Why do housing benefit need my bank statements?!

sabbykins · 25 February 2005 at 11:14AM

This is something that has really been bugging me- WHY when you are on low income, do the HB/CTB people need 2 months bank statements when you submit a claim?
I know i have nothing to hide but i find the thought of people noseying through my personal things very unsettling, almost like if you apply for benefits you surrender any privacy or dignity you once had!

Anyone know why and if this is the usual procedure?

Also, we booked a holiday which is on the bank statements, will we get in trouble??
(it only cost £700 btw for 4 of us, not a luxury break or anything)

*feeling annoyed*

appleblossom · 25 February 2005 at 11:30AM

Hi, yes it is standard that you will need to provide these - whilst you have nothing to hide - many others do - it is simply to ensure that what you are telling them is correct and that you do not have undeclared income/capital. You would be surprised how many people think they can get away without telling the LA about their 'little' private pension, their 'part-time' job, and their 'few' savings. It may seem like an invasion of privacy, but then you've just told them everything on the application form - if you have nothing to hide then you've no worries. regarding the holiday - that would depend on when the debit was in accordance to the claim, what your income was etc so can't give a cut and dry answer to that. (also, make sure you provide details for all accounts you have - if they see transfers to other accounts etc, they will need those a/c detls and it will only hold your claim up if you do not provide them at the time) hth

sabbykins · 25 February 2005 at 3:31PM

Thanks julieblake, you sound like you know what you are talking about

In relation to the holiday, it was only last month so our income was the same as now (which is meagre!) i was just worrying that they might think "hey, if they went on holiday maybe they have more money than they have declared". But the fact is we dont drink or smoke, and are really sensible with our money, so our holiday was a result of saving up.

I feel a bit better after reading your reply, but although I do understand why they need to do it i still find the invasion of privacy a bit chafing!

Thanks,
Will send of the info without worrying now

Fran · 25 February 2005 at 4:24PM

Sabbykins,

Yes this is what you have to do to claim benefits, it's not as easy as people think.

If you have savings under £3,000 it won't make any difference to your claim, however if you had savings over that just before making your claim they may well look into it. You may still be entitled to something up to maximum of £8,000 savings though.

Fran · 25 February 2005 at 7:18PM

If the benefits people have any suspicions though, they can now ask banks and other organisations for info on your accounts etc.

jellyhead · 25 February 2005 at 8:23PM

i can see why they'd want to see your bank statements, to make sure you're being truthful. it does seem like an invasion of privacy and it's never happened to me so i can see why you don't like it. but i don't think they should be able to comment on your spending habits as long as you told the truth about your income. people who don't smoke have a lot more extra money than those who do and i don't see what difference it makes what you're spending your money on as long as you only get the amount of money you say you get.

i had to provide bank statements at uni when asking the student union to help with childcare fees. they actually gave me a christmas bonus because they thought i managed my money well (i was the only student applying for help who didn't have direct debits from the pub lol!). i doubt housing benefit will give out bonuses though lol! i didn't like handing in my bank statements, even though there was nothing to hide. i worried about silly things like cash coming out of the hole in the wall - they don't know whether i'm spending that in the pub, cigarette shop or on a market stall buying groceries, i worried it might make me look frivolous to have withdrawals all the time but really all they wanted to do was make sure i told the truth about my income, so try not to worry :-)

Midas · 26 February 2005 at 12:53AM

I spent a bit of time working for the Housing and Council Tax Benefit people a few years ago, 'determining' people's claims as they like to call it. I wouldn't worry too much about people going through your bank statements with a fine toothcomb. They are mainly needed so the box on the computer system for 'money in bank' can be filled. I always thought this was a bit arbitrary as we would just use the closing balance, which may or may not be a fair reflection on your average balance.

The other thing statements would be (often cursorily) checked for was payments out into other savings schemes etc, which would only be a problem if we hadn't been told about them on the form.

The whole system relied to a large extent on claimants being honest in their declarations (hence the problem of fraud). Many claimants would simply tick 'no' to all the questions regarding money, savings etc (i.e. saying they didn't have any bank or savings accounts of any kind). This was usually just accepted as read - how, after all, do you get someone to prove they don't have a bank account? The sheer volume of claims meant that it was not possible to have armies of investigators checking up on people.

Unfortunately a small proportion of claimants are dishonest and give the rest a bad name. But if you tell the truth and meet the criteria you will ok: the system is set up to get money to people who need it rather than to try and prevent legitimate claimants from claiming. The few anti-fraud measures that there are cause hassle for the honest majority, but are sadly necessary...

sabbykins · 26 February 2005 at 10:48AM

jellyhead wrote:

i didn't like handing in my bank statements, even though there was nothing to hide. i worried about silly things like cash coming out of the hole in the wall - they don't know whether i'm spending that in the pub, cigarette shop or on a market stall buying groceries, i worried it might make me look frivolous to have withdrawals all the time

ME TOO!!! lol

You got my feelings in a nutshell there jellyhead

For instance i withdrew £100 from the cashline to go clothes shopping with my 2 teenage daughters, and i am worried they might interrogate me about it, lol. I was even worried that i haven't got the receipts any more and they might ask for them :-s

But i get your point that they arent caring WHAT you spend your money on just that you only have as much income as you say you have.
(so in theory i could be a junkie and they wouldnt care, lol as long as i wasnt selling of course, LOL)

I feel so much better after reading this thread

ravenlooney · 26 February 2005 at 12:58PM

sabbykins wrote:

This is something that has really been bugging me- WHY when you are on low income, do the HB/CTB people need 2 months bank statements when you submit a claim?
I know i have nothing to hide but i find the thought of people noseying through my personal things very unsettling, almost like if you apply for benefits you surrender any privacy or dignity you once had!

Anyone know why and if this is the usual procedure?

*feeling annoyed*

Hi,
We've been in reciept of HB/CTB for a few years now. When I first applied they asked for bank statements. As I do not keep my statements (I check them then burn them) I asked if I really needed to send them. I was told that it was just for proof of bank account and a cashpoint slip would do. So I sent them a slip with the balance of my account scored out (as my balance at that exact moment in time is nothing to do with them IMO) They accepted it no problem. So now anytime I need to renew the claim, I just send in a cashpoint slip.
Personally, I think that they just want to know too much about you and try to collate as much info about you as they possibly can, and if people send in full statements to them without question, then it makes their job easier. But if you're entitled to JSA or IS then you're entitled to HB/CTC. And if your income and savings are low enough to be entitled to these then it goes without saying that you get the rent help. Sorry, rant over ... its just that I hate it when they think its ok to stick their nose into your whole life just cos you're poor.

sabbykins · 26 February 2005 at 6:24PM

ravenlooney wrote:

I hate it when they think its ok to stick their nose into your whole life just cos you're poor.

Well said!!
The cashpoint idea is an excellent one btw

Fran · 26 February 2005 at 6:34PM

Yes it is a good idea, please let us know if it works.

Why do housing benefit need my bank statements?!

Comments

Confirm your email address to Create Threads and Reply

🚀 Getting Started

Categories

Is this how you want to be seen?

Get our FREE Weekly email full of deals & guides - and it’s spam-free