IUC done - what now?

[AWC]

Hi guys, as always, brilliant site! 8-)

 

I'll try and keep this simple. Okay, my mother has had a reduction on her council tax for approx 4 years due to low income. She has always `knowingly' abided by the rules, been open and honest with the council and given them all the information they have asked for. Two months ago they requested some more of her bank statements, to which she confidently supplied. Then, three weeks ago she received a letter asking her to attend an `Interview Under Caution' a week later.

 

She attended, they laid out the statements which she had supplied and they wanted to know where she had got £50k from. 18 months ago her mother passed away and my mother received £50k in part payment for her mothers will, she was instructed to split this amount into 4 and distribute to her two brothers and sister which she did, and my mother got the remaining £12,500

 

They interviewer said she was supposed to inform them of a `change of circumstances', she said she thought the threshold was £16k but is isn't. She didn't admit anything, but stated that she never intended to defraud the DWP of any money and prooved that she has always been up front `to the best of her knowledge'.

 

Anyway, that was two weeks ago, she then received a letter 9 days later (quite quick really) saying that she has been overpaid £1,200 in benefit and she has to pay it back, which she is going to do. The letter also stated that it doesn't mean that they may not consider taking legal action.

 

So, question is, what now?

Edited September 17, 2009 by AWC

[Animal Lover]

Once you have been informed of the overpayment the fraud section will consider what sanction, if any, they wish to impose. There are four options, no further action, a caution (NOT a police caution but remains on LA and DWP records for 5 years), an administrative penalty (an additional 30% on top of overpayment) or prosecution. The overpayment will have to repaid regardless. You should have been informed of this at the IUC. If you are worried ring the fraud section and ask when you can expect to hear from them. Hope this helps.

[AWC]

Hi there Animal Lover and thanks for responding. My mother is fairly calm at the moment, but obviously looking forward to getting this all behind her. She hopes it's either no further action or a penalty/caution, hopefully not prosecution, especially for £1,200 but one never knows what they might decide?

[AWC]

Well, she repaid the overpayment immediately on getting the letter way back in July, and as yet has only received an acknowledgement letter of her payment, but nothing else.

 

Odd?

[antone]

That sort of thing is fairly typical. Since it's a relatively small amount of money and she has paid it back, I'd be surprised if the council or DWP took any further action.

 

She could try replying to the receipt she got, saying something like "I would appreciate your confirmation that this matter is now settled."

[bazak1]

By the way, the threshold was £6,000.00, but i did hear that it has been altered since the lst budget to 10,000.00

[antone]

By the way, the threshold was £6,000.00, but i did hear that it has been altered since the lst budget to 10,000.00

 

Capital between £6000 and £16,000 will affect benefits. Any amount below £6000 is ignored, any amount over £16,000 will generally disqualify a person from claiming a means-tested benefit. For amounts in between, £1 per week is deducted from the award for every £250 over £6000.

 

The £10,000 limit applies to people in certain types of residential care.

[AWC]

Thanks for the info, much appreciated.

 

Is it worth her telephoning the DWP to ask if they intend taking any further action, or will they not tell her.

 

On the whole she says she is fine, but I know that silently she is still very worried as she has never been in any kind of trouble before. I think she just wants to settle her mind either way.

[MIKEY DABODEE]

if its Housing Benefit would it not be best to phone your local authority to find out

DWP does not deal with Housing Benefit or has she an overpayment of benefit as well

If she has benfits like I.S the LA will inform them

 

My mother got muddled with her saivngs and had a reduction in her Council tax for a few months this year, they found out hauled her in and she had an IUC but she was not allowed to take any one in with her, she told us later, she was called back and had a caution, she is seventy six, they treated her awfully, still makes me angry now

Edited September 18, 2009 by MIKEY DABODEE

[AWC]

Firstly, many thanks to all for your help and advice!

 

Just thought that I would give a quick update, may benefit others.

 

My mother received a further letter last week offering her the oportunity to pay a 30% admin fee, but no offer of a caution or any mention of presecution. She took some advice from the CAB who suggested that she really ought to take the Admin fee and leave it at that, as the council would probably take it to court if she doesn't.

 

She has decided to do the above as she can then put it all behind her. She is very relieved, but also somewhat disgusted at how the council has far too much power and a system which is clearly set up to entrap anyone and everyone.

 

So, well done to the council for earning another £500 through immoral ways, I really don't know how they can sleep at night?

[Jan4a]

just subscribing - info might be useful to my parents, especially the thresholds.