AIBU? Hiding money to obtain benefits.

nanna8

They should not hand out pensions to everyone across the board. Ridiculous. I definitely agree with means tested state pensions, it is much fairer. That way those in need can get more. As to what people do with their money, its up to them and if the system is so stupid that it can't cope with rorts and cheaters well that's their problem.

Just out of interest but who do you mean by "they" nanna8?

I am waiting for an inheritance to go through mitigation. I am on benefits and could not inherit and give it away. It is called 'deprivation of assets'. As it is the benefits I get will not be affected, but my sisters will. Crazy world.

Riverwalk

When university fees were first introduced by Blair they were £1000 pa and we paid for DS1's final year.

Some years later in the course of general conversation my late friend's son, who is somewhat guileless, said oh we didn't pay because our money is offshore!

My late friend was wealthy but somehow the fees were kindly paid by Westminster Council.

Years ago now, but the parents of a dd’s friend claimed that they were divorced, in order for her to claim a full grant. Did it twice! And she lasted only one term at both universities.

The family is as dodgy as they come though, I’ve heard of all sorts over the years.

nanna8 We give extra money to the poorest pensioners, It is called Pension Credit and anyone whose income is below a cerrtain level can claim it. Yes, it is means tested.

For the most of the rest of us we pay a specific amount per week from our wage packets, topped up by contributions from employers and how much we are receivng in pension depends on our contributions. In recent years this has moved to a flat sum, but only for the years you have contributed.

Australia may have a means tested pension, we have a contribution based system. It is a choice different countries, different governments etc choose to make. At the end of the day, it is our choice.

When university fees were first introduced by Blair they were £1000 pa and we paid for DS1's final year.

Some years later in the course of general conversation my late friend's son, who is somewhat guileless, said oh we didn't pay because our money is offshore!

My late friend was wealthy but somehow the fees were kindly paid by Westminster Council.

They don't hand them out, they're not sweeties for toddlers. Our system considers them a benefit that everyone is entitled to. A universal benefit. If your system wants to means test them, fair enough. But our system doesn't. If people need more, there are other benefits.

What's a rort?

They should not hand out pensions to everyone across the board. Ridiculous. I definitely agree with means tested state pensions, it is much fairer. That way those in need can get more. As to what people do with their money, its up to them and if the system is so stupid that it can't cope with rorts and cheaters well that's their problem.

Actually I know someone who has done that. His mother, in her 90s, was the one who inherited a large sum of money from her brother. He persuaded her to transfer all her inheritance to him so that she could continue claiming benefits. By doing so, he was also making sure that he got to keep the lot and none of his brothers could get their share.

The first thing he did was buy a new car costing £40k. He also said he started paying full Council rent if you could believe him.

DH regarded him as a friend but I never like him.

DH was stopped by the police for a breath test which turned out to be negative on his way to Sainsbury once. Our elderly neighbour told DH that the police was waiting at the end of our road. This guy was the one who called the police. I believe, his reporting DH was driven by envy.

I totally agree with Doodled and Iam64 it takes a very special person to be able to report a friend or family. Easy to say you would but when it comes to the crunch it is a different matter, I have been there many times and could not report anyone, I could not live with myself.

Indeed Volver but she is claiming benefits, which most people do not do when the pass money on to their children

Well said Doodledog.

There’s something rather Stasi about the idea of ‘reporting a friend’.
I’ve always paid tax, never defrauded in fact other than child benefit, been lucky to work and not depend on benefits. Someone I know inherited a little when his mum died. His m.h and neurodiversity mean he’s lived on benefits for years. If he gives up benefits for the short period when his inheritance may mean he should, I wonder how he’d ever get them re-instated. I couldn’t report him.

I bet everyone of you have got a friend that does that but just do not tell you. The world is full of people claiming benefits illegally, some with lots of money.

Has it come to this? This is a friend of the OP, who told her something in confidence, and people are suggesting she reports it.

Whether or not I approve of my friends' behaviour, I hope they know that they can trust me not to betray them if they confide in me.

