Savings and Benefits

Kimberley
Kimberley Posts: 14,871 Forumite
in Benefits & tax credits
How much do you have to have in savings before they use the savings as income? I'm not sure if it's £3000 or £4000 :confused: I say this because my savings were down in the breakdown of how they assessed my benefits as capital.

Comments

  • healy
    healy Posts: 5,293 Forumite
    First Anniversary
    Its £6000 for means tested benefits like Income Support.
  • TOBRUK
    TOBRUK Posts: 2,343 Forumite
    I have been confused about this myself - I read it was £6000 (single person) somewhere although I also read that anything over £3000 they reduce income support £1 of every £250, have I got it totally wrong?

    I know that it used to be £3000 about 4-5 years ago because it affected me at that time.
  • healy
    healy Posts: 5,293 Forumite
    First Anniversary
    You are right about the reduction but it happens from £6000 now, this was brought in last year.
  • TOBRUK
    TOBRUK Posts: 2,343 Forumite
    Crumbs, that shows I am behind the times! Thanks healy for putting me right;)
  • davemack_2
    davemack_2 Posts: 14 Forumite
    Hope this isn't 'overkill'. Here's the relevant information, from leaflet BRA5DWP Social Security Benefit Rates (available as a PDF at http://www.jobcentreplus.gov.uk/JCP/stellent/groups/jcp/documents/websitecontent/dev_012059.pdf)

    Savings rules
    Savings rules are sometimes called capital rules. The following
    limits apply:
    • Upper limit (income-based Jobseeker’s
    Allowance and Income Support): £16,000
    • Lower limit (income-based Jobseeker’s
    Allowance and Income Support): £6,000
    • Upper limit (Housing Benefit (HB) and
    Council Tax Benefit (CTB)): £16,000
    • Lower limit (HB and CTB): £6,000
    Savings/capital are ignored for HB/CTB where a person is in receipt
    of Income Support, income-based Jobseeker’s Allowance, or the
    Guarantee Pension Credit (with or without a Savings Credit).
    For people in care homes, the following limits apply:
    • Upper limit (income-based Jobseeker’s Allowance,
    Income Support, Council Tax and Housing Benefit) £16,000
    • Lower limit (income-based Jobseeker’s Allowance,
    Income Support, Council Tax and Housing Benefit) £10,000
  • black-saturn
    black-saturn Posts: 13,937 Forumite
    Combo Breaker First Post
    Why do they need to know how much savings you have?
    2008 Comping Challenge
    Won so far - £3010 Needed - £230
    Debt free since Oct 2004
  • healy
    healy Posts: 5,293 Forumite
    First Anniversary
    If it is a means tested benefit they need to know your savings amount in order to pay the correct amount of benefit.
  • Kimberley
    Kimberley Posts: 14,871 Forumite
    So if i have saved up to £6000 then this cannot be used as income when they assess my CT/HB or Tax Credits?

    Thats fab because i want to save about that amount towards my immigration and visa costs in a few years time :)
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