A person claimed benefits from the government as they had low income. The government said they were entitled as long as their savings were not above 16000 pounds. However recently the person realised that saving certificates abroad were supposed to be declared. The person didn't haver access to the money till recently and has repented from the interest given and will only keep the principal amount which is below the 16000 mark. However the government would have counted the interest which would make the person above the 16000. Now they have been claiming for two years. Was this claim halal as the person is ill now and cannot pay the money back and him and his children will become homeless. The person never intended to cheat anyone it was a genuine mistake.

All perfect praise be to Allaah, The Lord of the Worlds. I testify that there is none worthy of worship except Allaah, and that Muhammad, sallallaahu ‘alayhi wa sallam, is His slave and Messenger.

They have the right to claim the assistance money that was paid to him because he was not entitled to it. He is obligated to pay it back to them unless they forgive the debt or exempt him from paying it, because he wrongly acquired it. It was his mistake and he is the one responsible for the consequences, so he should fear Allaah and return the dues to whoever they belong to.

He should know that Allaah will not neglect him, so he should seek what Allaah provides by obeying Him, not by disobeying him. Allaah says (what means): {And whoever fears Allaah, He will make for him a way out, and will provide for him from where he does not expect.} [Quran 65:2-3]

A Hadeeth reads: “Do not let having to wait for your sustenance cause you to seek it by disobeying Allaah, for what belongs to Allaah is only obtained by obeying Him.” [at-Tabaraani - Al-Albaani mentioned it in As-Saheehah]

The Prophet also said: “The Holy Spirit (Gabriel) revealed to my heart that no soul shall die until its sustenance and term are reached in full. So, fear Allaah and seek it (sustenance) with decency.” Abu Nu‘aym reported this Hadeeth in Al-Hilyah on the authority of Abu Umaamah and Ibn Hajar traced it to Ibn Abi Ad-Dunya and quoted Al-Haakim as saying that it is Saheeh (sound) on the authority of Ibn Mas‘ood .

Allaah Knows best.