Housing / Tax Benefit

[Fowlersrs]

I'm looking for some advice here from anyone who may work for a council or know anything about this, it's quite a complex issue.

Basically my mother claims the above and always has done as her medical conditions means she is not able to work or sustain a living. She has never had any problems at all until now;

From what I understand (never claimed in my life so a pretty limited) there is a threshold you must be under to claim this so they know your not cheating the system, now my mum has always been under this but she was the first to admit she maybe gets a bit more than she needs. Anyway when I left home she helped me for a period with my bills, etc to help me get my with my mortgage on my own.

Now the council have this year refused to offer her this benefit as they basically saying what she has given to me is what they call Notional Capital, so basically she has had the money, the fact she's given some of it away to me has to be taken into consideration, this basically stops her claiming now along with what she has saved in the bank.

This is fair enough in her eyes and in most peoples I guess as saving money your given from the state is some what taking the piss really, but what they are saying now is that when she has no money left she can re apply but this notional capital will still prevent her claiming unless I write a letter to the council confirming it was given to me and that it was used to help me get along in life.

I am happy to write this letter, however I find myself questioning there actions, surely they know I've had this money so why do I need to confirm it? I am concerned they could be trying to stick me or my mother up for tax fraud essentially..

Does anyone here have any ideas on this, what should be my next step? The council have never implied they're going to take legal action but I'm a little concerned as you can imagine.. Could they take me to court? Could they take nm mother to court? Or are they being genuine and they just need it to back up reversing they're decision??

[CaNsA]

Hold on a sec... who told them about the money going into your pocket?

[Fowlersrs]

[CaNsA]

[Fowlersrs]

[Ste]

She has too much income to be eligible or she has too much capital to be eligible?

[Fowlersrs]

[Hahadumball]

youre gonna have to pay it all back
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[iooi]

TBH. I would not be worried about. "notional capital". I would be more worried about a possible fraud case due to failure to declare savings.
Don't think they would be claiming off you. More that your mother could end up in court and either have to repay the money back or end up in jail.


Makes for interesting reading

Given the current state of council coffers. Taking cases all the way could well increase to reclaim loses.
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[Ste]

Why not just confirm to them that you received the money? If necessary, hopefully you've you bills going out from your bank account that match up with her giving you money to help with your bills when you first left home.

Out of interest, roughly how much in total did your mum help you with?

She could go and speak with someone at her local Citizens Advice Bureau about the finer details of sorting out her Council Tax Reduction.

https://www.citizensadvice.org.uk/benefits/help-if-on-a-low-income/help-with-your-council-tax-council-tax-reduction/how-your-council-tax-reduction-is-worked-out/council-tax-reduction-how-your-capital-is-worked-out-if-you-re-a-pensioner/

[Fowlersrs]

[Ste]

Oh.

Five years worth of monthly payments... speak with Citizens Advice.

[Tracey Suntan-King]

I used to work in council housing and later on, in housing associations.

I don't think there is any need for you to have to make any declaration about money you've had from your Mum or in fact have any contact yourself with the council on this matter. Your circumstances are of no relevance to this matter.

The matter is entirely between your Mum and the department that's assessing her.

Any payments she's made to you from her income are of no relevance to her claim. How she manages her benefit income once it's paid to her is none of their business.

However, if when claiming she has failed to declare savings or other sums of money she has received (apart from her benefits) then she has fraudulently claimed. In this case they will reclaim, from her, all overpayments and possibly prosecute.

I don't wish to alarm you. If you are going to help her you need to be clear exactly what her situation is. That way you can work out whether they are going to seek repayment or prosecute.

Ask her directly if she failed to declare her capital or (non benefit) income. failure to declare is a much more serious outcome than being frugal and supporting her son through her benefit income.

If the above is not the case then it is more likely that they are looking for reasons to reject her latest claim. In this case she should use the established appeals procedure.

TL:DR if she's fiddled (deliberately or not) she's in trouble and will have to repay. If she hasn't fiddled she'll have to appeal. Your position is irrelevant.
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[Taught2BCauti...]

I know someone who was in a similar position, but with a different type of benefit.

Basically, she had paid towards her sister's monthly payments on a car over a 2 year period, and the council had deemed it as a sort of investment, and money that when repaid to her, would constitute 'savings' or un-earned income.

She told them that her sister had paid her back in cash over the same period, which she had subsequently spent on her herself - and the problem went away.

I'm guessing that the council would be searching through bank accounts, to find unusual spending patterns that would suggest mis-use of the benefit payments, money laundering, etc.
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