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.

It's sad you have flouted paying your council tax for years because you made a mistake. Instead of being adult amd dealing with it by calling the council to try and help you, you want sympathy by strangers by giving a sob story about how apparently ignorant you are of the council's savings amount rules.

Grow up. If you cannot handle someone disagreeing with you because of your actions, then maybe surround yourself with like minded stupid people.

Good luck with your debt!! Lol

Definitely get support from a welfare rights organisation to help you confirm the amount owed. It will be complex as it's over several years, and it's almost certain the council will calculate too high. It will be complicated by your self-employed status as well. The National Autistic Society used to have benefits support, but I don't know if it still exists. You really need a welfare rights specialist to calculate it - a debt organisation may not have the expertise.

One thing that will make a difference is that things like benefit payments only count as capital after the period it is paid for. For example if you get PIP every 4 weeks, it only counts as capital after the 4 week period is up. So if the amount you have in your accounts fluctuates over the month they can't simply add up the total amount in it. Also, certain arrears of benefits get disregarded for a year (eg PIP back payments if you have needed to appeal).

We have a complex benefits system and that keeps advice services like Citizens Advice very busy helping people navigate it. So the op situation is far from unique. It is scary being in debt regardless of if you have savings available. It is scary having a family to support and variable income from self employment so if you can have a buffer to manage those variations that is a positive thing. The benefits system recognises that people on a low income should not be excluded from claiming benefits while having some savings!

It is disheartening reading all the sour posts from people obsessed with denying benefits to people with small savings pots. Get. A. Life.

The answer would be to keep the cash in a sock under the bed ( only half joking).

Maybe I will contact my MP, when I get home from work, which is full time, and due to health issues I’d love to be part time but financially can’t afford to so I will carry on and make sure I pay my council tax while I’m at it 👍

contact your local citizens advice centre. They can advise you. DWP/Council will have to calculate your overpayment which can be complex. CAB will check its correct. Usually if you offer a reasonable amount for a regular repayment they will accept this. Don’t offer an amount that will leave you in hardship

how long have you been over 6k?

Hi @Littlespiderseverywhere.

It sounds like you’ve worked so hard and been so frugal. Try not to worry. You’re worried and anxious because you don’t know how much you owe or how you’ll be expected to pay it back. So, you’re naturally catastraphising. They’re very likely to accept a repayment plan that’s manageable for your household. Your vehicle is OK right now.

It’s vital you get urgent debt and benefits advice to get this sorted, so you know what you’re dealing with, feel more in control and have support from someone who understands the system and your options.

• Make an appointment at your local CAB, even if it’s for months in advance.

• Try National Debt Line.

• Try Step Change: https://www.stepchange.org/debt-info/council-tax-arrears.aspx

• Try Turn2Us: https://advicefinder.turn2us.org.uk/

• Try your local councillor or MP’s advice surgery. That’s what they’re there for. To help hard-working constituents like you.

You’ve got this. It’s only a blip. It can be sorted out. Things are improving for you. The kids are getting older. Believe in yourself. You can do this ❤️

I agree too!

Agreed. And the comment about being self employed and your van potentially breaking down so needing the savings for that???

What do you think the rest of us do?! You can't claim benefits as a buffer in case you don't get as much work one month or your car needs repairs!

Why did you post this?

Are you aware of the concept that if you can’t say anything kind, say nothing?

Almost every thread on here is women asking for advice and support with worries. If you don’t like that, why are you here?

Thank you for this. I don't recall an annual renewal form. I did have to fill in a s/e accounts form annually for HB, who would then inform CT(the council would not accept a tax return so I had to do my accounts all over again for the council 🙄 ) but I'm pretty damn sure that there were no questions about savings on it. Pensions yes, property I remember, nothing about savings.

Your Council may have a benefits advisory team. Ours was called Welfare Rights when I worked for a LA. If they do, they would be able to advise you and quite possibly work with you and council tax to set up a payment plan.

