Benefits- unintentional fraud (please help)

[User9667]

I've just realised (completely out the blew) that I have unintentially been claiming more Universal Credit than I believe I should be.

Was reading something on the news yesterday and it said about savings and UC (that you get deductions for any savings over 6k). I'm a student and have been saving for the past few years (from prev income, child maintenence and student loan). This is from me living extremely frugally in an attempt to eventually get a mortgage and to allow me to relocate/attend multiple job interviews when I get a job (travel to interviews, childcare etc).

I've been up all night terrified that I'm frauding benefits; I feel like a criminal and am extremely anxious. I don't recieve an awful lot because my student loan is taken into account, but I've worked out that I would owe around 1.5k (although hard to work out as my account fluctuates a lot).

I've also seen that if you have above 16k you're not entitled to anything. I was intending to save over this in the next year (by saving a large amoung of my grants and loan), but now I am absoutely lost on what to do. I need to re-pay the money I owe. I have this available to pay back straight away and obviously need to inform them that deductions need to be taken each month, but is this going to go against me?

There's things I've needed this year (a wardrobe as an example) and would have liked to go on a short break away with my DS. Had I of known about this deduction/cap I would have lived like a normal person and stopped being so stingey. I'm thinking next year I should just buy these things that I need and book a short break etc because I'm not going to be able to keep the savings anyway. Obviously I will still be getting deductions from the savings I do have but I suppose there is no point trying to deprive myself and let it accumilate if its just taking of more and more off what I would be entitled to? I've read up about deprivation of capital, but surely this wouldn't be seen as that as these are (IMO) very much normal expenses, I have just been choosing not to spend anything in an attempt to save.

Does anyone know what I can do?? I feel so stupid for not knowing regulations regarding savings, I've had my account way before I started thinking about saving and had absolutely no clue but its giving me extreme anxiety after finding out!!

How is it unintentional? You are asked about savings during the application process.

State benefits are a safety net designed to help people through hard times. Those with savings are expected to use them to help provide for themselves.

I suspect you've case has been reviewed and this "mistake" has come to light.

@labyrinthloafer allowed to save, yes. Allowed to claim and not declare savings, nope. Allowed to have (what we can only assume to be) close to £16k in savings and claim, yes. Allowed to go on holidays to put yourself just under that threshold so you can keep claiming, nope.

There's a reason an amount is deducted from benefits based on the amount of savings you have ...

www.google.com/amp/s/www.moneyadviceservice.org.uk/en/articles/help-to-save-explained/amp

The government actively encourages people on benefits to save!

Oh gosh. No absolutely was not aware of any deductions based on savings. I can't even remember when I made a claim but when I did I wouldn't of had savings; this is just saved from student loan etc as I said.

And as for stopping the claim, it says on UC that you can have up to 16k and, I just need to have some deducted each month so I don't need it stopped until it reaches this point I believe.

I would say that if you're able do save from your grants and loan, then you don't need UC.

No one needs to go on holiday, I can’t see that being accepted.

A holiday would be viewed as a reasonable thing to spend savings on as long as it's not completely extravagant, especially as OP has a child.

Even people who are in the 'all work related requirements' group are allowed to go away for 2 weeks in a year.

Saving for a holiday is completely normal and people on benefits are allowed to do this too.

@JaJaDingDong

I would say that if you're able do save from your grants and loan, then you don't need UC.

for you, too.

You claim benefits if ENTITLED.

Irrespective of the op's savings error/mixup/fraud master plan, people on benefits are allowed to save (within certain limits).

There's a chance they could stop your claim if they suspect fraud or just as a general fuckup. Keep copies - better safe than sorry.

No absolutely was not aware of any deductions based on savings

Why would there not be deductions for savings on a means tested benefit?

I'm not an expert but the obvious thing to do would seem to be to get in touch with them and explain the situation fully.

It's a factual situation so I'm sure they will apply whatever the rules are for paying it back. I dont quite understand how you've saved so much without notifying them but it's done now so tell them the truth

Off topic but loving your autocorrect, out of the blew, did the money come in with the wind

You're receive enough to be able to save towards a mortgage from your student loan/grants and are still entitled to UC?

That doesn't sound right.
Especially when taking into account that people have tried to claim to help them during this pandemic (after losing their jobs) to be told that, as their partner is earning/they have savings..., they're not entitled to anything.

Speak to CAB or someone at UC. Tell them everything you're receiving, how much you've got in savings and work out exactly what you need to pay back & what your new entitlement will be.

One thing I can say is don't make any large purchases out of your savings to bring it below the level. It can be seen as deprivation of capital and will put you in a worse position. Check the entitledto website.

@ActuallyItsEugene yes. I'd assume they are over the 16k limit, I am not and never have been.

Fraud is deliberate, whereas you have simply made a genuine mistake.

@User9667 but you are over the £6k minimum right?

I would echo what others are saying here. Contact DWP ASAP, be honest (dont try and lie about timescales or amounts, they often ask for evidence) and read the conditions of your benefits in the future

It's not fraud unless it's deliberate. Declare it now yourself and it's more likely to be seen as an overpayment than fraud. If they find out your situation is more tenuous.

Do you have to renew each year like you do with tax credits?

@Kassandra1 yes above the minimum so will need deductions in place.

Yes I'm assuming I'll provide all bank statements etc which is fine

I think you need specialist advice. But I wouldn't have thought a student loan would count as savings. Because it has to be paid back and it's what you need to live on. Of course if you squirelled it all away for all years and didn't spend it at all then it might be different.

Does anyone know what happens with fluctuating savings?

I don't have set amounts as my finance is paid by term then obviously I use it throughout those months which reduces my balance. Do you send in bank statements every month to declare how much you have? how does this work...

If you have the capacity to save then you don't need uc basically. It's a safety net for those who don't have other income

If you have the capacity to save then you don't need uc basically. It's a safety net for those who don't have other income

@okiedokieme

If you have the capacity to save then you don't need uc basically. It's a safety net for those who don't have other income

You are entitled to save under the terms of the scheme and as posted above even this benefits-bashing government encourage claimants to save. Why do people know so little?

OP, do you have an online UC account? I would send them a message on there so you have a record.

They will tell you what (if anything) they need you to do or provide.

Your UC is reduced in the months you have savings only.

You need to start answering a few questions if you want help. How much savings do you have. Under 6k no problem Over 16k very big problem as you shouldn't be getting any UC at all. Between the two amounts your UC will be reduced. I think savings weren't taken into account for working tax credit but are for universal credit.