Faced with benefit fraud prosecutio

[aldiboronti]

Here's the situation.

 

I'm a 65 year old male living with my 56 year old partner.

 

We have a 17 year old daughter.

 

I've just had a letter to attend an interview under caution.

 

My partner inherited about £40,000 from her father in July.

We both lead practically separate lives now and although I live in the same house a

nd claim for us I don't have much to do with anybody,

keeping myself to myself and rarely going out.

(I have diabetes, heart problems and depression).

 

I didn't see much of the money although she did buy me a new laptop.

 

the money was frittered away in the space of about two months, mostly on debt and huge mortgage arrears.

There's nothing left now.

 

The thing is I stupidly didn't declare it and as the claim is in my name I should have done.

 

I kept meaning to but I'm terrible for putting things off.

 

I realized that the DWP must have known about the inheritance.

No attempt was made to hide the money.

I don't have a bank account but it sat openly in my partner's account while it lasted.

 

Now I have to attend this interview and I'm pretty scared.

 

How likely am I to face jail time?

 

It's the government statements on cracking down hard on fraud that terrify me.

I can't believe I've been so stupid.

I know a forum can't solve my problems but it helps a little just to talk about it.

[antone]

Could you clarify which benefit you receive? Is it State Pension Credit?

[aldiboronti]

The benefits concerned would be Pension Credit, although Council Tax and Child Tax Credits would be involved too I expect.

[jabba jones]

Could you clarify which benefit you receive? Is it State Pension Credit?

 

It will be another case from the Pension Credit capital match scan I mentioned in another thread recently.

 

They will have copies of all the relevant bank statements & the combined overpayment should be at least £2000 because FIS only deal with cases that are potentially prosecutable nowadays.

[45002]

Here's the situation.

 

I'm a 65 year old male living with my 56 year old partner.

 

We have a 17 year old daughter.

 

I've just had a letter to attend an interview under caution.

 

My partner inherited about £40,000 from her father in July.

We both lead practically separate lives now and although I live in the same house a

nd claim for us I don't have much to do with anybody,

keeping myself to myself and rarely going out.

(I have diabetes, heart problems and depression).

 

I didn't see much of the money although she did buy me a new laptop.

 

the money was frittered away in the space of about two months, mostly on debt and huge mortgage arrears.

There's nothing left now.

The thing is I stupidly didn't declare it and as the claim is in my name I should have done.

 

I kept meaning to but I'm terrible for putting things off.

 

I realized that the DWP must have known about the inheritance.

No attempt was made to hide the money.

I don't have a bank account but it sat openly in my partner's account while it lasted.

 

Now I have to attend this interview and I'm pretty scared.

 

How likely am I to face jail time?

 

It's the government statements on cracking down hard on fraud that terrify me.

I can't believe I've been so stupid.

I know a forum can't solve my problems but it helps a little just to talk about it.

The benefits concerned would be Pension Credit, although Council Tax and Child Tax Credits would be involved too I expect.

 

Surly you should know Exactly what benefits you and your partner where claiming,living in the same house together !

Edited September 20, 2013 by 45002

[antone]

Well, my first thought is that you're not likely to face jail time. I'm presuming the overpayment in question is not vast, and that your claim was not fraudulent from the outset (in other words, your partner received the money after you first claimed benefits).

 

Second thought is that it would be a good idea to seek some advice from a solicitor experienced in benefit matters. Even if you intend to admit the offence and show remorse, legal help is still useful.

 

From the point of view of SPC, you can calculate the overpayment like this: the first £10,000 of the money is ignored. After that, £1 per week is deducted from your entitlement for every £500 in savings. So for each week that the £40,000 was in the bank, you would work out:

 

• First £10,000 ignored, leaving £30,000
  
• £30,000 divided by £500 is £60.
  
• So your benefit should have been reduced by £60 per week for all the time your partner had the money
  

[aldiboronti]

Thank you so much for the replies. I have contacted a solicitor and she will see me on Tuesday and accompany me to the interview next Friday. Yes, everything was quite above board with the claim until my partner received the inheritance and I neglected to report it. I tend to neglect everything these days. I've checked the period concerned and it's a bit longer than I thought, about 4 months in all. Calculating by your guide above it looks to be about £1000 Pension Credit overpayment. Adding to that (as I'm sure they will) would be the Council Tax relief overpayment, the Child Tax Credits overpayment and Child Benefit. On the same reckoning that's probably an additional few hundred pounds. Maybe, overestimating for safety, a total of £2000 for the 4 months.

 

BTW will the DWP go after my partner too or will they rest content with my scalp?

[kk3852]

BTW will the DWP go after my partner too or will they rest content with my scalp?

 

Depends what you say to be frank - if you accept that you were aware of the inheritance and that you knew that it would have affected your joint claim then probably not. It is your claim and therefore your responsibility to notify any changes in circumstances.

 

If you try to say that you didn't know anything about the inheritance that your partner received then they will have no option but to speak to her - there are specific offences of knowingly allowing a person to claim incorrectly

[estellyn]

a few points.

 

If council tax relief is passported by pension credit (if it is at your council), then if you still had even a little bit of pension credit after the deduction due to capital, then your council tax relief wouldn't be affected.

 

Paying mortgage arrears is a reasonable thing to do with savings, if you can show they were arrears, then from the date of payment of the arrears you shouldn't be counted as still being in possession of that part of the capital. But be aware that 'deprivation of capital' rules may have an effect on your ongoing benefit entitlement - this is where you can be treated as still having the money if the DWP think that it was 'got rid of' for the money in order to be able to continue claiming benefit. You can appeal a deprivation of capital decision, and ask that the 'diminishing capital rule' be applied (where the amount you would have had to spend to make up the gap in your pension credit is deducted from the capital).

 

If you don't mind me asking, how much was the mortgage arrears? Did you spend the money on anything 'essential', if so what did you spend it on and how much?

[aldiboronti]

About £7000 was spent on mortgage arrears and £4000 on other debts (utilities, etc). Ironically we learned recently that although DWP has, with our permission, been stopping £22 weekly from our benefit for over 18 months for gas arrears the gas company hasn't seen a penny of it! I don't know what's going on there.

 

As for the rest of the money my partner spent it very quickly. It might as well have been thrown away. A few examples: £3500 on a holiday for my partner, my daughter and two friends. Money and holiday lost because my partner didn't get her passport in time. Another attempt, this time £2000 on a week in the Caribbean. Money and holiday lost because my daughter didn't get back in time to get the taxi to the airport. (A third attempt for the two of them did work out, £2000 for that one.) My partner bought me a laptop, a new pair of boots and an easy chair. That's not a dig, it's all I wanted. Because of my illness I have little interest in anything now.

 

I'll be glad if I bear the brunt alone. My daughter (who has many issues) needs her mum far more than she needs me.

[estellyn]

Well, priority debts (mortgage and utilities) are a reasonable expense, so if they were paid as soon as you got the money, that amount should not be taken into account from then.

 

So that would get you down to approx. £40 a week that should have been deducted (if they accept the debts as essential to be paid) - do you receive more than that in pension credit? If so there should be no issues with your council tax reduction

 

regarding the interview under caution, be honest, be apologetic, explain your mental health issues that cause you difficulty dealing with things. If it's too difficult to explain, have a written statement prepared that can be read into evidence. There should be no effect on your partner, it's your claim, your responsibility as far as the DWP see it.

 

Given your circumstances and the amount involved, I doubt there would be a prosecution, maybe just a caution and/or a financial penalty.