The irony that you're posting like that whilst working part time and being supported by being given UC..
That likely means you will have a higher income than OP too, if you haven't managed to save that's due to you not being as careful with money.
OP would have still had ~5.5k savings as the cut off is 6k so she would have paid the reduced amount again each time she went below 6k. She has paid her bill, just not realised a decade after looking at the application that she needed to update them on savings.

@Littlespiderseverywhere yes. CAB does help SE people 🥰

Irony? There's no irony. The money I earn fluctuates monthly so I may get a top up to being my earnings to what the government deems is liveable.

I pay full council tax and I don't stop paying my bill because my brain has convinced itself I have the right to not pay it and save money for me and my loved ones.

My money is used for what it's intended for.

Neither do I have to send a sleepless night in panic mode looking for any excuse to get out of paying a debt I created and then reach to strangers for reassurance I am not a moron.

I haven't flouted my local council authority by bending the rules to suit my own means so I can have some savings.

It's nor realy worked out well foe your little friend thiugh has it? She has had a sleepless night, Googled like a maniac, worrying about how SHE will be affected by using up her savings that quite frankly, belongs to the local council.

You're both CFs.

You’re absolutely right. But you must know by now that to speak about the feeling of injustice surrounding any aspect at all of the UKs welfare system on Mumsnet will be met with cries of fury from the Be Kind Brigade and will be deemed as a person who hopes that newborn babies, the disabled and elderly starve to death.

Thank you. The minute I told their automated chatbot I was s/e a message flashed up really quickly: "Sorry, I can't help you- here are some links"- and then disappeared before I had time to write them down! 😆

Sounds like I need to persevere and try and talk to a human, no matter how long it takes.

I’m not sure CAB will be the best people to talk to. It’ll be the council.

Theoretically they will accept a payment plan - they have to; if you’ve got no other way to pay. But you’ll have to send them statements and if you can afford to pay it with your statements, they may well request that it’s paid back in full. You’ll have the opportunity to fill in an expenses form and show how much you can afford to pay; and on that, you can include a “reaonable” amount that you want to keep in savings, but reasonable is going to be debatable. I’d be tempted to aim high, and then have them negotiate down…

Theyre probably not going to accept £150 a month forever, for example; if you’ve got £7k sitting around, but they may well accept £1.5k a month for three months, if that helps you. It’s hard to work out if it will without figures.

Please try not to worry too much though. It’ll work out. Council tax is a nightmare

Not to worry, ring the council and speak to them.
if you have savings of £6,000 then it’s not going to leave you penniless unable to buy food or pay your rent. Use the savings to pay what you owe.
But in future all money in all your bank accounts even PayPal counts towards savings and what you have. I’m not sure how you didn’t know what you have in your current account didn’t count towards but everyone makes mistakes.
You can request a payment plan but if you have nearly 6k or above or whatever it’s likely they’ll want the payment in full or near full.

It's hardly bullying.

What SHOULD be a reality isn't for a lot of people. Even people working full time and have multiple wages incoming interest household can struggle to keep things ticking over.

Entitlement to not pay bills at the expense of others for selfish reasons is no excuse.

Do you think I like paying council tax? I could do so much more with that and save too like the OP did !

When I returned to work my council was calculated for the remainder of the tax year and I had to pay a lot more than what it actually is so I didn't accrue a debt in the new tax year. Do you think I enjoyed that? Do you think I wouldn't rather have a lovely little neet egg for my family's future?

The truth is if you can't afford to pay day to day living expenses then what the heck right does anyone have to pug rhat money away for a luxury future?

Priorities. Life doesn't always go as we hope in an ideal world. Bills need to be paid. Much of the time there's little left but that's a reality for many households.

i find it incredulous that people are claiming benefits but managing to save 7k at the same time. aren’t benefits just the amount people need to live and for those who are in absolute need?

Deleted. Sorry posted on wrong thread.

Well yes, you'll have to ring them. Come on, OP.