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Worried about accidental UC fraud

35 replies

FeliceIntheTwenties · 11/07/2024 16:59

I've been on UC for 3 years. I'm a single parent and I work. I've just received some inheritance so immediately used my online UC journal to inform them of my change of circumstances. I have now been told to come in to the job centre and bring 3 months of bank statements.

I've had a hell of a year and have not always been "on it." I recalled that my mother had sent money at the end of May because she has also inherited and has surplus. It was a large enough sum to push me over the £16k threshold. I absolutely should have told UC then but I didn't. This was partly because I knew a big chunk would be for paying off my credit card (which I still have not done as it in interest-free period) and another chunk was for booking a holiday (we haven't been able to afford one for years). The rest was to give to my children who do not yet have their own bank accounts.

On receipt of the money in May I immediately applied to open accounts for the children but have yet to sit down and log on the internet banking and transfer their money. The upshot is that I was over the £16k limit for about 6 weeks or 1 UC payment.

I'm now really really worried that I will end up with a criminal record for this and lose my job. What will they do? I've told them what happened now re not declaring the money received in May as most was for the children. I've kist been told I must wait for this meeting in 2 weeks to verify my capital.

To avoid drip-feeding, I've now scouted my bank statements for the last few years and they was a 10 day period last year when I went over the £16k as my father transferred some money to me temporarily. I'm really worried.

OP posts:
ChittyChittyBoomBoom · 11/07/2024 17:15

I did some extra work last year. I informed them immediately, supplying all the information they needed but they didn’t adjust my uc payments. They contacted me last month so it’s taken them a year to finally catch up with it and they’re now taking it out of my payments until it’s corrected. Im
sure it will be similar for you if you owe them anything.

PhilosophicalCheeseSandwich · 11/07/2024 17:19

What have you done with the money your mum gave you? If you didn't use it for the things you meant to, then presumably it's still sitting somewhere keeping you over the threshold.

FeliceIntheTwenties · 11/07/2024 17:22

Yes I'm over the 16k threshold which is I why I have tried to close my claim. The obey is now in savings. Before May I had less than 6k sort from
A very brief period last year when I was loaned money by my dad to pay off debt.

OP posts:
Nonametonight · 11/07/2024 17:22

You will have an overpayment which you'll have to pay back. They will probably also charge you a £50 civil penalty for each time you went over £16k and didn't tell them

They will be scrutinising what you do with the capital. If you give it to your children or spend it on a holiday, they are likely to consider that deprivation of capital. That means they will calculate future UC payments as if you still had that capital that you spend on the holiday or gave to the children.

It isn't only money over 16k you have to declare, it is any capital over £6k. Did you spend at least £10k of the £16k from your dad in one month? If so, they'll be looking at what that went on and whether it's legitimate spending. If you didn't spend it down to below £6k they will be looking at multiple assessment periods and making deductions so you will have a big overpayment to pay back.

If you are asked to an interview under caution, you should try to get a criminal law solicitor to accompany you.

FeliceIntheTwenties · 11/07/2024 17:25

Sorry for typos. I'm in a hurry heading out.

OP posts:
Lifestooshort71 · 11/07/2024 17:29

I've told them what happened now re not declaring the money received in May as most was for the children.
But it wasn't, you said it was mainly to pay off your credit card and pay for a holiday. Sit down and make sure what you tell them matches your bank statements.

FeliceIntheTwenties · 11/07/2024 17:35

It was mostly for the children. I have had it for 6 weeks. Do I really need a criminal lawyer?

OP posts:
Houseplanter · 11/07/2024 17:43

You say you've just received an inheritance and immediately informed them, then go on to say it was May.

Suggest you get your story straight

FeliceIntheTwenties · 11/07/2024 17:48

Does anyone with knowledge of this sort of thing think it's likely I will be prosecuted? I'm sick with worry about it.

OP posts:
Nonametonight · 11/07/2024 17:55

If DWP intend to try for a prosecution the first step would be an interview under caution, so that's the point at which you would need a lawyer.

Do you have any evidence at the time your mum gave you the money that it was for your children? The DWP tend to be quite suspicious when people who have capital they haven't declared then try to claim it was for their children.

Doseofreality · 11/07/2024 17:58

Would you have been “on it” if UC owed you money?

OneFrenchEgg · 11/07/2024 18:07

Houseplanter · 11/07/2024 17:43

You say you've just received an inheritance and immediately informed them, then go on to say it was May.

