How much savings you are allowed before it affects the benefits

Hi,

I'm trying to work out how much of my savings I should leave in ISA and saving account so that it wouldn't affect any possible benefits when I claim, after my baby is born in April.

Thanks in advance
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Comments

  • dmg24
    dmg24 Posts: 33,925 Forumite
    Are you married or single?
    Gone ... or have I?
  • katie1
    katie1 Posts: 837 Forumite
    Dont take this as gospal but i think it either £6000 or £8000.
  • healy
    healy Posts: 5,293 Forumite
    First Anniversary
    katie1 wrote: »
    Dont take this as gospal but i think it either £6000 or £8000.

    £6000 is the lower capital limit and £16000 is the upper capital limit.
  • Oh, thanks.

    I am single (the father of the baby doesn't care much and has no money so I am on my own).
    I am working full time, trying to pay off as much of my mortgage as possible but I was advised on mortgage-free wannabe to save on ISA and other saving account as the saving rate is higher than my mortgage rate and in case of emergency I have access to some money. If I pay it into my mortgage it's gone. But on the other hand I don't want to lose out on any benefits just because I decided to save instead of putting the money into my mortgage account. So if I have anything above the limit, I'd rather pay it towards the mortgage.
  • jay1jay
    jay1jay Posts: 146 Forumite
    For tax credits it doesn't matter how much you have in savings, you just claim any 'other' income you get above £300 a year, which includes interest. Maintenance isn't counted either (if you get any)
  • Gazella77
    Gazella77 Posts: 201 Forumite
    jay1jay, are you sure? because I keep hearing that savings may affect benefits and I am getting more and more confused.

    If you are right it means that only the interest I earn should be declared, right? Which with ISA is around £150 a year and including the other saving account, it wouldn't probably even reach £300
  • Scarlett1
    Scarlett1 Posts: 6,887 Forumite
    Gazella77 wrote: »
    jay1jay, are you sure? because I keep hearing that savings may affect benefits and I am getting more and more confused.

    If you are right it means that only the interest I earn should be declared, right? Which with ISA is around £150 a year and including the other saving account, it wouldn't probably even reach £300
    means tested benefits, i.e. income support, housing and council tax benefit will depend on what savings you have.
  • lucia15
    lucia15 Posts: 47 Forumite
    healy wrote: »
    £6000 is the lower capital limit and £16000 is the upper capital limit.

    Correct (from a Benefits Assessor).
  • Gazella77
    Gazella77 Posts: 201 Forumite
    Right, so what is the difference in them? Who can have a lower/ higher limit?

    Also I was told by a friend today that I shouldn't even declare cash ISA as the idea of ISA is not to be taxed anyway. Any ideas about that?
  • Scarlett1
    Scarlett1 Posts: 6,887 Forumite
    Gazella77 wrote: »
    Right, so what is the difference in them? Who can have a lower/ higher limit?

    Also I was told by a friend today that I shouldn't even declare cash ISA as the idea of ISA is not to be taxed anyway. Any ideas about that?
    yes you would have to declare an ISA if you go on to claim a means tested benefit, IS has a limit of 6k in savings, not sure about council tax benefit think 16k is the upper limit.
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