How fast could I spend my savings before a claim?

pastmybest

dmg24 wrote: »

No, a spending spree will do you no favours at all.

If you search 'Intentional Deprivation of Capital' there are many posts on the subject.

Had a search but nothing coming up to tackle the part of the question which was at what rate could I spend without getting in trouble?

Do you think I should call the Benefits Helpline (if there is one) and ask or is that flagging me up in their syetem for closer scrutiny?

Oldernotwiser

kaya wrote: »

Give (ahem) a large lump of money to your grandchildren, put it in an account that they cant access for 20 years which you have control over, problem solved

Proceed to gaol for benefit fraud; what a good idea!

pastmybest

Oldernotwiser wrote: »

However,treating others extravagantly just to get rid of your capital will have the effects described. and isn't to be recommended. As has been pointed out, you're allowed to have £16,000 of savings and claim benefits, which hardly comes under the heading of "having very little", particularly if you've updated your home and car before you get to that point.

At 61 and having earned income well into the higher rate tax levels until illness truck 20 + years ago I paid a lot of tax but also saved hard. The state are lucky that I have acted extremely sensibly and if I had not saved I undoubtedy would of been claiming a very long time ago.

I am not about to break any law whether of the land, or moral laws, but was merely asking for advice at what rate my capital could be used without getting in trouble. As my 9.11 post says my intentions are to replace my 10 year old car with one that is a couple of years old and will be the last car I will ever be able to afford, to have a final holiday abroad for the first time is 15 years, or a week or two in this country which would be the first time for 14 years. To replace a three piece suite 20 years old, bed 15 years old carpets 15 years old and so on.

I totall resent your use of the word "extravagent" as I never said this. Treat my kids and their wifes is 2 x £100 presents of thing they have always wanted = £400 and grandkids £100 each on something.

So does all this make me extravagent?:mad:

bestpud

In ONW's defence, your original post did suggest you were talking about rather more than a £100 here and there!

The problem with the net is we don't know you and have no background information, which is fine, but can cause problems if posts aren't explicit.

Your post was an even bigger 'problem', potentially, as you were bordering on something illegal! That is why people have responded in this way. MSE is not about helping people commit fraud and your thread would no doubt be removed if the powers that be thought that was happening.

It isn't happening of course, in your case, but nobody knows that until you tell them.

I hope you see where we are coming from?

JessicaF_2

nm8553 wrote: »

PC claims are currently (from my experience at least) running at three to four months to process.

From my reading the normal savings limits still apply to HB/CTB though even if you do get Pension Credit

This is incorrect. If you receive pension credit (guarantee) then you are automatically passported to HB/CTB - the regulations allow the pension credit assessment to apply - not the normal HB/CTB.

To the OP - please check your PC situation and seek advice from someone.

Jess

dmg24

As others have said, no one will object to normal spending, replacing essential items, a normal holiday etc. You will get into trouble if you start going on £10K holidays, giving the kids a few thousand, and the next day submitting a claim.

Had you already been claiming, then there is a calculation on how quickly notional capital depreciates, and it is very slowly! So I would definitely take advice (and get it in writing) before making any big purchases.

pastmybest

bestpud wrote: »

In ONW's defence, your original post did suggest you were talking about rather more than a £100 here and there!

The problem with the net is we don't know you and have no background information, which is fine, but can cause problems if posts aren't explicit.

Your post was an even bigger 'problem', potentially, as you were bordering on something illegal! That is why people have responded in this way. MSE is not about helping people commit fraud and your thread would no doubt be removed if the powers that be thought that was happening.

It isn't happening of course, in your case, but nobody knows that until you tell them.

I hope you see where we are coming from?

I fully understand but I am in poor health and I sometimes don't know until after writing it could of been better put but (not saying you) some posters need to understand and give other posters the benefit of the doubt They may be like me and it is not good getting confused, which I do, and have to pick my day and even the hour in that day before I can even turn on my PC now.

pastmybest

dmg24 wrote: »

As others have said, no one will object to normal spending, replacing essential items, a normal holiday etc. You will get into trouble if you start going on £10K holidays, giving the kids a few thousand, and the next day submitting a claim.

Had you already been claiming, then there is a calculation on how quickly notional capital depreciates, and it is very slowly! So I would definitely take advice (and get it in writing) before making any big purchases.

Again thanks.:beer:

When you have never looked into these things it is a steep learning curve especially in my state of health. A £10,000 holiday giving kids £1,000's -- I wish>

Oldernotwiser

pastmybest wrote: »

At 61 and having earned income well into the higher rate tax levels until illness truck 20 + years ago I paid a lot of tax but also saved hard. The state are lucky that I have acted extremely sensibly and if I had not saved I undoubtedy would of been claiming a very long time ago.

I am not about to break any law whether of the land, or moral laws, but was merely asking for advice at what rate my capital could be used without getting in trouble. As my 9.11 post says my intentions are to replace my 10 year old car with one that is a couple of years old and will be the last car I will ever be able to afford, to have a final holiday abroad for the first time is 15 years, or a week or two in this country which would be the first time for 14 years. To replace a three piece suite 20 years old, bed 15 years old carpets 15 years old and so on.

I totall resent your use of the word "extravagent" as I never said this. Treat my kids and their wifes is 2 x £100 presents of thing they have always wanted = £400 and grandkids £100 each on something.

So does all this make me extravagent?:mad:

I'm very sorry that you read my post the wrong way, but you did talk about going on a "spending spree" and also about having "very little left" when you would be able to have £16,000 in savings !

I never actually said that you were being extravagant but that "treating others extravagantly just to get rid of your capital" would be frowned on, as it will. As this is not part of your plans then there should be no problems.

I'm quite prepared to chalk this up to a misunderstanding on your part but it's always worth remembering that when posting on a public forum terms like "spending spree" will have very different meanings for different people.

pastmybest

oldernotwiser my apologies.
:beer: