Savings limit on Incapacity Benefit, DLA, Mobilit...

[bobmoat]

My partner and i have recently seperated and i have agreed to buy her out of the house. Effectively giving her half the equity which works out at £16K. I'm concerned that this amount may effect the benefits she receives. She has been registered disabled for almost ten years, receives Incapacity benefit, Disabled living allowance, has a car on Mobility and has recently become eligible for tax credits. She also works part time. We were not married, have no children and have split amicably hence my concern. I have heard that there is a limit of £12K, any clear advice would be greatly appreciated. Thanks

[cattie]

There are no capital limits for IB & DLA & as far as I know wtc. With wtc any interest from savings is counted as income, but the capital itself doesn't count.

If she has £16k then she will not be able to claim any means tested benefits. Under £6k means tested benefits not affected, over £6k up to the cut off point of £16k means tested benefits are reduced by £1 for every £250 capital a claimant has. I believe working tax credit (wtc) is a means tested benefit.

[Pepzofio]

Originally Posted by cattie

There are no capital limits for IB & DLA & as far as I know wtc. With wtc any interest from savings is counted as interest, but the capital itself doesn't count.

If she has £16k then she will not be able to claim any means tested benefits. Under £6k means tested benefits not affected, over £6k up to the cut off point of £16k means tested benefits are reduced by £1 for every £250 capital a claimant has. I believe working tax credit (wtc) is a means tested benefit.

Just to clarify re WTC, the first paragraph is correct - although WTC is technically means tested (in that it is affected by your income) it is not subject to the tariff income rules mentioned in the second paragraph.