Implementing regular financial checks on residents

[Rvollerthun@gmail.com]

Our charity has never carried out further financial checks on residents after the initial one to monitor if they still are eligible for living in an almshouse. We would like to start thinking about doing this but it seems very tricky how to go about it: please can I get some advice on how this is generally managed ie do you pay for professional financial advisor to look through their finances who can then also offer advice on managing their money? How often is this done? How to manage it if someone is in fact now in possession of enough funds no longer to be eligible? It seems necessary to do to make sure the houses go to those most in need but also one doesn’t wish to be cruel or intrusive! Many thanks, any advice appreciated,
Rachel

[Sarah Massey]

Hi Rachel

We do a fairly simple annual review form that goes out to all residents before our annual inspections (that way we can collect in any forms on the inspection that havent come back!). We dont ask for any evidence so it is done on Trust, though I do email the WMC increase letters direct to the local authority so I do know their HB claim is valid. The questions are:

1. Are you in receipt of housing benefit?
2. Are you in receipt of pension credit or income based Universal Credit? (this is so we can signpost those we think might have a valid claim)
3. What is your total annual income from all work, pensions, benefits, dividends and other income sources (to the nearest £1000)?
4. What is your total savings including shares/any other investments (to the nearest £1000)?
5. How many hours a week are you in paid employment? (this is so we can check those eligilbe for ARC TV licenses)
6. Are there any changes to who lives in your household?
7. Has there been any significant changes to your financial circumstances in the last year (pensions/earnings/large lottery wins/inheritance/cash gifts etc)?
8. Do you feel able to live independently and safely in your home?
9. Have you any unspent adult cautions (simple or conditional) or spent convictions that are not protected as defined by the Rehabilitation of Offenders Act 1974 (exceptions) order 1975 (amendment) (England & Wales) order 2020? Or are you subject to any antisocial behaviour orders or community protection notices?

I hope this helps
Sarah
Dartmouth United Charities

[Rvollerthun@gmail.com]

That is very helpful Sarah – thank you very much for taking the time to explain this to us. All the best,
Rachel

[Tina Collins]

We have just started to do this, as per an AA recommendation to check eligibility every 3-5 years and sent all the residents an abbreviated version of the application form (finance only) section. It has been very helpful to identify who is receiving benefits and if someone could be claiming something which they were perhaps unaware of.

[Rvollerthun@gmail.com]

That’s great thanks very much Tina

[emmapannell]

Hi – having never carried out financial eligibility checks, we implemented a comprehensive review in 2023 as we already certain that there were residents residing at our almshouses who were not beneficiaries.

We asked for information similar to Sarah’s above, but also evidence in the form of bank statements, etc, as we needed to be certain about each person’s eligibility. We also asked each person whether the information they provided on their original form was accurate. It was quite a big project (we have 62 almshouses). This evidence of financial status and need is, of course, the crux of an almshouse charity’s purpose – providing housing to those in need, and, with trustees legally liable for any breaches of the charity’s purpose you must be able to evidence that situation in each case.

We had planned for the fact that we may have had to conclude this review by asking some residents to leave, as they were not beneficiaries, but in the end, several made the decision to leave by themselves. They had effectively been able to live at our almshouses for many years, paying what was then an extremely low level of WMC, whilst protecting their own finances, and we knew (and they knew) that this could not continue.

We carried out the reviews ourselves. It was just a case of looking at their bank statements, and comparing with what they said they had when they applied. No specialist knowledge is needed – but it’s not an easy task, and requires asking difficult questions. It did also lead to several being helped by our Beneficiary Manager to apply for benefits which they had not realised they were entitled to.

We now routinely ask each applicant when applying to us, for evidence in the form of bank statements, benefit receipt, etc.

Wish you all the best with your review.
Emma

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