Help.....80 year old mother has letter for non disclosure...

[littleyellowduck]

Would appreciate any advice.

 

My mother has rung me in a complete state as she has had a letter from the local council regarding her council tax benefit.

 

They are saying that they have received info from DWP that she has accounts with two building societies, but they only hold details of one. They have asked her to produce statements etc for all capital within 28 or her council tax benefit will be stopped.

 

When she originally applied for council tax 4-5 years ago she did not mention an account she had, where we had remortgaged her home so she could have it modernised and repaired. What we did at the time was borrow £35k on a mortgage and spent about 13k doing the property up. The remainder was put into an account where the interest and capital would be used to fund the mortgage for (i calculated) about 15 years. My mother never used this account as she knew it was for the mortgage and did not consider it was savings as she had no access to it, although it is in her name. There is currently about 16k left in the account, which with her savings takes her to about 26k.

 

I now appreciate that this would prevent her getting CT benefit which she has had for the past 4 years or so. However, I understand, if she had disclosed this account and was told she had too much capital, she could have paid any amount over £16k off the mortgage, so she could still have got the CT benefit.

 

She has not been invited to an IUC, just told in the letter that if she does not produce the necessary statements etc within 28 days, her benefit will cease.

 

I am happy to visit the council with her, and she is happy to repay any overpayment. We can then pay off some of her mortgage to bring her capital under £16k.

 

What advice would you give me as my mother is very elderly and has been very upset with the letter.

 

Thanks

[scooby1001]

I think that you will find she won't be allowed to use the money to pay more on her mortgage to bring her savings under £16,000 as this would be classed as deprivation of income to claim benefit, which is a definate no no.

[littleyellowduck]

Thanks...

 

On the help the aged website, it does make reference to this, and it states that money cannot be 'given away' or spent purely to reduce the balance, but if it is being used to pay off debts then this should be allowed.

 

We did consider doing nothing as the letter states that if she does not supply the necessary documentaion within 28 her benefit will cease, and does not mention anything else, but I am not convinced they have not already 'got their sights' on her

 

I have had a long chat with my mother today, and I think we will make an appointment this week to go in and she will accept what she has done and offer to repay the money.

 

I am hoping that as she is volunteering this info, as opposed to being summoned to an IUC, and offering to repay in full imediately, and due to her age (80) and state of health, they will issue a caution and/or a fine. Total overpayment is about £3500 over 5 years.

[paulb1310]

Debts paid off have to be "urgent" demands rather than just paying them off to secure entitlement to benefit. For example if the debt was being chased through the courts.

[littleyellowduck]

OK...

 

What would be deemed reasonable expenditure?

 

For example could she replace her 15yo Boiler with a new efficient one....cost about £2500.........or what about having guttering/fascia replaced?

 

Or is their a % limit to how much capital is allowed to reduce over a year to be deemed reasonable?

 

Cheers

[antone]

OK...

 

What would be deemed reasonable expenditure?

 

For example could she replace her 15yo Boiler with a new efficient one....cost about £2500.........or what about having guttering/fascia replaced?

 

Or is their a % limit to how much capital is allowed to reduce over a year to be deemed reasonable?

 

Cheers

 

There's no definition in the law, so cases where deprivation of capital is relevant are referred to a Decision Maker. I'm not a DM, but I'd say a strong case could be made that an 80-something year old woman needs to have a house that is wind/weatherproof and has adequate heat and water.

[Zamzara]

There is case law to the effect that it is the motivation which is relevant... the motive must be to spend the money in order to increase benefit, even if it is one of several other motives.