Active discussions

Meet the Other Phone. A phone that grows with your child.

Meet the Other Phone.
A phone that grows with your child.

Buy now

Please or to access all these features

Talk
Chat

Join the discussion and chat with other Mumsnetters about everyday life, relationships and parenting.

Original poster

Is this benefit fraud?

262 replies

Gingerangel · 06/12/2022 15:57

Just found out a friend of mine who is about to come into a large sum of money is intending to hide this money in a relatives bank account and not declare it to the DWP and have her relative just give her the cash as and when she asks for it. She’s doing this to hide it from the benefits people…

I was worried about her and told her that I think she might get into trouble doing this however she’s insisting on going ahead with this and thinks the DWP won’t notice anything is amiss. Is this benefit fraud? Can she get into trouble? And has anyone else done something like this and got away with it?

OP posts:
VivX · 06/12/2022 22:19

"It's hard to imagine a financial transaction with more of a papertrail and with more people involved who all have a professional obligation to report money laundering."

[sigh]

XenoBitch · 06/12/2022 22:26

Of course it is fraud, and if she is caught then she will be in a lot of trouble.
Saying that, I can not blame people for wanting to hide sums of money from DWP.
I know of someone who inherited £50k and never informed DWP. They would have had their benefits stopped (they are unable to work), and then have to justify every purchase with it until they could claim again. No nice holidays etc. Just practical things. What a miserable way to live.

I myself had someone offer me a sum of money (which they inherited), and I turned it down as it would have affected my benefits. Instead, if I need something big, then they just buy it for me. By big, I mean vets bills, new fridge etc. Not cars and not holidays.

uncomfortablydumb53 · 06/12/2022 22:37

Sounds like she's already committed benefit fraud to get a council house!
Everything is traceable now, and she's playing with fire

Interested in this thread?

Then you might like threads about this subject:

Benefits
Happyher · 06/12/2022 22:41

AlwaysFullOfQuestions22 · 06/12/2022 19:24

Yes fraud but they'll never know if its not in het account.
My sibling has done this b4.

You think?? They do data matching between different govt departments and financial institutions.. If her names on that house sale it will be held by various data holders - only a matter of time before it gets matched.

hellycat · 06/12/2022 23:05

Did your friend leave her husband and apply for council housing while he remained in the matrimonial home? I can think of some scenarios in which case selling would not have been an option - that the house wouldn't fetch anything if sold, was either in negative equity or very little and they had to wait for market conditions to improve, or pay more off, that he could not afford to buy her out, that he was unreasonable and there had to be a lengthy legal battle to get him to agree to a sale. The OP's friend would not have been prevented from obtaining a council tenancy esp if kids were involved. Some men refuse to budge from the marital home - they take the attitude, it's my home, I've paid the lion's share of the mortgage, take the kids and eff off - yes, there are men like that.

Crumpleton · 06/12/2022 23:19

Unless the marital home had only your friends Ex DH's name on the deeds there's going to be a fair bit of paperwork to sign during the selling period from both parties.
Saying this as someone who last year, still married to DH sold a house...
Paperwork seemed endless.

Trez1510 · 06/12/2022 23:25

The only thing that could make this 'cunning plan' any more ludicrous is if the ex plans to move in with her and she doesn't report that, or she's already got an unreported cocklodger - tenancy breach etc. etc. etc.

Original poster
Gingerangel · 06/12/2022 23:32

hellycat · 06/12/2022 23:05

Did your friend leave her husband and apply for council housing while he remained in the matrimonial home? I can think of some scenarios in which case selling would not have been an option - that the house wouldn't fetch anything if sold, was either in negative equity or very little and they had to wait for market conditions to improve, or pay more off, that he could not afford to buy her out, that he was unreasonable and there had to be a lengthy legal battle to get him to agree to a sale. The OP's friend would not have been prevented from obtaining a council tenancy esp if kids were involved. Some men refuse to budge from the marital home - they take the attitude, it's my home, I've paid the lion's share of the mortgage, take the kids and eff off - yes, there are men like that.

They both decided they would sell the house, I think neither wanted to stay in the property long term anyway. She left first and got a council house with the 2 children and started claiming benefits as a single parent. It’s taken some time to actually get round to getting the ball rolling with selling up though.

OP posts:
OhBeAFineGuyKissMe · 07/12/2022 07:10

The part I don’t understand is why she isn’t using the money to buy another property? If the owned the house outright, in a nice area, half of that could either buy a smaller property or be a hefty deposit.

By putting it into cash savings:
the value of the money will decreases as interest rates are no where near inflation.
she will spend the money on cash purchases - so it will gradually fritter away with very little to show for it.
she risks a hefty fine/ pay back of previous claims and a criminal sentence for fraud, which could affect her future job prospects.

Goodgrief82 · 07/12/2022 07:23

Very odd that you know it would seem pretty much every detail of her finances and personal situation

And… you don’t actually know the amount we are talking about here because you “don’t want to pry”

I find it very hard to believe… she hasn’t told you, given she’s told you everything else

susiesuelou · 07/12/2022 08:20

Very odd that you know it would seem pretty much every detail of her finances and personal situation

I did think this myself.....

GUARDIAN1 · 07/12/2022 08:31

Msloverlover · 06/12/2022 18:08

She’s happy to stay in a council house, although she will have half of the outright sale of a house in a good area (so presumably oils buy a house in a not so nice area pretty much outright). FFS. She needs to get on mumsnet and read the posts that desperate women are writing about their rent increases and really think hard about her choices. She is 100% not a struggling single mum.

I agree with this. Generally speaking, I reckon benefit fraud is rare compared with those who are genuinely in need. The people who tend to get identified aren't usually people with £1000s at their disposal, but those who do a little 'cash in hand' work to supplement benefits that are inadequate for anyone to live on more than in the very short term. I would be fuming if I was genuinely struggling while someone like this had ££££s to draw on whenever they wanted it. Presumably, she would get her brother to pay for 'big ticket' items, like maybe a luxury holiday somewhere. I probably wouldn't report them myself, but if I was their friend I'd certainly tell them what I thought of it.

New posts on this thread. Refresh page