Failure to report increase in savings

SpitfireFord
SpitfireFord Online Community Member Posts: 4 Listener
edited April 2023 in Universal Credit (UC)
What are the likely implications for someone that has failed to update DWP about their savings increasing over the past 4 years?

Savings are now above £16k. DWP were notified last week and further payment’s have been suspended.

This was a honest mistake by someone unaware what they needed to report monthly that they hadn’t spent their entire benefits.

The individual hasn’t received any additional income. They simply haven’t spent their full benefits payment every month and their savings have built up in addition to savings interest being paid.

There are have £4k of additional savings than DWP were aware of.

The individual had contacted DWP themselves to advise they were now over the £16k limit.

Comments

  • poppy123456
    poppy123456 Online Community Member Posts: 64,456 Championing
    They will need to pay back any money that's been over paid. As they didn't report the savings there will likely be a small fine on top of the any overpayment, which i believe is about £50. The good thing is that they've now told them their savings are above the maximum amount.

    Once their savings go below £16,000 they can reclaim but there will be a deduction for every £250 or part there of over £6,000. Is it Universal Credit they are claiming? If so do they have any debt that needs to be off? Paying off debt is allowed when claiming UC and will not be seen as deprivation of capital. The rules for other means tested benefits are different.

    If they are also claiming council tax reduction then they'll need to report the changes to their local authority. Some local Authorities have a maximum savings limit of £6,000 rather than £16,000.
  • SpitfireFord
    SpitfireFord Online Community Member Posts: 4 Listener
    poppy123456 said:
    They will need to pay back any money that's been over paid. As they didn't report the savings there will likely be a small fine on top of the any overpayment, which i believe is about £50. The good thing is that they've now told them their savings are above the maximum amount.

    Once their savings go below £16,000 they can reclaim but there will be a deduction for every £250 or part there of over £6,000. Is it Universal Credit they are claiming? If so do they have any debt that needs to be off? Paying off debt is allowed when claiming UC and will not be seen as deprivation of capital. The rules for other means tested benefits are different.

    If they are also claiming council tax reduction then they'll need to report the changes to their local authority. Some local Authorities have a maximum savings limit of £6,000 rather than £16,000.
    Yes they are claiming UC with LCW. Unfortunately they have no debts to repay.

    The council has been informed of the changes. They have a maximum savings limit of £16k but make deductions for any savings between £6k-£16k.

    Is there any way of calculating the amount that will need to be repaid? They have no issues repaying what’s owed but are worried how much it will be.

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