DWP Funeral Payment

[Shaun123]

Hi

Please can you help me, my mum passed away in July. I could not afford funeral costs, received a payment from social fund. Have recently received a letter requesting repayment, I'm so worried that they will force me to sale our house, have always lived with my mum.

 

I am in the process of applying for probate, its taken sometime to get things sorted haven't felt like doing very much, not coping very well. There are so many issues I'm concerned about,receiving ESA at the moment, there was a shortfall in the funeral cost,the funeral home have been kind allowed me to pay installment, won't take long to clear.

 

It's been very difficult time have no family or friends that I would feel comfortable talking to about these concerns. I 'm willing to repay the full amount to dwp, was considering offering to pay regular installments, increasing the amounts when I'm working again, not sure if that would be acceptable.

 

hope someone can help

 

Thanks

 

Shaun

[Mr.P]

Who owns the house ?

 

If it was in your mother's name within the last seven years, the DWP could instruct that the house is to be sold. However, you have a vested interest in the property, and it is likely that a forced sale would make you homeless - On this basis, it is unlikely that the DWP would force through a sale to recover a small amount (compared to the value of a typical house).

 

If repayment in full is not an option, then by all means attempt to negotiate with the DWP to repay in affordable installments - Do it in writing so that you have a paper trail and file away the letters in a safe place.

[Shaun123]

Thanks, yes the house is in my mum's name. I have made a probate application, it's been quite a protracted process

[honeybee13]

Hello Shaun, welcome to CAG.

 

You've come to the right place for advice and support, we'll help as much as we can.

 

My best, HB

[Shaun123]

I'm very worried about if they will take my home, I always lived with my mum. I received a payment £1250 from dwp, when I spoke with the adviser, was concerned about this and she assured me that they wouldn't sale my home. I'm very willing to repay the loan in installments, receiving ESA at the moment, would increase payments once I'm working again. I just don't know if they will agree to this.

[goodatresearch]

I'm sure they'd let you pay it off in installments. Can you work out how much you can afford and offer them that?

[Mr.P]

I'm very worried about if they will take my home, I always lived with my mum.

 

It is highly unlikely that the DWP would force you to sell your home just to settle a debt of £1250. Unlike other creditors, the DWP can take repayments out of benefits currently paid to you or even wait until you start claiming a pension (statute of limitations does not apply to government debts). In the grand scheme of things, £1250 is a paltry sum of money and they wouldn't make you homeless over it - Doing so would end up costing the taxpayer a lot more to rehome you. Offering £10 per week (assuming you could afford it), the debt would be paid off in 2½ years - Legal action to force a sale could take quite a bit longer and lumber them with considerable legal costs.

 

Negotiate an affordable repayment plan, make sure you get it in writing, and keep a record of all payments. After the last payment is made, get written conformation that the debt is settled, and file the letter away somewhere safe.

 

What ever you do, do not take out a payday or bank loan to settle this debt !

[goodatresearch]

Statute of limitations does apply to the social fund. However that only means that if statute barred they can't take court action. They can however, as explained by Mr.P, take money from present or future benefits and state pension.

 

However, this is not statute barred but I still wouldn't worry, although I understand its easy for me to say. Put everything in writing and offer a monthly or weekly payment you can afford. If you want to agree something over the phone that's OK, but make sure you confirm the details of any verbal agreement in writing so there is a paper trail for eg, "during my phone call with your representative......., it was agreed that I could pay £..... Per week month...." Or words to that effect.

[Mr.P]

Statute of limitations does apply to the social fund. However that only means that if statute barred they can't take court action. They can however, as explained by Mr.P, take money from present or future benefits and state pension.

 

Thanks for clarifying what I should have said - My excuse: way past bed time.