Deprivation Of Capital

[tiny-tidawee]

After a very serious road accident I got compensation. and I remain disabled. At the same time I unfortunately had some very serious structural damage to the house , all the compensation money and more which i took out a loan to borrow, was used for it. It was either that or be homeless. I live in the house but it is not mine and the insurance did not cover this either. Now the income support want to interview me on this and are saying it is deprivation of capital. I have the receipts from all builders etc, involved clearly showing I am telling the truth. However my neighbour says I will be looking at a jail sentence. What can I do?

[EverClean]

Take legal advice.

[lady_p_gold]

Why would you spend money on a house that was not yours ???? Just wondered.

[lady_p_gold]

By the way the chances of them putting a disabled person in prison for benefit fraud would be pretty slim methinks.

[themas]

To try and answer your question we really do need you to reply to Lady_p's query. As the house is not yours, I can well see why Income Support are querying what you have done.

[tiny-tidawee]

Hi there, the house is my parents' who do not live here, it is owned outright by them, they are elderly and not in this country. As I am allowed to live here, rent free, then all the bills are down to me this includes the upkeep, maintenance, plus they just havent got the finances, they've been good enough to let me have this arrangement until I get my own house and get married. That is the situation, and I agree not very typical! Thanks for replies, so far!

[WendyS]

I can see why Income support are calling it deprivation of capital because they probably suspect that even if you don't own the house now, you will inherit it (or a part share of it) when your parents eventually die so have a vested interest in it.
It might help if you had a signed backdated letter from your parents listing the terms under which you are occupying the house but I suggest you contact the Citizen Advice Bureau to see if they can advise you.. Meanwhile, i suggest that you get some proper insurance (both structural and contents). This may be shutting the stable door after the horse has bolted but at least it might protect you against future unforeseen accidents.

[themas]

I agree with Wendy. You may well need specialist advice from a Welfare Benefits Adviser, so see the CAB as soon as you can. They may refer you to a solicitor who specialises in this on legal aid (if you are still getting income support you should be able to get this).

It would certainly be helpful if there was documentation of the tenancy arrangement. It might also be useful for you to know how much rent would have to be paid for the house if it was let commercially. If you had had a commercial tenancy Housing Benefit would have met some at least of this cost and that should be taken into account by the DWP.