How are savings actually checked when applying for benefits?

[LittleBeluga]

Despite being on a very low income, my household has never been eligible for benefits due to savings. Due to the increasing cost of living, our savings are now rapidly depleting and we will need to apply soon. But how will they check what we've got in savings? Surely years ago I could have just said we had nothing and they'd never know? Just pondering really, does anyone know how it works?

DWP cannot access your bank account unless they suspect fraud, so they don't (and cannot) check your account routinely. Initially they take what you declare on the forms as the truth, unless they have information otherwise.

They may ask for bank statements now though, they didn't years ago.

I was asked for a full year's bank statements once a few years ago.

Universal credit asks for bank statements from all banks.

But surely you could have £50k stashed away in another account?

Also the other day I was reading about how someone's benefit payments kept getting messed up due to her savings fluctuating around the cutoff mark. I don't see how they'd know, for it to be a problem! People were suggesting withdrawing it all and keeping it under the bed - again, how would the DWP know that they now had no savings left? I suppose I am worried about things being complicated as we are now around the savings cutoff too.

When I applied for help with council tax I had to tell them details of all accounts I held and take up to date statements showing balances. My local council were extremely thorough going through everything. However, when I applied for UC they just took my word for it and I didn't have to show any proof. I think the risk someone would take if they lied about how much or little they had would be that they could do a spot check at any time, although I assume they'd only do this if someone reported possible benefit fraud. Not that I'm suggesting you are going to lie!

They can and do ask for bank statements & can request any paperwork relevant to savings, investments or property. If your savings are less than £16k though OP, it's worth checking if you are eligible. What benefits would be relevant to your circumstances do you think?

We'd be entitled to Universal Credit - household income is £25k for 2 adults and 2 toddlers. We had about £40k in savings before the DC but now it's nearer £15k.

I suppose I could have not been honest about which accounts I have. Also, I could have had thousands stashed under the bed (if only!).

Definitely worth applying by the sounds of it if it's under £16k. Don't delay if you do though as they won't backdate UC unlike ESA etc. There's online tools to put your details in if you want to double check.

I guess most people don't want to take the risk of being prosecuted for fraud if they were caught out.

Your savings need to be less than 6k. They dont count equity in property but if you own property you wont get any support with housing or council tax. If someone reports you then they access your bank accounts.

Universal Credit (UC): Capital/ Savings

Any capital/ savings you have under £6,000 is ignored. Any capital/ savings you have between £6,000 and £16,000 is treated as if it gives you a monthly income of £4.35 for each £250, or part of £250, regardless of whether it does or not.

I did have a telephone check for tax credits where they wanted bank account, savings and employment details. They sent me a list of what I needed to provide. I was worried but tax credits are not means tested which they told me on the phone so I did wonder why they needed so much information out of the blue.

The difficulty about "lying" about accounts is that the money has to come from somewhere and go somewhere. For instance if you transfer money from your declared account to another it will show "transfer to the XY Bank" which may prompt questions. The other aspect is "does your declared account reflect all your regular payments?". These are only examples!

@LittleBeluga

Savings of £6000-£16000 affect low income based benefits except tax credits and over that can’t claim. (different figures may apply over state pension age).

Some capital can be ignored at least for a while or longer
importantsly for example - if you can’t access it if you experience DV and partner controls any joint account .

If you are found not to declare it you risk prosecution and you have to pay back the money fraudulently obtained which will come from your savings if you are discovered to have any. I would personally be very careful. I understand how if the savings aren't a vast amount , it seems unfair that you can never really have a security blanket as well as a small amounr of assistance, so that kind of keeps you poor but imagine your position employment wise etc with a conviction.

I see what you are saying but going forward who knows what they will be able to access and how. We live in a digital age and even more so in the future so you cannot rule out someone may be discovered in the future of committing fraud historically.

I'd be very very of lying. I used to work in public sector HR/ payroll. Dwp used to occasionally cross reference staff data in fraud reducing exercises, plenty of people would get caught out for not declaring they where living with a partner and claiming benefits etc... I'm not sure they necessarily have to have an allegation, they can access personal info in the interests of 'fraud prevention'. So wouldn't sit back and thinking my savings account is off limits to them.

@LittleBeluga just make the claim now. If you’ve used those savings for normal expenditure and not disposed of it for the purpose of claiming benefits you’ll be fine.

@Mydogatemypurse the savings need to be under 16k to claim. Anything over 6k is taken into account.

You must declare all bank accounts and provide bank statements, if you have savings under 16k you can apply.

You have to provided 3 months of bank statements, for all he accounts you list when you apply for benefits

They can ask for more months

its been known for people to keep accounts secret but then its come to light further down the line as the bank statements can be asked for at any time and benefits suspended until the statements are forthcoming.

There are automated systems that share data so it will be flagged and checked if there is a UC account with savings over £16k. They will check that account and if nothing declared they will investigate. And yes if they suspect fraud they can get your bank account statements.

The banks provide interest information to HMRC.
I'm sure this would be cross referenced.

You have to keep updating it. I do it once a month. I just put the balance on my accounts once a month. They then amend what they pay you according to the balance. If your account was checked and you had spent thousands this could be deemed to be deliberately depriving yourself of assets. Is it worth the worry and stress? Just be honest. It is easier.