Incapacity benefit and lump sum

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  • josoph
    josoph Posts: 34 Forumite
    What if I buy a car and it is in my name? would that still be the same?
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  • sunnyone
    sunnyone Posts: 4,716
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    josoph wrote: »
    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?

    You cant have been on incapacity for just two years because ESA replaced IB much more than two yeas ago, you must therefore be on ESA and the rules are diffrent.
  • josoph
    josoph Posts: 34 Forumite
    I am on incapacity benefit as a link in claim.I had incapacity taken from me but appealed and won
    New to comping and loving it :j
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  • josoph
    josoph Posts: 34 Forumite
    sorry I should have explained that a bit more
    New to comping and loving it :j
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  • Dunroamin
    Dunroamin Posts: 16,908 Forumite
    josoph wrote: »
    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?

    As your pension is so small (below £85pw is the relevant figure) it won't affect your IB.

    Just to be clear, you don't claim any help with your rent/mortgage/council tax?
  • Dunroamin
    Dunroamin Posts: 16,908 Forumite
    josoph wrote: »
    What if I buy a car and it is in my name? would that still be the same?

    Why are you in such a hurry to get rid of this money?
  • pmlindyloo
    pmlindyloo Posts: 13,049
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    If I have understood everything correctly then your lump sum will not affect your Incapacity Benefit. Also your pension, since it is below £85 per week will not affect your IB either. So you will be able to keep your IB and your weekly pension.

    As far as I know your tax credits will not be affected either.

    The difficulty is that all people on IB are being transferred over to ESA. They will look at your case and decide whether you are entitled to ESA (and which group you are put into), or whether you should go onto JSA or whether you should come off benefits all together.

    When this happens it might mean that your lump sum that you received may be looked at.

    It is very complicated! My suggestion would be to speak to CAB (you will need a CAB where they have a Welfare and Benefits Advisor) and ask for some advice.
  • josoph
    josoph Posts: 34 Forumite
    Thankyou Lindylou your advice is very helpful.
    Dunroamin I do claim housing and council tax benefit.I am not in a hurry to get rid of the money.I am a single parent and thought it would be nice to get my daughter through her driving test and get her a car.As I am disabled it would be a great help to us both as we rely on friends at the moment.As she will be in untold debt when he goes to University,my helping her will ease a lot of the stress
    New to comping and loving it :j
    November wins Book,One Direction DVD
  • Mojisola
    Mojisola Posts: 35,551
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    josoph wrote: »
    Thankyou Lindylou your advice is very helpful.
    Dunroamin I do claim housing and council tax benefit.I am not in a hurry to get rid of the money.I am a single parent and thought it would be nice to get my daughter through her driving test and get her a car.As I am disabled it would be a great help to us both as we rely on friends at the moment.As she will be in untold debt when he goes to University,my helping her will ease a lot of the stress

    You could be the owner of the car but insure her as the main driver.

    Will she be living at home while at uni? If not, the car may not be best thing for her. Most unis have very strict rules about student parking and having a car can be a pain.
  • pmlindyloo
    pmlindyloo Posts: 13,049
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    josoph wrote: »
    Thankyou Lindylou your advice is very helpful.
    Dunroamin I do claim housing and council tax benefit.I am not in a hurry to get rid of the money.I am a single parent and thought it would be nice to get my daughter through her driving test and get her a car.As I am disabled it would be a great help to us both as we rely on friends at the moment.As she will be in untold debt when he goes to University,my helping her will ease a lot of the stress


    OK, this changes everything.

    HB and CTB are means tested benefits. As far as I know both your weekly pension and your lump sum will be taken into account for these benefits.

    If you spend it to claim these benefits then they will see this as deprivation of capital.

    Deprivation of capital gives rise to a great deal of discussion as to what would be allowed and what wouldn't.

    Is your daughter going to university near to you?

    If you haven't got a car already and since you are disabled then possibly paying for driving lessons and buying a car that wasn't hugely expensive might be OK.

    As someone else said google 'deprivation of capital' to read more about it.
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