h/b and savings!!

dandare

hey all, after a few work/personal upheavals i've started claiming h/b. i work s/e and my earnings have been meagre this last year so entitles me to h/b. in my haste to get h/b set up before i got too far behind in rent i never included my isa savings. i intend to notify them asap about this. will this cause me problems, i don't want to be accused of fraud!!! i notice savings under 16000 are allowed and a sliding scale over 6000?affects the award. i have about 9000 in my isa. does anyone know how it'll affect %wise the award any other advice greatly appreciated.
dan

tom9980

after 6k you normally lose £1 for every £250 over that limit at £16k you dont get any benefit at all. Your about 3k over so you lose about £12 per week.

Tell them today and you wont get into any trouble.

dandare

just spoke to them and they told me the count 65p in every pound over the 6000 limit. guess my h/b may be getting slashed!!hmmm

suelees1

They've give you incorrect info and Tom is right - you lose £1 pw from your benefit for each £250 or part thereof over £6K/under £16K. If you want to spend any of it you can't deprive yourself of capital to gain benefit but you can spend within reason - just keep your receipts.

The 65p in each £1 they mention comes in when your earnings are over what the law says you need to live on (after earnings disregards). You'd actually have to pay this towards your weekly rent if you have 'excess' income. This is in addition to 20p in every £1 towards your council tax.

real1314

To be precise about this:

1. You are treated as having an income of £1 per week for every £250 or part of £250 you have over £5999. £9k would be regarded as equating to an income of £13 (£8999 would be £12).

2. The total income you have is then compared to the allowed income amount for your circumstances. Anything over your allowed amount is taken off your HB at 65p in the £1 (or 65%).

So, if you're already over your allowed amount, you'll lose £12 x 65% = £7.80. You'll also lose £12 x 20% from your council tax benefit = £2.40.

dandare

ok thanks for the replies folks, it's reassuring to get the correct advice. i'm heading in to see them with the details today.
so from my award, as said i'm s/e photographer. i supplied my accounts from jan this year but the claim only started mid aug. £37.17 is what they have calculated as my ave. earnings against £60.50 the gov says is needed to live. so given it should be a £1 for each £250 totalling £13 per week extra income for me that should still keep me under the threshold and entitled to help with my rent?
thanks again, i guess ye all know how hard it is to get straight answers from the housing.
ta
dan

dandare

also i owe out about £1000-1500 to family and friends they don't need it right now and are fine for it to gather interest in my isa knowing they can have it in a matter of days if needed and if iceland doesn't implode. is this deductible?