Suggest you get your story straight

No two lots, her mum gave her some £££ and she's now also received hers , I think

BobbyBiscuits · 11/07/2024 18:09

I think they might make you pay back all the UC you received from the moment you went over 16k to now. As they'll assume that your claim should have automatically terminated once the threshold was reached, and you be expected to make a whole new claim once the 16k had gone back below 6k. I am not sure though.

bombaybicycle · 11/07/2024 18:10

'Accident'

NecessaryNC24 · 11/07/2024 18:13

ChittyChittyBoomBoom · 11/07/2024 17:15

I did some extra work last year. I informed them immediately, supplying all the information they needed but they didn’t adjust my uc payments. They contacted me last month so it’s taken them a year to finally catch up with it and they’re now taking it out of my payments until it’s corrected. Im
sure it will be similar for you if you owe them anything.

Do you mind if I ask, shouldn't your extra work have gone through HMRC therefore taken into account UC-wise?

Houseplanter · 11/07/2024 18:14

OP my apologies if I have misunderstood..

However I still don't see a valid excuse for this and you should indeed have to pay back every penny, and justify what you spent the money on.

yumyum33 · 11/07/2024 18:15

I'm getting deja vu with your post. Have you talked about this before? It's very familiar.

QueenCamilla · 11/07/2024 18:45

If it was "for the children" then the money should have gone from the benefactor, your mum or solicitor straight to their accounts. You can't just hold money for someone else. Also, spending on holiday or paying off credit cards is still not a get out clause from declaring the money - your financial circumstances were bettered by receiving it.

At first my ExH and then a solicitor held my portion of proceeds from the sale of the former family home. I applied for the permission from the DWP to buy a house to live in with the money (I was renting after being homeless at that point). I had to show an intent to buy a property suitable to mine and DCs needs (2 bedrooms allowed). All and any excess money after the property purchase, would be counted as savings and UC adjusted or the claim stopped accordingly. A meeting was held by the DWP to decide on my case. I was allowed to have the money in my account for 3 months to buy a house. And for that purpose only. When I bought (at auction) I had to supply the property particulars and the purchase price via the Estate Agent. Then the final purchase amount plus fees, was disregarded from my cash capital for UC purposes.
Obviously, I lost the housing component money of my UC immediately upon buying the house.

So there are processes to go through when you inherit, and you didn't abide by them. With the recent changes, the random checking of bank statements can often happen, so I'd be very hesitant not to report changes in circumstances.

In the future - ask your mum/dad to pay off your debt rather than send you large sums of cash.

dothehokeycokey · 11/07/2024 18:49

Not saying you op but so many people are panicking right now because of the clamp down which means they are fully aware they have been claiming when they shouldn't be.

It takes minutes to log in and change circumstances and I'm sure had they not paid your uc one month you would have been on the phone as soon as possible to sort it out.

Accidental or not I don't think they will listen to any reasons. That's not their job
Their job is to claw back any credits paid out when they shouldn't have been.

Noosnom · 11/07/2024 18:51

I worry about accidentally going over the 6k limit al the time. I might be given 2k soon to pay for DC's car insurance straight away (in and out of bank in 24hrs). I hope it doesn't mess things up.

They need to raise the savings limit in line with inflation. It should be 8k and 21k now.

QueenCamilla · 11/07/2024 18:56

@Noosnom
Does it have to go through your account?
Does your son not own a bank account?

I'm sure in/out won't mess things up but if there is another way, I'd rather not risk it.

Noosnom · 11/07/2024 19:09

Oh, good point queen 🤦‍♀️. Yes, he does.

WithACatLikeTread · 11/07/2024 19:21

Being honest UC are going to be as sceptical of your explanation as we are.

Miley1967 · 11/07/2024 19:32

FeliceIntheTwenties · 11/07/2024 17:35

It was mostly for the children. I have had it for 6 weeks. Do I really need a criminal lawyer?

You can't just give the money away. As per the post upthread that would be considered deprivation of capital. If you wanted the money to go to your kids then your mum should have put it directly into accounts for them instead of it hitting your bank account.

Cornflakelover · 11/07/2024 19:35

It’s 4.50 deducted for every 250 over 6000- 16k so it’s not a huge amount and a possibly a 50 civil penalty

OP
head over to Reddit DWP / Benefit section
they have actual DWP / Universal
credit moderators who work for the DWP/ UC

they are incredibly helpful non judgmental and can often work out what you will have to repay

Your absolutely allowed to have gifts from family and friends and it’s not taken into account as earnings

it’s capital they are generally looking for over 6k -16k
plus it’s what you have in capital in the UC award period so the 28 day period you get UC is what they assess any capital on

its easily done as people often think it’s a straight 16k
and not between 6k -16 k

your also allowed to pay of debt providing you can prove you have paid off debt like a credit card statement