My daughter is under investigation for fraud with universal credit. Can anyone help?

[Est1974]

My daughter went to uni last year, realised it wasn’t the right course and dropped out by the end of October to reapply for this year. I’d paid into a child trust fund her whole life that she closed to pay her living expenses to top up the loan - about 7.5k in total. She signed on when she got back and started looking for work. She declared the money appropriately and her uc was trimmed in line with it being over 6k. She got a couple of uc payments. She then got a Christmas shop job that lasted 6 weeks. Uc stopped during this period. I charged a little bit for food but she saved the rest and declared it properly each month. She applied for hundreds of jobs but didn’t get one until the May. She lived like a hermit, saved the uc and declared it every month as her savings went up. The May to September job paid really well and she saved almost all of it. She got no uc during either of the periods of paid employment. She was awarded two scholarships for women in engineering for her new university course. She is now in the new uni with a little war chest of nearly 18k.

Universal Credit are now gunning for her and want 12 months worth of bank statements and are accusing her of fraud. She got no money while she was working and at the time she got the second job she’d only amassed about 8k - well under the 16k limit which she declared properly at every stage and the uc she received between January and may went down accordingly as she saved it. The jump from 8-14 was during her summer job during which she wasn’t claiming and the other 4k is from the women in engineering scholarships. She wasn’t claiming while she got these earnings.

Shes on her own at uni in her first week, full of freshers flu and petrified. What will happen?

Sounds like she's fine, she needs to tell them exactly what you've said here and she'll be able to show proof of when all the money landed. Really well done to her for getting herself in such a great position and hope this doesn't knock her confidence too much.

You need a lawyer

Why? Can't she just show them the bank statements as they've asked?

Yes but it’s always sensible to get legal advice especially if her daughter is this scared. £100 with an expert to calm her down is immeasurable if it helps her enjoy uni and not worry

Was she still somehow logged as a student? As students can’t claim UC in most cases. However it sounds like she has done everything right and can prove as such. As a PP said, speak to a solicitor but they can’t prove something that’s false

So just do as they ask, provide the bank statements to evidence her claims and declarations were correct, and they'll close the case. Simples. It's bread and butter work for them.

She just needs to produce what they are requesting which will show where the money came from and how it built up.

CAB might also help you if you speak to them

She doesn't need a lawyer. She just needs to send the bank statements and attend her phonecall and explain eveything.

If its all above board she will be fine.

Theres a great group on facebook called 'universal credit credit support and benefit guidance UK ' and they will help determine if she did eveything correctly.

I had to provide all sorts of statements and documents after getting a loan whilst on UC and they were really helpful and it was sorted out very quickly.

How are they accusing here of fraud? I doubt they would accuse anyone of fraud without evidence. They just want to see her bank statements.

I have explained my reasoning. The girl has 18k in savings. Hearing a lawyer say ‘you haven’t committed a crime chill’ is more calming than being anxious about it for months

Universal Credit are now gunning for her and want 12 months worth of bank statements and are accusing her of fraud.

That's very emotive language. They have just made a request for bank statements. What's the problem with that?

I would speak to [CAB] Citizens Advice Bureau

Just supply the bank statements.

The issue is the 18k in the bank... they need to trace when she received the money and where it comes from.

If she saved her UC and didn't use it, I would argue she didn't need it for living costs. Therfore she needs to pay it back, that's obviously the worst case scenario.

It doesn't sound like she's done anything wrong so it should all resolve. She just needs to do as they request and explain it like you have done here. I don't know why it's gone to fraud, maybe her bank balance triggered it or maybe someone reported her wrongly.

Thank you for the replies - I’m as a middle aged person sure it’ll all come out in the wash eventually but as a 19 year old on her own she’s frightened and I’d like to reassure her and help her clear it up as quickly as possible. Initially they asked for 3 months statements but now they’re after 12 as that didn’t show what she needed to demonstrate. The first letter was fairly benign but the tone of the second one is quite stern.

It sounds like she's always been honest and always kept them informed so it should resolve fine but horrible for a young person. It does reduce between 6k and 16k for savings but as she told them it's definitely not fraud and sounds like they adjusted it anyway.

Even if you think you have done everything right, an honest person will worry they made an inadvertent mistake or they misunderstood something. I would send them the documents but I may well get a solicitor/lawyer involved as well, all my dealings with UC/housing/other governmental agencies are that they aren't massively competent and often go for easy targets, and that honest nice people can get disproportionately stressed by this. Help her get togther the bank statements and don't accept what they say as 'the truth', sometimes it is, sometimes it isn't and if there's any further comeback I'd definitely retain a lawyer.

Well done her. Britain is set up to prevent movement between classes. Anyone on either side is programmed for it. Good luck to her for her, hopefully very positive, future

£100 ?! 😂😂😂
Every law firm i know and have used charge an absolute minimum on £350 p/h and thats usually plus vat as well!

It doesnt sound like they're 'accusing her of fraud', it just sounds like they are doing a review and asking for bank statements which they're doing with thousands of people who claim UC. It's usually 3 months of statements, but sounds like due to her savings they're asking for a bit further back just to check it's all OK and above board. If it's all as you said above then it should be fine and they will close the review once they've checked it all.

which lawyers are you using?! Mine charges £160 to come to appts with me?!

They are investigating, like they do for loads of people. Try to get your daughter not to worry, sounds like she's done everything right. Just hand over the information needed and then all should be ok.

There are very few solicitors who understand the benefits system.
Just supply the information requested, maybe with written explanations just as you did above.
If UC were to take it further and investigate for actual fraud there would be an official interview under caution.
Get help from CAB or another Advice centre. The university may be able to signpost your daughter to one at that point. For now, just get her to supply information and evidence, as requested.

She will be fine if she has declared everything correctly!
Understand that the investigation process feels intimidating and like a lot of hoops to jump through though.
Once, I had unintentionally not declared some money a relative had lent me in a bank account, not realising about the savings limit thing (actual earnings were low and no personal savings) which I am now understandably having to pay back bit by bit, but it was a genuine mistake and there was no criminal investigation for fraud or anything so I wouldn't worry too much about all that side of things.