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Thread: What are savings?

  1. #1
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    What are savings?

    Twice in the past 3 years we have been asked to supply bank statements etc. to DWP. The last batch went back to 2009 and resulted in several hundred statements being sent off (photocopied by JSP).

    The problem appears to be that our bank allows us to set up various internal accounts for making managing money easier. So, we have one for rent payments to go into, DLA and IS into another, regular payments into another and so on.

    We have now been hit with a £700 overpayment because they appear to have used these accounts as savings!!
    There is separate savings accounts which we have always included in any requests from them.

    Has anyone ever heard of this before? At certain times of the month, these accounts may have money in them, but it has only been apportioning of benefits. These 'accounts' only accept payments to/from the current account.

    Any advice would be welcome.

  2. #2
    Senior Member Lighttouch's Avatar
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    They are checking to see if you are 'money laundering' - be thankful that your name and photo aren't plastered over the press. Not suggesting anything illegal but think the way the DWP do to justify their pay packet.

  3. #3
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    Savings - ALL bank accounts, cash, disposable assets (e.g. shares, premium bonds, etc.), not complete list

  4. #4
    Senior Member Kodiak's Avatar
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    Thank Goodness that I do Not have a Bank Account at all. All I have is the Post Office Card Account where I get my Pension, Pension Credit and DLA Paid into. All I can do with this account is to take Money out, I can not put money in at all.

    So Every Week I take out my money and I pay for everything Cash! This way if I want to buy sometime more than a few pounds I have to save up and then I pay Cash for it. I have no credit card and no debit card either.

    Best thing I ever did was getting rid of my Bank Account about 10 years ago as life is so much simpler now.
    Deep into that darkness peering, long I stood there, wondering, fearing, doubting, dreaming dreams no mortal ever dared to dream before.
    Edgar Allen Poe

  5. #5
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    Quote Originally Posted by froisaf View Post
    Twice in the past 3 years we have been asked to supply bank statements etc. to DWP. The last batch went back to 2009 and resulted in several hundred statements being sent off (photocopied by JSP).

    The problem appears to be that our bank allows us to set up various internal accounts for making managing money easier. So, we have one for rent payments to go into, DLA and IS into another, regular payments into another and so on.

    We have now been hit with a £700 overpayment because they appear to have used these accounts as savings!!
    There is separate savings accounts which we have always included in any requests from them.

    Has anyone ever heard of this before? At certain times of the month, these accounts may have money in them, but it has only been apportioning of benefits. These 'accounts' only accept payments to/from the current account.

    Any advice would be welcome.

    It seems that they are adding all the accounts together? Just to clarify - your benefit payments go into one account. The bank then transfers funds to other internal accounts from which direct debits are paid. But the DWP are classing those internal transfers as additional money going in for your own use, and adding those transferred amounts onto the initial benefit payments?
    If that is the case I would suggest the easiest way to wriggle out of the mess is to ask your bank to provide you with a written statement to explain what they are doing - and confirming that your only actual income is what goes into your main account. Send that to DWP together with your own covering letter to explain your banks' system, and include the number of the account which is your benefit one. Include if you can evidence of the regular payments - copies of the tenancy agreement, receipts for regular bills, direct debit/loan agreements etc. The aim is to show proof of what you are paying out and how that compares with your income.
    I know it's too late now but there was no need to send the DWP copies of those internal accounts in the first place. They only need to see what income you have, and what is left in the account at any one time.

  6. #6
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    Quote Originally Posted by Carneucopia View Post
    It seems that they are adding all the accounts together? Just to clarify - your benefit payments go into one account. The bank then transfers funds to other internal accounts from which direct debits are paid. But the DWP are classing those internal transfers as additional money going in for your own use, and adding those transferred amounts onto the initial benefit payments?
    If that is the case I would suggest the easiest way to wriggle out of the mess is to ask your bank to provide you with a written statement to explain what they are doing - and confirming that your only actual income is what goes into your main account. Send that to DWP together with your own covering letter to explain your banks' system, and include the number of the account which is your benefit one. Include if you can evidence of the regular payments - copies of the tenancy agreement, receipts for regular bills, direct debit/loan agreements etc. The aim is to show proof of what you are paying out and how that compares with your income.
    I know it's too late now but there was no need to send the DWP copies of those internal accounts in the first place. They only need to see what income you have, and what is left in the account at any one time.
    Thank you for replying. They do not actually say that the the other accounts are being taken as savings, but at the end of each month the capital varies by more than our savings, so I assume they are. Moving money into those accounts is to make sure that when it is needed the money is there. When our HB goes in for example, it would be counted as savings if it is still there when they check?

    Money cannot be paid into or out from these accounts, except to the main account.

    Seems wrong to me, close the accounts and withdraw all benefits and pay in cash is probably the best option.

  7. #7
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    Quote Originally Posted by Kodiak View Post
    Thank Goodness that I do Not have a Bank Account at all. All I have is the Post Office Card Account where I get my Pension, Pension Credit and DLA Paid into. All I can do with this account is to take Money out, I can not put money in at all.

    So Every Week I take out my money and I pay for everything Cash! This way if I want to buy sometime more than a few pounds I have to save up and then I pay Cash for it. I have no credit card and no debit card either.

    Best thing I ever did was getting rid of my Bank Account about 10 years ago as life is so much simpler now.

    JP Morgan the world wide Bankers now run this post office account for the post office.

  8. #8
    Senior Member susieboots's Avatar
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    I have never been asked to produce bank statements by DWP, however I would be happy to do so, they will clearly see that I am living hand to mouth on the meagre sum I am paid.

  9. #9
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    You have to be so careful these days, especially as the DWP can do a check with private companies to carry out searches.

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