I have a client who had £15220.03 savings in 2004. In 2006 she no longer had those savings but Income Support are now deducting £37 from her Income Support every week.

We have appealed the decision based on the fact that the client did not intentionally deprive herself of the savings in that she did not know the rules relating to savings and Income Support, and because she has been suffering long term mental health problems.

I phoned Income Support to ask them to stop deducting the £37 while we were appealing the decision and they said they could not. Does anyone know if there is any Legislation or any Commissioners decision stating that benefit should not be deducted while an appeal is ongoing.

Beverley
LSC Caseworker
Welfare Rights Unit

Your post doesn't make it clear when the original claim was made -

The upper capital limit for Income Support in 2004/2005, 2005/2006 was £6000, and didn't change to £16000 until 2006/2007.

If she was receiving I/S before 2006 then it would appear that she hadn't declared all of her capital?
If however she didn't claim I/S until the new capital rule was introduced in 2006, how is it that they are now saying that she had the capital prior to the claim?.

Assuming she didn't claim I/S until 2006, There is possibly an arguement here that one cannot be said to be depriving ones self of capital with the intention of obtaining benefit, if you would have had no entitlement to benefit in the first place. (For at least the first six months after the capital rules changed, the majority of (new or repeat) claimants we assisted still thought it was £6000).

However, a lot would depend on the time span over which the capital was disposed of, how and what on. If it suddenly went down markedly in say the few months before a claim for I/S was made, it would appear, in some peoples eyes, to a deliberate disposal.

On the recovery angle - ask them what regulations allow them to recover at such an extortionate rate....

My client was originally in receipt of IS until 2003 when she inherited £50,000 she informed IS of this and came off benefits altogether and started work for a short period of time in 2004, but had to give up due to work related health problems.

She lived off the inheritance until 12th August 2006 when she made a new claim for IS. When she made this claim she had no savings left and became aware of the £37 a week deduction because her IS had been reduced by this amount on the assumption that she had over £15,000 left of the inheritance even though she has provided bank statements to the contrary.

By the way thanks for your reply.

Bev.

I would guess this isn't an overpayment recovery, just an application of the tarrif income rules to notional capital. £37pw implies that they are treating the claimant as still possessing the whole £15,220. In which case, that's the decision. It remains effective until overturned on appeal or review. There is no provision obliging the DWP to hold off from implementing a decision, other than an overpayment recovery, pending an appeal.

Richard Atkinson

Yes that I thought that was the case, I just got some wrong information that the £37 can be suspended while an appeal goes through. I could not find any Legislation to that affect.

Still not sure why they are treating her as having the £15,000 because she did live off her inheritance for over 3 years, a couple of her children got married and she bought a car to get around with so surely that was not a deprivation of income and is legitimate spending.

If a person is working and they have got savings and x amount of years later the savings run out how can the DWP tell someone when they have been working and not claiming any benefits how much money they can spend over a period of time.

Thanks

Bev.