"Official Errors Arrears of £5000 or more" Oh no!

NoOne

I try to manage my money. It's alway seen going over £6000 as a thing I NEVER want to do because of having to deal with people (no) and money (no) and whatever it (no) entails.

But I just came home to a Brown Envelop that had this bombshell inside. DWP have said they owe me this error arrears (just over £5000) and it's in my bank account within 5 working days (letter 2nd Class too) and "You should inform housing benefit of these arrears and of the Severe Diability Premium award". It's the new Disability Premuim Award that's doing this being backdated to 2023.

So many questions as this is a totally unknown thing for me and I've no one to ask.

This will put me over £6000 in savings but it's not my fault. How will this affect my ability to spend? I've something that I thought I would never be able to afford, currently just over £2,000…but if I bought it before the £5000+ lands I won't go* over £6000 in savings (*need to go to ATM to check balance first). If I spend my money under £6000 nobody could complain right? If I don't buy that, do I have to explain how my savings come back under £6000 in the future ("No Mr C you can't spend £2300 on that…your on benefits and now you want more housing benefit because of that!")? Why do Housing benefit need to know about the Severe Disability Premium itself? Currently a bit stunned! I'll post this now as I'm shocked! WTH!

poppy123456

I don't think this is treated as an official error so it's not disregarded for the life of your claim. However, all backdated money is disregarded for 1 year so it's not counted in with the capital you already have. You do not need to report it to your local Authority either. Just keep the letter to be on the safe side, if they do ask, which is unlikely.

For this reason you can spend it on anything you want to and this also includes all the rest of your money.

The reason you've been advised to report it is because in some cases it can increase your housing benefit but as you're already claiming a means tested benefit then you should already be receiving your maximum housing benefit entitlement anyway.

NoOne

https://forum.scope.org.uk/discussion/comment/962786#Comment_962786

Oh Poppy Dear! I'm not sure exactly what all your words mean but I get the gist of it and that is I have one year to do as I please with this money? What an absolute relief!!! I thought there might be a 'let off' period but I thought it would be like 3 months with associated 'why did you spend £XX at Halfords Mr C???".

Kimi87

Yes it is a 12 month disregard 😊

NoOne

https://forum.scope.org.uk/discussion/comment/962839#Comment_962839

The more the corobboration the lower my stress! Thank you! I could hug you both!

NoOne

Oh I'm coming back because I think this is an error. An Official error.

I was sent forms out the blue that I finally filled in for Severe Disability Premium last year. I got the notice I was eligible for SDP from Early 2023 and I got a back payment. I thought that was it, all done. It looks like the backpayment I was given was from Mid 2024 to Oct 2024, and not from Early 2023. Somehow they have discovered (I didn't tell them because I didn't realise) they didn't pay me from Early 2023 to Mid 2024 and that is what they are back paying me now. That's been an error, right?

poppy123456

No, it'a not an official error because SDP is not automatically paid. The disregard is for 12 months.

Catherine21

I had the same spent on what I liked