tax notices for the same period.
When you receive the letters it will inform you of what you can do if you disagree with their decision.
Your situation is complicated.
The money your father receives should have stayed in his account. He should have payed his bills, living expenses etc..just like everybody else.(I am presuming you have paid the bills from your account?)
When his capital, (if he wasn't spending very much) began to accumulate the benefit section needed to know, if his capital was growing, they would have taken a notional income from the capital, which would reduce his hb/ctr award.
Once his capital exceeds £16,000 he is no longer eligible as this is the capital cut off.
Unfortunately as your father is receiving a means tested benefit, the benefit section have/ will make the decision that the money you have in your account is your father's.
I would advise you to contact the Citizens Advice when you receive the hb/ctr decision letters. 
They can advise you on the best way to proceed etc.

Blancmang25

HillStreetBlues said:

What they are saying is you are the legal owner of the capital but your father is the beneficial owner of the capital. With beneficial ownership it's the onus is always on the claiming it.
EG if it was the other way round and you had your money is your fathers account, it would be up to you to prove it's your money in his account.
All the council can is have a hunch, but that's a long way from any sort of prove.

The housing benefit regulations consider deprivation of capital or income. I expect the council tax reduction scheme for the local authority will have the same regulation.