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Owns house but sofa surfs… capital?
Could do with some guidance on this one as mainly deal with disability benefits…
Clt on income-based JSA. Has mortgaged property, but decides to let out house and sofa surf with friends (not enough money to keep mortgage going). DM discovers clt has moved and makes decsion to effect that Clt breaches the £16k limit. O/P recovery letter follows for several thousand pounds. However, in Feb 12 DM revises the decision to only take account of the equity (£13K) and applies tarrif deductions to JSA, reducing it by £28 a week.
Clt is not proposing to dispose of the property and none of the other temporary disregards seem to apply.
Looking at the regs and reference books I can’t see where it allows only the equity to be taken into account. Does anyone know any different?