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Deprivation of capital
- Steven
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6 years 4 months ago #203561 by Steven
Deprivation of capital was created by Steven
I was wondering how this is repaid? What do you re pay if they say you spent money
For eg if you had money left to you after a death say taking your savings from under 6k to 10k but you used all that you saved to pay loans or mortgage.
My question is if you only had the money for a few days what would they make you pay back? Is it worked out as only been over for a week and charge you £1 for every £250 extra you had over that time or is it worked out as they want all the extra you had paid to them? I haven’t got a clue on about this and when I’ve tried to help them find out there’s nothing that helps tell you how it’s worked out and what you pay.
As there money only went over for a few days would that cost less then if had the same amount but in the bank for a year before spending it? How does it work.
Thank you
For eg if you had money left to you after a death say taking your savings from under 6k to 10k but you used all that you saved to pay loans or mortgage.
My question is if you only had the money for a few days what would they make you pay back? Is it worked out as only been over for a week and charge you £1 for every £250 extra you had over that time or is it worked out as they want all the extra you had paid to them? I haven’t got a clue on about this and when I’ve tried to help them find out there’s nothing that helps tell you how it’s worked out and what you pay.
As there money only went over for a few days would that cost less then if had the same amount but in the bank for a year before spending it? How does it work.
Thank you
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- Gordon
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6 years 4 months ago #203565 by Gordon
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Replied by Gordon on topic Deprivation of capital
Steven
I can't give an exact statement of how it will be done but it will be something along the lines of the following.
The whole point of Derivation of Capital is that the DWP do not consider the expenditure of the money is acceptable, so they will class you as still being in possession of the £10,000 from the date that you received it until today.
The following is based on your having received the inheritance a year ago.
So the first thing will be to recover any overpayment of your benefit, this could be done a lump sum but is more likely to be done via a reduction in your current payments. Having £10,000 means that you are £4000 in excess of the £6000 so if you received the money a year ago then the overpayment would be £832 (£4000 / £250 = 16 x 52 = £832).
Your existing benefit will have a further £16 deducted each week.
Now you may have reasonably reduced the £10,000 over the last year so the above figures may be less.
Gordon
I can't give an exact statement of how it will be done but it will be something along the lines of the following.
The whole point of Derivation of Capital is that the DWP do not consider the expenditure of the money is acceptable, so they will class you as still being in possession of the £10,000 from the date that you received it until today.
The following is based on your having received the inheritance a year ago.
So the first thing will be to recover any overpayment of your benefit, this could be done a lump sum but is more likely to be done via a reduction in your current payments. Having £10,000 means that you are £4000 in excess of the £6000 so if you received the money a year ago then the overpayment would be £832 (£4000 / £250 = 16 x 52 = £832).
Your existing benefit will have a further £16 deducted each week.
Now you may have reasonably reduced the £10,000 over the last year so the above figures may be less.
Gordon
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- Steven
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6 years 4 months ago #203574 by Steven
Replied by Steven on topic Deprivation of capital
Thank you for that explanation it still all sounds very complicated.
How about tho if the money you had saved was just under the 6k but after getting the extra it was all put into the mortgage within days of the money becoming available. Therefore going from
10–15k down to say 1 or 2? Just because paying off a mortgage is a debt and the extra money you got just goes to that saving you from struggling with longer intrest rates etc.
Basically what if the money is received and Spent on debt in just few days leaving you almost with no savings?
How about tho if the money you had saved was just under the 6k but after getting the extra it was all put into the mortgage within days of the money becoming available. Therefore going from
10–15k down to say 1 or 2? Just because paying off a mortgage is a debt and the extra money you got just goes to that saving you from struggling with longer intrest rates etc.
Basically what if the money is received and Spent on debt in just few days leaving you almost with no savings?
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- Gordon
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6 years 4 months ago #203576 by Gordon
Nothing on this board constitutes legal advice - always consult a professional about specific problems
Replied by Gordon on topic Deprivation of capital
Steve
I'm afraid you are missing the key point, it's not whether you have had the money for one day or one year, you disposal of it has been treated by the DWP as being unreasonable and you are therefore considered as still having ownership of it.
Whilst there are exceptions, it is a general rule that the early payment of a debt is treated as Derivation, you can try appealing the Decision to treat it as such but I think you will struggle to overturn it.
Gordon
I'm afraid you are missing the key point, it's not whether you have had the money for one day or one year, you disposal of it has been treated by the DWP as being unreasonable and you are therefore considered as still having ownership of it.
Whilst there are exceptions, it is a general rule that the early payment of a debt is treated as Derivation, you can try appealing the Decision to treat it as such but I think you will struggle to overturn it.
Gordon
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- Steven
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6 years 4 months ago #203580 by Steven
Replied by Steven on topic Deprivation of capital
I understand they treat it as if you still have it but i mean how is it worked out how long they treat it like that for? As if it’s spent and gone i don’t understand what they would want? Do they want all the money you received until they get all the extra monies you had. I know it’s charged £1 per week for ever £250 But if you had 15k after a death and paid it all to a mortgage leaving you with nothing how much would they make you pay? 9k as that is what you had over there limit? I just don’t get the time scale and amount they want as you don’t have it so they can’t charge you the £1 pw until you spend it So how long do they decide you would be classed as having money you don’t have? And is it just £1 pw for each £250 or would they want all the inheritance for them?
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- Gordon
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6 years 4 months ago #203590 by Gordon
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Replied by Gordon on topic Deprivation of capital
Steven
So there will be an over payment to repay and reduced benefit until you have reasonably reduced your savings below the £6000 limit again. The obvious issue is that you no longer have the money to spend so that it is likely to increase the time that it will take.
The figures would be along the lines that I illustrated in my previous post.
How long? As long as it takes
Gordon
So there will be an over payment to repay and reduced benefit until you have reasonably reduced your savings below the £6000 limit again. The obvious issue is that you no longer have the money to spend so that it is likely to increase the time that it will take.
The figures would be along the lines that I illustrated in my previous post.
How long? As long as it takes
Gordon
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