Financial interdependence

When considering if a client is in a de facto relationship, you need to determine if the client and the other person are financially interdependent. This includes the sense of at least a willingness to support the other person if that person cannot support themselves. This does not mean that the financial support already exists, but that it would if needed.

Note financial interdependence also exists if the client and the other person have a mutual understanding as to how the family unit will be supported.

You can only pay a single or sole parent rate of benefit if there is a genuine absence of financial interdependence. This means that a couple cannot rearrange their circumstances just to qualify for a benefit for which they would otherwise not qualify.

Every relationship is different and to assist you to determine if a client and another adult are financially interdependent a list of possible indicators is provided. Not all relationships will have all these indicators. To help you discuss the relationship the client may have with the other adult, you may consider:

• joint bank accounts, assets or joint loans/credit
• joint ownership of real estate or other major assets and any joint liabilities e.g. both the client and the other adult own a rental property
• significant pooling of financial resources especially in relation to major financial commitments eg saving for a house, car or holiday
• legal obligation owed by one person in respect of the other person eg the other adult is the guarantor for a TV hire purchase
• joint ownership of a car. Do they both use it?
• items the other adult pays for, if any? eg SKY television rental, internet broadband
• arrangements for paying bills or for groceries
• the sharing of day to day household expenses

If you are unable to make a decision regarding the client's relationship you can discuss the case with your regional solicitor or local fraud investigator.