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Declaring ESA arrears to local authority
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2 years 8 months ago #270283 by Invisible
Declaring ESA arrears to local authority was created by Invisible
Hello,
must I declare ESA arrears to the local council? (I am a social tenant). I sought advice several times but never got a clear answer, although I was told that the arrears should be disregarded for a year. Logically one would assume that there's no need to declare the arrears to the council. Am I correct? I have had really bad experiences with my local council, it's 10 times worse than the DWP when they do things wrong, so I try to avoid it like the plague.
Thanks!
must I declare ESA arrears to the local council? (I am a social tenant). I sought advice several times but never got a clear answer, although I was told that the arrears should be disregarded for a year. Logically one would assume that there's no need to declare the arrears to the council. Am I correct? I have had really bad experiences with my local council, it's 10 times worse than the DWP when they do things wrong, so I try to avoid it like the plague.
Thanks!
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2 years 8 months ago #270302 by Gary
Nothing on this board constitutes legal advice - always consult a professional about specific problems
Replied by Gary on topic Declaring ESA arrears to local authority
Hi SCHOPENHAUER
It would depend on how much backdate you received, and why you were paid it.
In some cases, this payment is not counted as savings for one year and will not affect your income related or means tested benefits during this time, such as HB, UC.
However, where benefits have been underpaid because of:
* an official error
* an error on point of law
Any payments over £5,000 can be disregarded for the length of the claim or until the award ends.
I know many claimants who receive a large backdate set up funeral plans. You can do what ever you want with your savings, but remember DWP could treat your spending as Notional Capital.
Deprivation of capital is when you knowingly reduce or transfer elsewhere your savings or other capital to get, or increase your award of Universal Credit, so keep receipts of anything you spend your savings on.
Gary
It would depend on how much backdate you received, and why you were paid it.
In some cases, this payment is not counted as savings for one year and will not affect your income related or means tested benefits during this time, such as HB, UC.
However, where benefits have been underpaid because of:
* an official error
* an error on point of law
Any payments over £5,000 can be disregarded for the length of the claim or until the award ends.
I know many claimants who receive a large backdate set up funeral plans. You can do what ever you want with your savings, but remember DWP could treat your spending as Notional Capital.
Deprivation of capital is when you knowingly reduce or transfer elsewhere your savings or other capital to get, or increase your award of Universal Credit, so keep receipts of anything you spend your savings on.
Gary
Nothing on this board constitutes legal advice - always consult a professional about specific problems
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2 years 8 months ago #270309 by Invisible
Replied by Invisible on topic Declaring ESA arrears to local authority
Hi Gary,
Thank you for the info. It was quite a lot more than £ 5000. My CAB had already informed me that the arrears should be disregarded, just like you wrote, i.e. for the length of the claim or until the award ends. In my CPAG book there is also added 'whichever is longer'; if I remember well this would be applied in the payments over £ 5000.
The reason why I was paid, I understood at first to be 'maladministration', however upon further research about the meaning of 'official error', I found out that this includes 'a failure to follow a procedure', which is exactly what happened to me (the decision maker who found fully in my favour mentioned exactly the failure of not following very specific procedures). Therefore I would guess I was paid because of official error, or so I would argue if needed.
Interesting that you mention funeral plans, because I did send several thousands of pounds to my sisters abroad, to pay for my father's funeral. He is 77 and as one old philosopher wrote about himself: 'it can't be too far now'. My sisters could not possibly pay for said funeral, so it seemed natural for me to step in. I sent them £ 7000. This was before I myself learned about notional capital. After learning about it, I asked my sisters to avoid using the money if possible, until the whole thing will be cleared up in about 12 months, but that at least £ 3000-4000 they will keep for our father's funeral, whatever the DWP decides. My sisters even had told me in the beginning to not send the money, thinking I was depriving myself; it took quite a lot of convincing for them to accept, they try to hide their own troubles from me). This is just to say that it's not a case of them being greedy or anything like that.
Now that I know more about notional capital, my guess is that the DWP won't accept the payment I made too easily (I always expect these things to be harder than I wish for), so I will prepare my arguments, i.e. that at most only about £ 3000 should be considered notional capital, the rest if for my father's funeral and it seems reasonable to me, since it's not the case that the money were being used for something trivial or unnecessary. I don't care about what happens to me after I am dead: I have already thought long and hard about death, for years. For all I care, after I die, my body can be tossed in the fields and feed the crows and even the worms, I have no problem with that at all. But my father's funeral is different, and I also do if for the rest of my family, since funerals are really done more for the living, than for the dead, although it seems reasonable to want to honour someone's memory in these fanciful ways, etc. As if the dead can witness it all and be pleased with it. But I digress....
I researched the costs for a funeral and it seems to be in the region of £ 4500-5000, therefore I'd argue that the notional capital would be about £ 2000, since it doesn't seem unreasonable for me for someone to want to pay for their father's funeral. Of course, while I was at it, I wanted to help my sisters too: they helped me in the past, many times, so again from my point of view I didn't do anything unreasonable.
Actually, now that you mentioned funerals, you gave me an idea: I'll argue that instead of my funeral, I am paying for someone else's. From a financial point of view, nothing changes.
I have bought myself some things I needed, such as a computer and a tablet: all used stuff, and old technology. I have respect for the money I was given, and am fully aware that it didn't grow on trees. So I think I have good arguments against the DWP, when the time to use them will come.
