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    • DoshDabbler
    • By DoshDabbler 7th Mar 18, 10:29 PM
    • 2Posts
    • 0Thanks
    Possible gift to a benefit recipient
    • #1
    • 7th Mar 18, 10:29 PM
    Possible gift to a benefit recipient 7th Mar 18 at 10:29 PM
    Has anybody here got experience of receiving a monetary gift, while on means-tested benefits?

    I understand that the "capital limit" of £16,000 means that the recipient immediately loses their benefits, and that he must live on the capital for a few years. He can however re-apply for benefit as soon as his capital falls below £16,000.

    I was wondering if the freedom from the restrictions was in any way beneficial, for example by making it easier to get a job, find somewhere else to live, or just making life better?

    Alternatively, were there problems. For example, did the rules about not deliberately depriving oneself of capital make the process of re-applying difficult?
Page 1
    • Ames
    • By Ames 7th Mar 18, 10:57 PM
    • 16,978 Posts
    • 29,764 Thanks
    • #2
    • 7th Mar 18, 10:57 PM
    • #2
    • 7th Mar 18, 10:57 PM
    Having money in the bank makes things easier in the same way it does for everyone else.

    Spending will be scrutinised when reapplying. The claimant could be deemed to still have the money if it's decided they spent it in order to claim benefits.

    Longer term if coming off 'old' benefits means that the new claim has to be for universal credit they could be a lot worse off over time as UC tends to be less than old benefits.

    All the above only applies to means tested benefits, for contribution based benefits or DLA/PIP/AA or tax credits savings don't count anyway.
    Unless I say otherwise 'you' means the general you not you specifically.
    • Penitent
    • By Penitent 8th Mar 18, 11:42 AM
    • 2,379 Posts
    • 7,074 Thanks
    • #3
    • 8th Mar 18, 11:42 AM
    • #3
    • 8th Mar 18, 11:42 AM
    If they came off benefits completely, they also wouldn't get their NI stamp paid during that period, which may affect their pension entitlement.

    They also still wouldn't be totally free, in that they'd have to very careful about what they spent the money on to avoid being accused of DoC when they reapply.

    If you want to help someone on income-based benefits, it might be more beneficial to buy them stuff they need or whatever treats they can't afford themselves, rather than giving them a lump sum.
    • pipkin71
    • By pipkin71 8th Mar 18, 12:44 PM
    • 19,023 Posts
    • 85,830 Thanks
    • #4
    • 8th Mar 18, 12:44 PM
    • #4
    • 8th Mar 18, 12:44 PM
    When I was in receipt of ESA, there was never any issue over the monetary gifts I received, as they were gifts. The only interest the DSS had was when I went over the limit of £6.000 but benefits were then reduced accordingly.
    There is something delicious about writing the first words of a story. You never quite know where they'll take you - Beatrix Potter
    • Afraid of Kittens
    • By Afraid of Kittens 8th Mar 18, 7:59 PM
    • 27 Posts
    • 20 Thanks
    Afraid of Kittens
    • #5
    • 8th Mar 18, 7:59 PM
    • #5
    • 8th Mar 18, 7:59 PM
    A cash gift is disregarded as income. If it is left in a bank account then it automatically gets treated as capital - no disregard.
    • DoshDabbler
    • By DoshDabbler 9th Mar 18, 3:17 PM
    • 2 Posts
    • 0 Thanks
    • #6
    • 9th Mar 18, 3:17 PM
    • #6
    • 9th Mar 18, 3:17 PM
    Lots to think about - thanks everybody.
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