https://m.news-mail.com.au/news/grandpa-claims-his-140k-lottery-win-ruined-his-lif/3346455/
This popped up on my Facebook feed today via a mustachian Facebook page.
Old dude on disability pension won 80,000 pounds. Blew it all in a matter of weeks on holidays, renovations and giving away the rest to family.
Welfare department saw his bank records and cancelled his pension.
He's now complaining saying what a nightmare it is.
I am struggling to have any sympathy at all.
In most cases they have no choice but to quickly spend the money as they are not allowed to have any assets above a certain limit (often $5-10k depending on the program and country) and face differing levels of penalties and possibly criminal action if they do not report properly while in possession of such assets and if they continue to unknowingly collect assistance.
I'm sorry what
@FIRE47 ? No choice but to spend as quickly as possible so they can continue collecting benefits? Huh. How about he puts that money in the bank, reports it to the welfare office, and withdraws it SLOWLY in line with his actual expenses.
I wouldn't begrudge him spending a bit extra on a little fun. I'm not Mussolini.
Such a strategy could see that money last up to 4 years. He can then go back on benefits when the money runs out. I don't see why he needs welfare benefits and support immediately, if he suddenly has 80,000 sterling in the bank. It's not a life changing amount of money, but it will tide most people over for a year or more.
Also, how can anyone "unknowingly collect assistance"?
Their assistance is often suspended until they can prove that they spent all of the money and they have their assets audited. These people often do not have the presence of mind (they are on disability for a reason - often it is mental) to keep receipts or to fill in the required reports and so quickly become much worse off than before as they struggle to prove the money has been spent.
They had the presence of mind to fill out the form to collect welfare in the first place, they should have the presence of mind to do the same now. And as you yourself point out, you've been assisting someone who is unable to do it themselves. It is not hard for him to show a bank statement that has "holiday and cruises" written all over the debit lines.
I knew one of these people and was assisting him to keep track of his spending and prepare reports - not even a vehicle is allowed to be kept as it will put them in violation of the asset threshold in many cases. Like many government programs these people quickly become tangled in red tape and run afoul of the rules taking months or years to have their benefits restored long after the windfall has been spent (a windfall an office bureaucrat has threatened them into spending).
Threatened them into spending? I reckon it is simply the advice the welfare officer is trained to give. i.e. "we can't give you benefits if you have money in the bank". Perhaps that sounds like a threat, I don't know, I guess I'm speaking from privilege. But the fact remains, he has money in the bank. Welfare is meant for people who the government deems cannot support themselves. For the time being he can.
We can quibble about amounts, and thresholds (indeed I believe the amount paid for unemployment is punitively low in my country, whilst other benefits are probably too generous). But that is ultimately decided at the ballot box. Not here on this forum.