I may owe thousands in council tax arrears and I feel sick

[Littlespiderseverywhere]

So. I recently switched to UC from tax credits, and I declared my savings to them- about £7700. I knew that the limit for savings on tax credits was £16000, and on UC it's tapered from £6000.

I was also on housing benefit, and council tax benefit. I had made my initial claim for these about 15 years ago when I first moved into a house with baby DS1, and was very poor with no savings at all. Since then the only change of circumstances I had had to report to the council was moving house once.

The council have just emailed me and told me that DWP have informed them that my savings are over £6000, which is their cut off for council tax benefit. I had no bloody idea of this. I must have been told- or asked to declare any savings- 15 years ago when I first applied, but at the time I had nothing, and have no recollection of this.

My savings have been close to or over £6000 for 5-6 years!! I have always lived very frugally through fear of ending up without money again- for me, having an emergency nest egg has been top priority.

I'm so anxious and upset (hence posting at this time of night!). I'm autistic too, and I can feel the worry pushing me towards the edge of not being able to cope.

The council want to see all my bank statements for years back, and I intend to fully comply ASAP. But- as far as I can calculate- I think I will owe them about £6-7000.

Do you think I will be able to offer them a lump sum from my savings- say £3000- and set up a payment plan for the rest? I'm self employed and am not quite even hitting the minimum income floor for the hours I'm working (20 hours p/w- I have a fit note which doesn't really seem to be needed yet because I'm still on transitional protection).

I feel sick with anxiety that I could lose all the savings I've carefully scrimped and saved to build up. What if the car breaks down tomorrow?? I realise that I have only been functioning well all these years because I have been able to live within parameters of my own creation regarding hours worked and having enough money for mine and the kids' modest needs, and I'm terrified of the effect on the DC if I'm unable to remain stable and functioning for them.

Yeah I am autistic like OP is too. Finding out we have somehow not been following the rules is awful. And then finding out we might be penalised for it too.
This thread has have several people accuse OP of "flaunting" not paying for council tax etc.
For years, I paid the full rate. Not even for a single person. Then I had the single person discount but paid the full rate for years at great cost when I was meant to have CT support. I am on CT support now but could not get a a penny back for all that time.

Yeah, that sucks!!

Some people just have no clue about Autism (;or much else!) ignore them of pity them, they're not worth getting upset over!

they're dim to think she was 'flaunting' 🙇🏻‍♀️🙇🏻‍♀️

That’s great. Fingers crossed for wed @Littlespiderseverywhere

If you’d known, you could’ve kept your savings under £6,000 and actively benefited from any money you had above that.
Disgusting policies that allow no leeway for mistakes like yours, and disgusting that anyone would enforce them so they can have the money that you worked hard to save.
You’ll probably have to pay it, but hex them when you do