Capital above £16K due to refund of overpaid rent and Council Tax

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  • #285035
    sibels
    Participant

    I have a case that I need help with, please.

    We recently reviewed a pensioner’s claim and found that she has capital of over £16,000.

    The claimant received a refund of around £17,000 from the local authority in 2019 for overpaid Council Tax and rent because we included Attendance Allowance in 2019 to her claim going back to 2009. The claimant said she did not spend any of it because she is disabled and unable to travel or go out much. I am not sure if we can disregard the refund for overpayment of rent and council tax indefinitely or only for 52 weeks from the receipt date.

    Can you please assist me with this case? I would be grateful for any help you can provide.

    #285047
    peterdelamothe
    Keymaster

    Firstly you need to speak to an understanding welfare rights officer. Perhaps the lady needs a new carpet? It looks very threadbare. Or some disability helps in the home? Or well anything really. This payment is not arrears of benefit more a refund. Not sure that helps. Schedule 6 …I cannot see much that will help. But someone else might have an idea?

    #285070
    Mike Hughes
    Participant

    Not unusual for pensioners with AA to accrue and then struggle to spend capital. Indeed so routine that at one point a colocation project between DWP and Tameside WRS produced an entire booklet with suggestions for older people as to what their money could be spent on.

    Such was the simultaneous problem of
    – massive underclaiming of AA and PC being rectified and then
    – screwed up by pensioners accruing capital by not having anything to spend it on, which floated them off PC.

    Beyond that, if she has the capital then she has the capital. Should be offered Tameside like advice for spending it now but…

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