Mrs. B*, a 76-year-old resident, found herself facing overwhelming debt and a complex benefits situation after family members moved into her home. Our Money Advisor, Joanne, stepped in to help Mrs B. clear her arrears and restore her financial independence.
The background
Following a relationship breakdown in 2019, Mrs. B’s son and two adult grandsons moved into her home. At the time, Mrs. B was receiving State Pension and Pension Credit. Unaware that the change in her living situation affected her claims, she didn’t notify the local authority.
In August 2025, the three additional adults living with Mrs. B were processed as part of a routine review. Because the son and grandsons were earning, the local authority determined that Mrs. B had been overpaid for six years. For Mrs B., this meant:
- a Housing Benefit overpayment of £47,000;
- a Council Tax Support overpayment of £11,000;
- a sudden requirement to pay full rent and £2,000 per month in Council Tax.
How we helped
Our Money Advisor met with Mrs. B and her family to assess their options. Given the large debt and Mrs. B’s age, standard repayment plans were not feasible. We supported Mrs. B by:
- Managing the debt: After providing detailed information and allowing the family time to reflect, we supported Mrs. B in applying for bankruptcy. This allowed both the Housing Benefit and Council Tax overpayments to be legally written off, removing a life-altering financial burden.
- Identifying health needs: During the initial assessment, our officer noticed Mrs. B was physically struggling with mobility. By asking the right questions about her daily care needs, we identified she was eligible for further support. We helped her to submit a successful claim for Attendance Allowance.
- Restoring benefit entitlement: Securing Attendance Allowance for Mrs. B played an important role in her case. Receiving this benefit meant the income of the other adults living with Mrs B in the house (non-dependants) was disregarded.
The outcome
Because of the new award, we successfully reapplied for Mrs. B’s benefits and she was awarded:
- Full Housing Benefit and Council Tax support
- Additional financial support she needs to manage her health conditions
- Being debt-free means her home is secure
Reflecting on the support they received, Mrs B’s son, Peter*, said:
"We truly appreciate everything that you have done for us. You’ve been amazing, and we will never be able to thank you enough."
If you’re worried about managing your debt or would like to talk to someone about your financial situation, you can reach out to our Money Advice Team by filling out this form, or by calling our Hub team on 0345 60 20 540. Our friendly Money Advice can support you with free and confidential advice.
*Names have been changed for anonymity.
