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Forum Home  →  Discussion  →  Universal credit administration  →  Thread

Notional capital rules and overpayments

AlanRAISE
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RAISE Benefits Advice Team, Liverpool

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Total Posts: 122

Joined: 21 June 2010

I have a client who came into a sizeable amount of money that she didn’t report to the DWP and then proceeded to give away to family members.

3 years on this has caught up with her and of course all her benefits have stopped.

My question is given that she’s clearly been overpaid for 3 years as she was over the capital limits - how are notional capital rules applied when looking at her continued receipt of benefits.

Can we ignore the receipt of benefits and reduce the capital by living costs and rent etc from the moment she received the capital. Or even though it’s an overpayment that will be recovered, is that going to cause issues when reducing the capital?

Thanks.

Ianb
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Macmillan benefits team, Citizens Advice Bristol

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Joined: 24 November 2017

AlanRAISE - 17 December 2021 05:45 PM

Can we ignore the receipt of benefits and reduce the capital by living costs and rent etc from the moment she received the capital.

You don’t say which benefits but I think the reduction in notional capital for each period is the amount of benefit they would have got in that period had there been no capital.

For UC the guidance is at ADM para H1902
https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1038390/admh1.pdf

For ESA see para 52925
https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/932378/dmgch52.pdf

 

[ Edited: 17 Dec 2021 at 06:11 pm by Ianb ]