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Cash dilemma

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  • Cash dilemma

    While doing a deep clean of the house, a carer, who has power of attorney (Finance and Health & Welfare), for the person they care for has discovered a large amount of cash (over 16k). The carer has been doing annual benefit returns because the balance of the savings account of the person they care for has been going down due to their outgoings exceeding their pension & benefit income. Benefit was originally claimed by and when the person was quite well and "with-it" but they are now suffering from advanced dementia - hence the carer now - and have no idea where the money has come from. The carer feels that they should pay the cash into the savings account and then it will be taken into account at the next annual benefit review but are concerned that this will leave them (the carer) open to a charge of fraud. What should the carer do?
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  • #2
    The most important thing is to report the £16000 they have found immediately to the Department of Work and Pensions. The type of benefit that is being claimed will depend on whether or not these savings will impact the amount of money that is received. If it is an earning based benefit, such as Universal Credit, the savings will be taken into account. If it is a disability benefit, such as Personal Independence Payments, the savings are unlikely to have an impact. What benefits are being claimed?
    I am a law student undertaking work experience on the LegalBeagles forum. My advice is from my own experience only and is given without liability. If in any doubt, please contact a regulated and insured legal professional to seek further advice.

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    • #3
      Originally posted by Law Student 3 View Post
      The most important thing is to report the £16000 they have found immediately to the Department of Work and Pensions. The type of benefit that is being claimed will depend on whether or not these savings will impact the amount of money that is received. If it is an earning based benefit, such as Universal Credit, the savings will be taken into account. If it is a disability benefit, such as Personal Independence Payments, the savings are unlikely to have an impact. What benefits are being claimed?
      What is the likely outcome if the the carer reports the cash in regards to the carer? Could they face prosecution? Given the circumstances who is liable to the DWP for any over-payment of benefits? As the carer has power of attorney, and the person they care for no longer has legal capacity, is it correct that the carer is responsible for any benefit claimed?

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      • #4
        I think that as the carer didn't know about the money it would be unlikely that she would be held responsible for fraud, but the person claiming might be if they knew about the money, unless they had forgotten about it? which might be the case. I don't think under these circumstances the DWP would go after anyone, they would be happy I expect to withold some of the money they pay!
        Just wondering, has the carer spoken to the person they care for about this money? is the person who presumably owns the money able to understand about it? wonder where it all came from...?!

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