Mum soon will be claiming universal credit while be receiving 150k from sale of house in a month time

[Jellypinkbean44]

Hi all will keep this short, my mum has put in for universal credits even though she had 20k in savings and told me she will be receiving £350 pounds a month very soon from universal credits. She has recently sold her property, and will be receiving £150k in a month or so after all the deductions etc.She has signed a declaration to say she will report any changes in circumstances, she told me she would keep quiet and take the money.Would I be unreasonable to report her.

PutyourtoponTrevor thanks will do

How old is your mum, is it definitely UC and not Pension Credit? Is she seeking work or unable to work?

For those stating she could go to prison, the level of overpayment would need to be over £3K for the DWP to consider prosecution, and even then custodial sentences are very rare.

I'm completely against what your mum is doing, but the suggestion of a custodial sentence at this stage are ridiculous.

I wont be reporting my mum, but instead going to talk to her as soon as I get hold of her.

Also could it be a contributions based benefit she is claiming, has she worked previously?

NoBaggyPants she's nearly 60 she's given up work due to many health issues, and its definitely universal credits she's claiming.

Banks automatically report direct to HMRC how much interest you are earning on your savings. HMRC does not rely on the beneficiary of that interest to report it. If your mum has her £20K savings in a savings account in her name and is earning interest on it, HMRC will probably therefore already have an idea how much she may have in savings from their knowledge of the interest income (unless the money is in an ISA). That is how HMRC keep track of whether or not you are saving enough money to go above your personal savings allowance. Regardless, she would be an idiot to make a blatantly fraudulent claim, as the chances of never being found out are very remote and the powers that be do like to press for prison sentences for benefit claimants who have clearly committed deliberate fraud.

Not sure what it is about being a mother that makes you magically immune from being reported for fraud...

(Although, as already said, a prison sentence would be v unlikely if she gets caught out very quickly, rather than claiming fraudulently for years!)

I would.

I'm always surprised at how many people on here are horrified at the idea of reporting benefit fraud. I can only assume people with the "don't grass" mindset are benefit fraudsters themselves. Why else would anyone feel so strongly about protecting thieves and fraudsters rather than the people being stolen from?!

Has she been paying NI Contributions? If so she'll be entitled to "new style" ESA, which is not means tested. Also, as already mentioned the sale proceeds from her property may be disregarded for up to six months if she is planning to buy again.

It sounds like she may have an entitlement even with savings. Have a chat with her about sorting out her legitimate entitlement.

(Walkaround is correct about data matching and HMRC. Also they'll be able to see that her last residence was owned, so they will ask questions about that.)

I used to work in a women's prison (as a midwife and psychiatric nurse) and there were a good many first offenders convicted of benefit fraud, including some elderly women who had thought that their age meant that they would not receive a custodial sentence.

Yes, I can see you’re not reporting her, I can read as it goes but I was just a little that it crossed your mind at all.

If she's buying a new house with the £150k it will be disregarded for 6 months.

OP

If your mother gave up working earlier than retirement age she may be entitled to PIP/Attendance Allowance.

Advise her to claim that instead of UC, as these benefits are not means-tested.

Jesus Christ

Is the money likely to be spent fairly soon on a new property? If she is currently just staying with family then she is technically homeless.

You say she has a number of health problems, could she be claiming disability benefits?

I’m not sure posters have a problem with grassing up fraudsters, even fraudsters who are mums but I think most people wouldn’t grass up their own mothers.

Interesting that a PP said they aren't concerned about benefit fraud because it is very small in relation to companies avoiding tax. No-one knows the level of benefit fraud. If we all ignore a friend or family member who claims fraudulently then I'm pretty sure fraud is grossly underestimated.

NoBaggyPants yes will check with her thanks

Pantsville it is her own mother! I would never report my mother. I would explain to her numerous times what could happen, and then if she still went ahead, I would presume that they would find out, and she was aware of the consequences. Christ, reporting your own mother is cold.

Roughly 300 people are given (non suspended) custodial sentences for benefit fraud each year. That's men and women, so this idea that loads of people go to prison for benefit fraud is nonsense.

PIP is for care needs, it can be claimed in addition to UC or ESA, not instead of. Attendance Allowance would not be applicable as the woman is too young.

If she is unable to work due to
Ill health she should claim New Style ESA. This is not means tested and doesn’t look at savings. She will have to hand in sick notes and go for an assessment, she would receive the benefit (if accepted at the assessment) for a minimum of 12 months. She’d get about £315 per month and it would all be above board. She may also qualify for PIP which again is not means tested.

As others have said if she receives the proceeds from a house sale and intends to buy another property then the proceeds are ignored for 6 months.

The likely hood is that she will get caught and may end up with a criminal record.

It may be that she just doesn’t know about other benefits that she can legitimately claim.

Jemima232 yes shes already getting pip

TwoBlueFish thanks will tell my mum

I'm always surprised at how many people on here are horrified at the idea of reporting benefit fraud. I can only assume people with the "don't grass" mindset are benefit fraudsters themselves. Why else would anyone feel so strongly about protecting thieves and fraudsters rather than the people being stolen from?!

This - and people always mention tax fraud by big companies. Both are wrong! Why should people working long hours subsidise people not working to live very comfortably. I don't have anywhere near that amount of savings. I think benefits should be a safety net rather than a way of life. Not sure I would be able to report my Mum, but I think you should definitely tell her that she is committing fraud. Out of interest has she ever worked?