premium bonds and benefits

COCO-POPS_3

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Unity

COCO-POPS wrote: »

hi, just asking on behalf of a friend who dosen't have internet access.
are premium bonds classed as savings for the purposes of claiming benefit ?

friend has premium bonds which she purchased few years ago, not a massive amount, but has a little savings too, and is unwell enough to work at this present time, and is needing to go onto income support.
premium bonds are £1000, and savings just over £5000, which would mean she is just over the savings limit to claim, if they are classed as savings
thanks

Sorry to be the bearer of bad tidings but - yes, they are classed as savings - because of course, that's what they are, even though you don't accrue interest with them.:embarasse

seven-day-weekend

I don't know the answer to this, but would guess that they were counted as savings, as you can cash them in at any time.

If I'm wrong I'm sure someone will correct me.

If her savings are only just over the £6k, she can still claim, but her benefits will be reduced. Once her savings are under £6, she will get the full amount.

[Deleted User]

COCO-POPS wrote: »

hi, just asking on behalf of a friend who dosen't have internet access.
are premium bonds classed as savings for the purposes of claiming benefit ?

friend has premium bonds which she purchased few years ago, not a massive amount, but has a little savings too, and is unwell enough to work at this present time, and is needing to go onto income support.
premium bonds are £1000, and savings just over £5000, which would mean she is just over the savings limit to claim, if they are classed as savings
thanks

I`m afraid they do count as they are effectively just another form of saving
the good news is that between £6,000 and £16,000 benefits are only reduced by £1 for every £250 over the 6k until you reach 16k when all means tested benefits would stop

Francesanne

COCO-POPS wrote: »

hi, just asking on behalf of a friend who dosen't have internet access.
are premium bonds classed as savings for the purposes of claiming benefit ?

friend has premium bonds which she purchased few years ago, not a massive amount, but has a little savings too, and is unwell enough to work at this present time, and is needing to go onto income support.
premium bonds are £1000, and savings just over £5000, which would mean she is just over the savings limit to claim, if they are classed as savings
thanks

They do count as savings unfortunately. My elderly Mum has the grand sum of £3.00 in P.Bonds but they had to be declared when she was claiming Council Tax benefit.