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Capital built up due to not spending benefit due to mental health issues
Some similarities to the post below about not spending DLA, but I think this merits a separate thread as there is a serious mental health factor.
Client has income consisting of MC/LM DLA, IR-ESA (support group), CB and CTC (one child). All her benefits get paid into a PO card a/c.
Her a/c balance has been building up since about 2008 when she changed from order books to the PO card a/c. Until I obtained duplicate statements I assumed that her balance must be increasing so fast because of duplication of payment or some such official error but have found that, in 2010 for example, her income was £15,969 but she only withdrew £2,960. She has always struggled financially and relied on the charity of friends and relatives in the mistaken belief that she is far worse off than she is. As a result it has now reached the stage where she is shocked to discover that her a/c balance is c.£29,000
She has *severe* mental health issues, leading a pretty chaotic life, and this has caused her to never look at her quarterly a/c statements, and also never to notice the a/c balance on her transaction slips on the rare occasions she actually draws money out. She genuinely had, until now, no understanding of her income, let alone the level of her a/c balance. Since changing to a card a/c her circumstances have changed several times- she was formerly on JSA and did not get DLA. She has also had two long and drawn out ESA appeals in the past couple of years.
The DWP has discovered the “capital” and is pulling her in this week for an interview under caution. This itself seems heavy handed - they know about her MH issues as they have notified her support worker. She is convinced that she is going to prison. Can anyone make an informed guess as to the line that may be taken? Clearly Income related ESA (unfortunately the whole lot, not just a top-up) will stop. I think it would be incredibly harsh for any overpayment deemed recoverable to be actually recovered given all the circumstances.