Claiming benefits with too much money in the bank?

[textbook]

A friend transferred some money out of his bank account to an etrade account as he thinks he will lose his job in a couple of months, and wanted less than £6,000 in the account, but worries that housing benefit and DWP will do data matching or go into his accounts and see the transaction and then look into the etrade account (which isn't trading at the moment). Will they notice the money being sent out, do they monitor transactions three months before and do data matching? Does the DWP employ credit reference agencies who pick up on these transactions and etrade accounts?

 

 

He's thinking of closing this bank account and opening another one in another bank. To stop this transaction being fund for £6,000 out of account. Obviously, he will get contribution based benefits after working for four years.

[GrumpyToSayTheLeast]

So this is a post asking how to screw the system essentially?

 

A better question would be how much can someone have in savings without it affecting their benefits??

[antone]

Yeah, we can give factual information here but we're not going to advise anyone on how to commit fraud.

 

So, first off - if he's entitled to contribution based JSA, his savings will not affect his entitlement. Of course, if he needs JSA for longer than the 26 week JSA© period, he would need to claim income based JSA, which would be affected. For reference, JSA(IB) is reduced by £1 per week for every £250 (or part thereof) in savings that he has over £6000. If he has £16,000 or more, he will not be entitled to JSA(IB).

 

It would be extremely unwise for him to attempt to hide the money from the DWP.

[estellyn]

He's required to disclose ALL accounts regardless of where they are and all money he may have. What you are suggesting is fraud.

[honeybee13]

I agree with what has been said. Defrauding the system is dishonest and I believe will be picked up in due course.

 

HB

[textbook]

Yeah, we can give factual information here but we're not going to advise anyone on how to commit fraud.

 

So, first off - if he's entitled to contribution based JSA, his savings will not affect his entitlement. Of course, if he needs JSA for longer than the 26 week JSA© period, he would need to claim income based JSA, which would be affected. For reference, JSA(IB) is reduced by £1 per week for every £250 (or part thereof) in savings that he has over £6000. If he has £16,000 or more, he will not be entitled to JSA(IB).

 

It would be extremely unwise for him to attempt to hide the money from the DWP.

 

 

Yeah that's what I said, even if he closes that debit card account and opens a new one in another bank they might still find this transaction through using the credit check companies and then the etrade account.

[SabreSheep]

Whats worse is that if detected years down the line, a prosecution may occur, and a heft BACKPAYMENT demanded as well. And a debt to the government never goes statute barred.

We sometimes get people coming here asking for help for a overpayment that happened 12 years ago.....

[textbook]

That long after? How do they monitor all these bank account transactions and the balances? I thought they needed permission to go snooping around

[SabreSheep]

not for fraud detection

[RaeUK]

It is always sad to read posts regarding people like the OP's friend. It is this minority of greedy gits who give the majority of claimants who are in genuine need a bad name. Income based benefits are for people who do not have any money or very little money. £6k is a nice sum to be allowed to keep for emergencies. Many on IR benefits would wish they had that amount. Any more than that and, quite rightly, you're expected to live off it until it has been whittled down to the minimum. And can be proven as such. Personally, I think that is very fair and very right. IR benefits are a much needed safety net not a right for those who can afford to support themselves for a while or longer.

I wouldn't wish to remain friends with someone who's character turned out to be that of a fraudster and a thief. I wouldn't trust them around what little possessions I have.

[id6052]

data-matching exercises routinely look at capital over the last 3 or 4 years

[GrumpyToSayTheLeast]

So he has already transferred 6k and had another 3k in his accounts!!!

 

Personally, I hope he gets found out and gets a criminal record for benefit fraud if hr continues down this route. I work damn hard to earn my money and I don't mind paying taxes and insurances to help those that need help. But the thought of my money, and everyone else's, paying for some low life **** to live cushty is sickening.

 

And yes, I mean it when I say low life ****.

[blondebubbles]

HMRC have access to CRA so I would imagine DWP will too.

[citizenB]

I am closing this thread, CAG does not condone fraud.

[SabreSheep]

I have also unapproved posts condoning and instructing on how to commit fraud.

 

If that is the kind of advice you want to give or receive then you have arrived at the wrong forum.