If you save your benefits do they get taken back / Lying about savings question

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  • Solitaires
    Solitaires Posts: 41 Forumite
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    hmm I'm not sure now, should I declare my £400 as savings to the DWP and Council? That's all I have apart from a £150 float for my bills.
  • princessdon
    princessdon Posts: 6,902 Forumite
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    Solitaires wrote: »
    hmm I'm not sure now, should I declare my £400 as savings to the DWP and Council? That's all I have apart from a £150 float for my bills.

    It is over £6K they are interested in.
  • bengal-stripe
    bengal-stripe Posts: 3,349 Forumite
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    Solitaires wrote: »
    .....should I declare my £400 as savings to the DWP and Council? That's all I have apart from a £150 float for my bills.

    You can have up to £6000 in 'capital' without affecting any means-tested benefits. 'Capital' would include your savings as well as your 'float'.

    As you're quite a bit away from those 6k, you don't have to inform anybody.
  • Solitaires
    Solitaires Posts: 41 Forumite
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    Thanks, I thought I might have done something wrong by not telling them. There's no chance I'll be able to save 6k but then I wouldn't expect to be able to. I'm hoping I'll be able to pick up a cheap runabout for about £600 so I have a bit to go yet.
  • heartbreak_star
    heartbreak_star Posts: 8,286 Forumite
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    Solitaires wrote: »
    I'm saving my lower rate DLA mobility allowance so I can replace my very old knackered car for an old slightly less knackered car. I've been saving it for two years now and have £400. That is the extent of how much I can save from my benefits. Without this allowance I would be housebound and at the moment have to find tax, insurance and £20 a month petrol from my ESA allowance which really isn't easy but I just about manage it.

    Can you get a mobility car?

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  • rogerblack
    rogerblack Posts: 9,446 Forumite
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    heartbreak_star wrote: »
    Can you get a mobility car?

    HBS x

    Lower rate mobility - so no.

    I've said for a long time it's a pity people can't 'defer' benefits.

    This would let you save up any you diddn't need, and draw it out as you like, with no capital limits applying at all.

    The benefit to the government would be that this would not be a transferrable asset on death, and would in the meantime be effectively lent by the claimant to the government.
  • Penny-Pincher!!
    Penny-Pincher!! Posts: 8,325 Forumite
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    princessdon wrote: »
    It is over £6K they are interested in.

    Do you not have to let them know of any savings? I remember when we were on Income Support, it was something that never seemed very clear. Do you need to let them know every time you save or is it just over the 6k? Someone I know has recently been made redundant and she has over 12k in savings, but she was still able to receive benefits? I asked her why she couldn't use her savings to live, but she said she was entitled although they deduct a very small amount.

    It doesn't make sense to me? I know others with no savings and small children both working but have had to take a cut in wages and they don't receive any help. However, they do have a lot of debt.
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  • skintandscared_2
    skintandscared_2 Posts: 2,781 Forumite
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    rogerblack wrote: »
    Lower rate mobility - so no.

    I've said for a long time it's a pity people can't 'defer' benefits.

    This would let you save up any you diddn't need, and draw it out as you like, with no capital limits applying at all.

    The benefit to the government would be that this would not be a transferrable asset on death, and would in the meantime be effectively lent by the claimant to the government.

    But surely benefits are there to literally prevent people from being on the streets/starving. If people have enough money that they can afford to "defer" benefit payments then I'm sorry but I don't think they should still be entitled to it!
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  • alieshia
    alieshia Posts: 60 Forumite
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    Penny-Pincher!! wrote: »
    Do you not have to let them know of any savings? I remember when we were on Income Support, it was something that never seemed very clear. Do you need to let them know every time you save or is it just over the 6k? Someone I know has recently been made redundant and she has over 12k in savings, but she was still able to receive benefits? I asked her why she couldn't use her savings to live, but she said she was entitled although they deduct a very small amount.

    It doesn't make sense to me? I know others with no savings and small children both working but have had to take a cut in wages and they don't receive any help. However, they do have a lot of debt.
    when my brother was made redundant he lived off of his redundancy pay till it was gone then applied for benefits and because he did it the "right" way he was eligible for a lot less money than if he'd claimed straight away, daft isn't it.
  • princessdon
    princessdon Posts: 6,902 Forumite
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    It's over 6K. Once you have that your benefits are tapered. So someone with £12K will have some entitlement.

    If everyone had to report every time they had £10 - dropped £10 the system would be clogged.

    No it doesn't make sense to me either - £15.5K is a lot of money to have saved and still feel entitled to benefits.

    Then there are currently Tax Credits - where savings are not taken into account at all, so someone can have thousands in the bank and get Tax Credits (only the interest is taken into account - so in a low interest account it's minimal).
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