Incapacity benefit and lump sum

Just wondered if anyone is able to shed some light on my situation.I am currently on incapacity benefit long term,for which I receive £221.70 every fortnight.I have been granted a pension from my employer.I am able to take a lump sum of roughly 17k tax free and then a monthly payment thereafter.
I am aware that if you have savings of over 9k you need to advise benefits and also housing and council tax benefit.If I would like to give my daughter some money and buy her a car,meaning I will have under the 9k.Am I able to do this??? Not sure if I will be penalised as I did have more than the limit originally.
New to comping and loving it :j
November wins Book,One Direction DVD
«134

Comments

  • McKneff
    McKneff Posts: 38,816
    Name Dropper First Anniversary First Post
    Forumite
    Google 'deprivation of assets' that should answer your question.

    In short, if you give your money away, you will still be assessed as if you still had it.
    make the most of it, we are only here for the weekend.
    and we will never, ever return.
  • Dunroamin
    Dunroamin Posts: 16,908 Forumite
    Although deprivation of capital shouldn't be an issue with IB, that will change when you move to ESA and could be a problem then.

    Don't forget that, although IB isn't means tested, it will be affected when you start receiving your pension and could disappear altogether.
  • zaksmum
    zaksmum Posts: 5,529
    First Post First Anniversary Combo Breaker
    Forumite
    I thought long term incapacity benefit was not means tested...?
  • McKneff
    McKneff Posts: 38,816
    Name Dropper First Anniversary First Post
    Forumite
    I would think with a £17K lump sum (and Im only guesstimating) that your pension is going to be less than around £350 a month which is when it starts affectin your IB (going from my own experience) but hey, legislation seems to change on a daily basis.

    If youclaim any means tested benefits I would be cautious about giving your money away.
    make the most of it, we are only here for the weekend.
    and we will never, ever return.
  • McKneff
    McKneff Posts: 38,816
    Name Dropper First Anniversary First Post
    Forumite
    zaksmum wrote: »
    I thought long term incapacity benefit was not means tested...?


    It isnt means tested but private pension income can affect it.
    make the most of it, we are only here for the weekend.
    and we will never, ever return.
  • zaksmum
    zaksmum Posts: 5,529
    First Post First Anniversary Combo Breaker
    Forumite
    Oh, thanks Mckneff, I was worried there for a minute!
  • Mojisola
    Mojisola Posts: 35,551
    Name Dropper First Post First Anniversary
    Forumite
    josoph wrote: »
    Just wondered if anyone is able to shed some light on my situation.I am currently on incapacity benefit long term,for which I receive £221.70 every fortnight.I have been granted a pension from my employer.I am able to take a lump sum of roughly 17k tax free and then a monthly payment thereafter.
    I am aware that if you have savings of over 9k you need to advise benefits and also housing and council tax benefit.If I would like to give my daughter some money and buy her a car,meaning I will have under the 9k.Am I able to do this??? Not sure if I will be penalised as I did have more than the limit originally.

    Shouldn't that be £6k?
  • jonliv
    jonliv Posts: 119 Forumite
    Your Incapacity Benefit will not be affected by Pension Income if you satisfy any ONE of these conditions


    Exceptions
    This rule does not apply if:

    1) you were in receipt of Incapacity Benefit before 6 April 2001,

    2) your claim is made under the linking rules for Incapacity Benefit and links back to before 6 April 2001,
    or

    3) you receive the highest rate of the care component of Disability Living Allowance

    There are also transitional arrangements in place for when you are migrated to ESA
  • Dunroamin
    Dunroamin Posts: 16,908 Forumite
    OP, do you claim any means tested benefits?
  • josoph
    josoph Posts: 34 Forumite
    I recieve Tax credit,child benefit and Incapacity benefit.
    I have had incapacity benefit for two years.Yes my pension will be about £230 a month.
    So if I use this money they will still look at it as if I still have it,is that what your saying?
    New to comping and loving it :j
    November wins Book,One Direction DVD
This discussion has been closed.
Meet your Ambassadors

Categories

  • All Categories
  • 342.5K Banking & Borrowing
  • 249.9K Reduce Debt & Boost Income
  • 449.4K Spending & Discounts
  • 234.6K Work, Benefits & Business
  • 607.1K Mortgages, Homes & Bills
  • 172.8K Life & Family
  • 247.4K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.8K Discuss & Feedback
  • 15.1K Coronavirus Support Boards