Council tax and savings

[Joe Cool]

I feel a bit of a heel posting this question, but here goes. I pay full council tax, but almost all my friends claim some type of benefit, despite the fact that they have savings.

I am on a low enough income to claim benefit on council tax, but as I have more than the stipulated amount of savings, I don't claim.

Now my friends say that councils have no powers to look into private bank accounts or savings accounts with building societies, so anybody who declares their savings are mugs.

I think they're wrong about that, and to be honest this issue is starting to bug me. Can anybody direct me to the legislation which will give a clear answer on this, please?

[Joa]

The Guidance and regulations it has been derived from are here: DWP - Resource centre - Information for local authorities - Publications - Guidance and manuals - Housing Benefit Guidance Manual - Part B - BW1 - Assessment of capital

As for the powers of the local authority to find information- it has been an ongoing struggle. They can ask and they can investigate in may ways- but they cannot have access to your bank account without your permission and without you telling the that you have such bank account. There are intensive anti-fraud measures based on data-matching. For example Social Security Fraud Act 2001 (SSFA) had introduced powers for authorised staff from the Department for Work and Pensions (DWP) and local authority Officers to obtain information from listed organisations about their customers, in order to help combat fraud against the benefits system. Banks and building societies are not "listed organisations" however and that's how some people get away with hidden saving accounts etc.
But it is wrong and fraudulent.

LA's ask for bank statements as part of the application for CTB- these are combed through with magnifying glass, for evidence of transfers/payments between account

[Joe Cool]

Many thanks, Joa, for posting that reply. So it seems that they are right and I am wrong about this. I read your link with interest, and I am astonished that there are no local authority powers.

As an adjunct to my question, what is the situation with Pension Credit?

Again, if people don't notify their savings they can claim substantial extra money every week, and I know two people who do. Surely the Government - operator of the Pension Service, as opposed to local authorities - have the power to enquire into savings? Or am I wrong again?