Can Social security check on your savings

[kelfoan]

I have ben told DWP/Councils can check with the Inland Revenue to check if you have any undeclared savings. surely not!. PS I am not on Benefits nor hiding any savings

[Yorky Lass]

Inland Revenue can and does in some cases tell DWP how much interest has been paid on savings and therefore DWP can work out how much savings you have and compare it to how much was declared on your application form.
They are both government departments so are permitted to share information.

Councils ( Housing Benefit depts) often report previously undeclared savings or income such as a occupational pension to a benefit paying sections.

[Ethel]

Yes they can and do.

There is a cut off point with savings which stops entitlement to benefits.

Liaison with the Inland Revenue is the quickest and easiest way to check.

Keep your money under the mattress, just like grannie used to. :)

[THECORBYLOON]

If someone has not declared savings and that means they receive more than they are entitled to, that is fraud and we are paying for that extra money through taxes. If fraud is suspected the DWP or Councils will use the powers under the various Acts to request information from HMRC (the former Inland Revenue.)

Benefit fraud is not a victimless crime.

[sandbach99]

Can Yorky Lass and Ethel please explain how anyone can work out how much anyone has in savings from interest declared. There is a huge variation in interest rates and the amounts in accounts can vary daily.
Share dividend bears no relation to the value of shares.
I am certain the Inland revenue knows all details regarding ISAs but I am not sure how they find out about interest in ordinary savings accounts as I am sure I haven't given the bank my NI number.
Having got this information how does the DWP deal with it,? do they stop benefit immediately, or call the customer in for a fraud interview which may make an innocent pensioner withdraw their ligitamate claim.
Had a quick look on a tax return it does say the information is confidential, there is no mention of it being passed to other government departments.
I agree Benefit fraud must be stopped but going to the tax office re savings seems an odd way to get useful information.

[THECORBYLOON]

sandbach,see here http://www.hmrc.gov.uk/manuals/ccmmanual/CCM31 20.htm for exchange of information between HMRC and DWP. (The CCRO is the Claimant Compiiance Risk Officer by the way.)

[Yorky Lass]

If say �400 interest was received a standard very generous interest rate is assumed say 5% ( don't know the exact rate but it is MUCH higher than the actual rate) which would make the total savings �8000. If the amount declared on the application form was less than this then yes it would be looked into. Benefit could be stopped and a overpayment declared which would have to be paid back.
Of course �400 interest would be far more with the correct interest rate. Could be well over �13,000.

Sandbach99 not sure what you mean about an innocent pensioner having to withdraw a legitimate claim. How is it legitimate if they have declared an incorrect amount of savings? Pensioners over 65 can have quite a large amount of savings and still be able to receive Pension Credit so there surley is no need to supply incorrect information.
Inland Revenue know about the interest received from the tax you paid on it not from your National Insurance number.