Bankruptcy Income Payment Order and loss of Housing Benefit

Chazpots

Hi I'm new to posting threads so please bear with me! Have a big big problem with Housing Benefit. My partner has an Income Payment Order (IPA), is on a No Tax code and paying the money (he would of been paying in tax) to the solicitor appointed by the OR. Housing Benefit are now saying that this money is income and have stopped our benefit and demanded £1500 overpayment. Surely this can't be right. The OR found that my partner had insufficient funds to pay creditors -hence the IPA! He has no choice but to pay this money each month, how can they treat it as income? OR also said that the IPA would make no difference to our financial circumstances! Now £200 a month down and facing a huge bill! Has anyone had this happen to them or heard of this before and can help? Many thanks

fermi

It has happened to someone here before. Just need to find the thread.

fermi

OK. The previous thread was just to do with the NT tax code payments, and the agency that couldn't understand it was the CSA.

Link: No Tax Code and the CSA - Urgent Help required.

But the principle is the same.

If you talk to your OR, maybe they will write a letter explaining the legal status of the payments to the HB people.

I'm sure your OR will have heard of this sort of mix-up before. And believe me, the OR's office are usually nice to talk to and willing to help when things go wrong like this.

Chazpots

Fermi, thanks for taking the time to help. You're right, my OR has always been approachable and helpful. Spoke to them this morning and they have offered to put the council straight on what the NT code actually means. Additionally, they have given us the option of not paying the money to Clark Willmot this month if it's not sorted out in time. It's so nice to find someone on your side!

debt_doctor

That is absolutely mad ! You must appeal the decision ( you have 1 month ) and get the help of CAB or a welfare rights unit. Also involve your MP if necessary.

That is 'income ' you have no way to access. Also enlist the help of your OR.

Best

DD

debt_doctor

If money is paid to someone on your behalf this, under benefit legislation is called 'notional income' Notional income counts as 'capital' In housing benefit. Capital ie savings of less than £ 6000 are ignored. If you had £ 6000 in savings then the OR would be interested !!

Also such payments are disregarded if you or a member of your family on who's behalf the payments were made are Bankrupt.

Source; CPAG welfare benefits handbook.

Best

DD

Chazpots

Well the latest is that HB have upheld their original decision. Were very sympathetic but said the legislation does not specifically mention these circumstances and certainly doesn't exclude these payments from income. Funny how when the law is not specific they will still find in their own favour! Said they thought it was ridiculous but couldn't change it. Guess it's now down to me to appeal. Need to get in touch with my local CAB and MP.
The OR in this instance has been little help. Said they would put the council straight (but as far as I'm aware they have no juristiction over the councils decisions) and to quote "there was nothing else that they could do" (diiferent to what they said a couple of days ago). So there we have it...no one wants to accept responsibilty or indeed help me. I'm left in this hole..This can't be right!!!!

tigerfeet2006

That's bloomin' ridiculous. I would definatly get in touch with your local CAB and your MP. Maybe ask to talk to your OR assistants boss as well and ask them to help.

debt_doctor

Hi
That is a reaction where the DWP do not know what to do ! They and your OR have responsibility here.

I wont be posting again till wekend but I / we will fight this. I will pm you at the weekend.

Best

DD

fermi

There is a very similar and interesting thread here:

Link: NT Tax Code now lost Housing Benefit! HELP!

debt_doctor

Thanks for that Fermi, my thoughts are that 1) The DWP have no idea how to approach this subject and 2) The OR has to ensure that the BR is left with enough funds to meet the domestic needs of the BR and his/her family, so if DWP insist on reducing income via housing benefit then no IPA on NT tax code.

This really has my interest - totally unfair and im not letting go !!

Best, and be in touch

DD