In my CPAG book there's also mentioned that for under pension age (such as in my case) even paying debts could be classed as having notional capital (which I found surprising), for example if one pays a debt that was not called for some time. I had started paying all my many debts but after reading the above, I stopped immediately.
Sorry for being long winded, and thank you for your replies. Of course, I'll follow your advice about receipts etc, in fact I have started keeping a journal just for this money. Thank you and I wish you all a good day.
Thank you for the info. It was quite a lot more than £ 5000. My CAB had already informed me that the arrears should be disregarded, just like you wrote, i.e. for the length of the claim or until the award ends. In my CPAG book there is also added 'whichever is longer'; if I remember well this would be applied in the payments over £ 5000.
The reason why I was paid, I understood at first to be 'maladministration', however upon further research about the meaning of 'official error', I found out that this includes 'a failure to follow a procedure', which is exactly what happened to me (the decision maker who found fully in my favour mentioned exactly the failure of not following very specific procedures). Therefore I would guess I was paid because of official error, or so I would argue if needed.
Interesting that you mention funeral plans, because I did send several thousands of pounds to my sisters abroad, to pay for my father's funeral. He is 77 and as one old philosopher wrote about himself: 'it can't be too far now'. My sisters could not possibly pay for said funeral, so it seemed natural for me to step in. I sent them £ 7000. This was before I myself learned about notional capital. After learning about it, I asked my sisters to avoid using the money if possible, until the whole thing will be cleared up in about 12 months, but that at least £ 3000-4000 they will keep for our father's funeral, whatever the DWP decides. My sisters even had told me in the beginning to not send the money, thinking I was depriving myself; it took quite a lot of convincing for them to accept, they try to hide their own troubles from me). This is just to say that it's not a case of them being greedy or anything like that.
Now that I know more about notional capital, my guess is that the DWP won't accept the payment I made too easily (I always expect these things to be harder than I wish for), so I will prepare my arguments, i.e. that at most only about £ 3000 should be considered notional capital, the rest if for my father's funeral and it seems reasonable to me, since it's not the case that the money were being used for something trivial or unnecessary. I don't care about what happens to me after I am dead: I have already thought long and hard about death, for years. For all I care, after I die, my body can be tossed in the fields and feed the crows and even the worms, I have no problem with that at all. But my father's funeral is different, and I also do if for the rest of my family, since funerals are really done more for the living, than for the dead, although it seems reasonable to want to honour someone's memory in these fanciful ways, etc. As if the dead can witness it all and be pleased with it. But I digress....
I researched the costs for a funeral and it seems to be in the region of £ 4500-5000, therefore I'd argue that the notional capital would be about £ 2000, since it doesn't seem unreasonable for me for someone to want to pay for their father's funeral. Of course, while I was at it, I wanted to help my sisters too: they helped me in the past, many times, so again from my point of view I didn't do anything unreasonable.
Actually, now that you mentioned funerals, you gave me an idea: I'll argue that instead of my funeral, I am paying for someone else's. From a financial point of view, nothing changes.
I have bought myself some things I needed, such as a computer and a tablet: all used stuff, and old technology. I have respect for the money I was given, and am fully aware that it didn't grow on trees. So I think I have good arguments against the DWP, when the time to use them will come.
In my CPAG book there's also mentioned that for under pension age (such as in my case) even paying debts could be classed as having notional capital (which I found surprising), for example if one pays a debt that was not called for some time. I had started paying all my many debts but after reading the above, I stopped immediately.
Sorry for being long winded, and thank you for your replies. Of course, I'll follow your advice about receipts etc, in fact I have started keeping a journal just for this money. Thank you and I wish you all a good day.
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2 years 8 months ago #270342 by Gary
Nothing on this board constitutes legal advice - always consult a professional about specific problems
Replied by Gary on topic Declaring ESA arrears to local authority
Hi Schopenhauer
I would not over think things, I came across a claimant a few years ago who sent his family over £8K as their home had been wiped out in a hurricane, this was accepted. He did keep a record of what he used his money for.
Gary
I would not over think things, I came across a claimant a few years ago who sent his family over £8K as their home had been wiped out in a hurricane, this was accepted. He did keep a record of what he used his money for.
Gary
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2 years 8 months ago #270579 by Angel
Replied by Angel on topic Declaring ESA arrears to local authority
Hi. When I received by DWP backpay several years ago, I didn’t inform anyone. I know I am legally covered if any issues arise. I have checked this out scrupulously. You are also covered if you get moved to UC and again to Pension Credit. Sometimes being ‘totally honest’ just brings more drama. As the amount is ‘allowed’ you are under no obligation to declare it (in my book anyway).
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2 years 8 months ago #270605 by Gordon
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Replied by Gordon on topic Declaring ESA arrears to local authority
Angel
I'm sorry but this is incorrect!
Claimants have a legal responsibility to inform the DWP and other authorities of any change that can affect their claim.
Also, only the relevant authority can Decide that an "amount" is allowed, certainly not the claimant.
Lastly, permanent disregards only last for the life of the claim during which they paid, so not for a Natural migration to UC and certainly not Pension Credits, I'd have to check for a Managed UC migration.
Gordon
I'm sorry but this is incorrect!
Claimants have a legal responsibility to inform the DWP and other authorities of any change that can affect their claim.
Also, only the relevant authority can Decide that an "amount" is allowed, certainly not the claimant.
Lastly, permanent disregards only last for the life of the claim during which they paid, so not for a Natural migration to UC and certainly not Pension Credits, I'd have to check for a Managed UC migration.
Gordon
Nothing on this board constitutes legal advice - always consult a professional about specific problems
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