Housing benefit - they want £1,000 returned

[Notquitegrownup]

Posting on behalf of a friend who is employed in low paid work, has health problems and no savings - housing benefit have just told her that they have miscalculated her payments and want £1,000 back.

Any advice I can offer her? I presume that she can negotiate instalments rather than a lump sum payment?

Thanks you

She can definitely pay in installments but must contact them in writing asap. She needs to offer what she can afford but no more for example if she knows she can afford £10 a week but may stretch to £15 some weeks then she must only offer the £10 and can always pay more if she's got spare to get it paid off quicker. They're usually very good about it if she sticks to the agreed amount and pays regularly. She can also pay monthly if she gets paid monthly.

Most of all tell her not to stress over this. I know it's difficult not to get worked up but she must remember they can't take what she hasn't got. Tell her to contact them by phone too to let them know a letter is on it's way but all correspondence must be in writing for them and her and she needs to keep a copy of letters she sends and receives. Libraries do photocopies for around 10p.

Hope she's alright it must be an awful situation to be in. She's lucky to have a friend like you though, I hope she values you!

They usually reduce the current HB paid to go towards the overpayment - she needs to give them a ring and discuss how much this will be.

Thank you. I'm not that much of a good friend - it's v. easy for me, just to post. She has had to cope with so much in life. Ho hum.

(Do you know, if I send her a little cheque to help tide her over this bad patch will it have to count as income for her and affect her benefits. Is there a limit to cash gifts you can receive? Thanks)

I would've thought that it wouldn't affect things if it's deemed a loan. Even if you said to her pay it back at 1p a year, it's still a loan. That way I'm sure it's not an income and the amount wouldn't matter. After all the social do loans (crisis or budgeting I think) and it doesn't affect benefits so I would've thought that the same rules would apply. If you want to be 100% sure though ring the benefits advice line and ask anonymously or the CAB (Citizens Advice Bureau).

Hope that helps. She's very lucky to have a friend help her like you are doing. I wish I had that sometimes but all my friendships seem to involve me giving and them receiving (not just financial but everything)!

Aw, thank you for posting Mummywith. You sound low. Times are very hard at the moment for a lot of folks, I know - and I know what you mean about sometimes feeling that you do all the giving - in fact I felt very much the same as you do, when my boys were small. Since they have both gone to full time schooling, and I have rediscovered a bit of independence, life has been a lot easier. Tough job, this mummying stuff, isn't it?

No I'm not low just a little fed up with having one way friendships. For example I have very bad health and have been much worse than normal over the past few weeks. As I haven't been able to run around after my friends they've not been in contact, apart from once to say when your better come round to my house and we can go out for the day in your car! I wouldn't mind but said friend has a car but she never comes to my house I always have to drive the 30 mins to her. When I had my ds I had an emcs so couldn't drive for 6 weeks she called me to say she can't wait to see baby when I take him to her house!!!!!!! Arrrgggghhhh
Like I said I'm not sad but I guess I am jealous