Report it. I would and have previously.
www.gov.uk/report-benefit-fraud

Georgesgran she will be caught out sooner or later,unless the money comes to her in cash. ie, she sells eggs at her garden gate or does some cleaning and colludes with her employer for everything to be be paid in cash. That also means she is not contributing NI payments so will not be entitled to some benefits, if she is injured at work.

It doesnt actually matter why she did it.
If she is claiming benefits she is committing fraud.

In my experience things are never as simple as that. There are many reasons that someone would do this. I personally wouldn’t, but am fortunate to have savings. I can see why someone who hasn’t had much money would do so. I wouldn’t judge without knowing all the facts. Perhaps her son needed the money. Perhaps she just gifted money to him as she wouldn’t otherwise have the opportunity, usually being on benefits. You can legally gift money to your kids. If she didn’t pass on his grandads inheritance, he may not ever get any inheritance as his mother is on benefits?

Georgesgran

I have a friend doing the same - but the other way round. She hides their money, so they can continue to claim benefits. She says it’s just a way to ‘screw’ this Government.

The only ones she's 'screwing' is those of us who pay our taxes and aren't claiming benefits!

GoldenAge

Sago - what your 'friend' has done is not against the law. If she has genuinely 'given' the money she inherited to her son then there's no fraud involved and provided she doesn't die within seven years of making the gift he won't have to pay tax on the amount.
However, if she has given her son the money to hide for her, with the agreement that really it's still hers to do with as she wishes (i.e. world cruise, new fox fur for the winter), then she is committing fraud and her son is aiding and abetting her and he too is guilty of a crime.
You need to be sure of the precise arrangement she has made and then if you feel she is defrauding the system you have the choice as to whether to report her or not.
Personally I hate benefit fraud but it does seem to be common. When my mother had carers (we lived together), those carers often said that they were told by the agency that she contributed financially to her care and that she was unusual in that respect. Generally the carers were visiting elderly people in social housing who didn't pay yet according to the carers, there were Mercedes, BMW or 4 x 4 vehicles in their driveways belonging to an adult (working) child and the carers themselves drew their own conclusions. It often crossed my mind that my mother's life choices (to work and save) had penalised her in her later years as people living in households where there was a lot more disposable income than in ours were effectively being funded by my mother and those like her. I did however eventually come to the view that it wasn't healthy to think that way, and opted to believe that as long as we weren't defrauding the system that was enough for me to think about.

I'm surprised that someone who knows about safeguarding would be willing to be any part of gossiping about the finances of those needing care.

GoldenAge Read my post 4 above yours.No matter how legally you give money to anyone, child or cats home. If it is believed you did it avoid care costs, they will ignore the gift, deed etc etc and include the money in your assets.

There is no way y rpund it.

Georgesgran

I have a friend doing the same - but the other way round. She hides their money, so they can continue to claim benefits. She says it’s just a way to ‘screw’ this Government.

She’s not screwing the government, she’s screwing us!

There are no precise rules about how you whittle down your money until it reaches the threshold for benefits.
Updating old white goods would probably been seen as reasonable, whereas buying a luxury car rather than a basic second hand one would not.
A Decision Maker will look at the whole picture and reach a decision.
But I know that giving money away will definitely be considered asDeprivation of assets.

commonslibrary.parliament.uk/how-savings-can-affect-benefits/

I agree MissAdventure it’s a human right to have privacy. Also, by professional Carers talking about their clients household and carering matters, they are putting their very vulnerable clients at risk. A safeguarding issue in my opinion.

Any of us could end up needing care, imagine if you can being in that position and don’t let any Carers you know get beyond their first sentence and let them know why.

We would want privacy, wouldn’t we?

In this kind of situation, it’s reasonable to buy capital items that need replacing or which you need, to bring it down to under £8k. Things like carpets, washing machine, new bed, new sofa, new television. Things you couldn’t normally afford.

Get advice from CAB about giving money to an adult child re benefits. This could also be considered reasonable.