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  • FIRST POST
    • sweetbutternut
    • By sweetbutternut 21st Apr 17, 12:52 PM
    • 119Posts
    • 10Thanks
    sweetbutternut
    Savings and Benefits question
    • #1
    • 21st Apr 17, 12:52 PM
    Savings and Benefits question 21st Apr 17 at 12:52 PM
    Wondering if someone can help.

    1. Will we lose means tested benefits if there is a payout from my husband's serious illness / critical illness policy?

    2. Does a Junior ISA count as savings in relation to means-tested benefits?

    3. Does an untouched private pension count as savings in relation to means-tested benefits?

    Thanks
Page 1
    • pmlindyloo
    • By pmlindyloo 21st Apr 17, 1:04 PM
    • 10,760 Posts
    • 12,637 Thanks
    pmlindyloo
    • #2
    • 21st Apr 17, 1:04 PM
    • #2
    • 21st Apr 17, 1:04 PM
    Can you please tell us which benefits you are referring to?
    • sweetbutternut
    • By sweetbutternut 21st Apr 17, 1:18 PM
    • 119 Posts
    • 10 Thanks
    sweetbutternut
    • #3
    • 21st Apr 17, 1:18 PM
    • #3
    • 21st Apr 17, 1:18 PM
    Housing benefit, child tax credits, working tax credits.
    • xylophone
    • By xylophone 21st Apr 17, 2:24 PM
    • 23,144 Posts
    • 13,412 Thanks
    xylophone
    • #4
    • 21st Apr 17, 2:24 PM
    • #4
    • 21st Apr 17, 2:24 PM
    Does a Junior ISA count as savings in relation to means-tested benefits?
    No - a JISA belongs to the child absolutely and under all except very sad circumstances, can only be accessed by the child himself when he turns 18.

    That said, if a person in receipt of means tested benefits were suddenly to start contributing to a JISA and particularly in large amounts, a Decision Maker might become involved?

    3. Does an untouched private pension count as savings in relation to means-tested benefits?
    https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/417473/pension-flexibilities-dwp-benefits.pdf

    1. Will we lose means tested benefits if there is a payout from my husband's serious illness / critical illness policy?
    Presumably once you received such a payment the money would be regarded as capital?

    If this were the case, you would need to consider how capital affects means tested benefits?
    • sweetbutternut
    • By sweetbutternut 21st Apr 17, 3:22 PM
    • 119 Posts
    • 10 Thanks
    sweetbutternut
    • #5
    • 21st Apr 17, 3:22 PM
    • #5
    • 21st Apr 17, 3:22 PM
    Thanks for the info and links xylophone. I read the link you included, but I am still very confused!

    My husband is 55 and unfortunately, only has a few hundred pounds in his private pension. Sad, but true. I was just wondering if he could continue saving into his private pension without touching the pension pot.

    Does an untouched pension pot count as "savings" even if the money is not accessed?
    • marliepanda
    • By marliepanda 21st Apr 17, 3:50 PM
    • 4,722 Posts
    • 9,513 Thanks
    marliepanda
    • #6
    • 21st Apr 17, 3:50 PM
    • #6
    • 21st Apr 17, 3:50 PM
    Thanks for the info and links xylophone. I read the link you included, but I am still very confused!

    My husband is 55 and unfortunately, only has a few hundred pounds in his private pension. Sad, but true. I was just wondering if he could continue saving into his private pension without touching the pension pot.

    Does an untouched pension pot count as "savings" even if the money is not accessed?
    Originally posted by sweetbutternut
    I believe if you choose to not take it, it's counted, as you've chosen to 'deprived yourself of that income so they class it as you still having it. It's only Ones that you can't access that are discounted
    Survey Earnings 2017 - £163
    • sweetbutternut
    • By sweetbutternut 21st Apr 17, 4:17 PM
    • 119 Posts
    • 10 Thanks
    sweetbutternut
    • #7
    • 21st Apr 17, 4:17 PM
    • #7
    • 21st Apr 17, 4:17 PM
    Thanks marliepanda. That makes sense....

    Can you or anyone else confirm what xylophone said, that Junior Isas are exempt from what is classed as "savings"?
    • Housing Benefit Officer
    • By Housing Benefit Officer 21st Apr 17, 5:32 PM
    • 2,387 Posts
    • 4,244 Thanks
    Housing Benefit Officer
    • #8
    • 21st Apr 17, 5:32 PM
    • #8
    • 21st Apr 17, 5:32 PM
    Junior ISAs are the childs capital and disregarded for benefits purposes.
    These are my own views and you should seek advice from your local Benefits Department or CAB.
    • xylophone
    • By xylophone 21st Apr 17, 9:57 PM
    • 23,144 Posts
    • 13,412 Thanks
    xylophone
    • #9
    • 21st Apr 17, 9:57 PM
    • #9
    • 21st Apr 17, 9:57 PM
    My husband is 55 and unfortunately, only has a few hundred pounds in his private pension. Sad, but true. I was just wondering if he could continue saving into his private pension without touching the pension pot.
    In your first post you were asking about whether the untouched pension would be taken into account as savings if your husband were in receipt of means tested benefits.

    The link says

    If you (or your partner) are under the qualifying age
    for Pension Credit


    If you (or your partner) are under the qualifying age for Pension Credit, and you do not take any money from your pension pot, then it will not be taken into account when your benefit entitlement is worked out.


    You are now asking whether your partner can continue to contribute to a pension while on means tested benefits.

    He can do but with regard to tax relief, if he has no relevant earnings the amount he can contribute will be limited to £2880 (net) per annum.

    http://www.rossmartin.co.uk/private-client-a-estate-planning/income-losses-claims-reliefs/1034-relevant-earnings-for-pensions-purposes
    • venison
    • By venison 22nd Apr 17, 10:14 PM
    • 1,220 Posts
    • 1,305 Thanks
    venison
    Thanks for the info and links xylophone. I read the link you included, but I am still very confused!

    My husband is 55 and unfortunately, only has a few hundred pounds in his private pension. Sad, but true. I was just wondering if he could continue saving into his private pension without touching the pension pot.

    Does an untouched pension pot count as "savings" even if the money is not accessed?
    Originally posted by sweetbutternut
    An untouched private pension DOES NOT COUNT AS SAVINGS
    Doomed I say we're all doomed.
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