Compensation and Benefits?

manhattan

dmg24 wrote: »

manhattan,

Perhaps you could clarify what compensation it is that you are referring to? I am also guessing that it is the reimbursement of your Icesave savings.

Yes, it is compensation from the FSCS regarding Icesave.

I do not claim any means tested benefits at present, but was wondering what would happen if i did have a right to claim.

Mojisola

It wouldn't make any difference - you had the money before, you have the money back. You're in the same position.

captainkevos

manhattan wrote: »

I have asked this a while ago in one of my unrelated threads but didn't really get a certain response.
Do compensation payouts affect benefits?
If so, what benefits would be affected?
Thanks :cool:

Here's a direct quote from a letter which the DWP sent me in March 2007 :

"Further to your recent request, I write to confirm your entitlement to Income Support ended on 14/03/07. This entitlement ended due to your investments and capital exceeding the amount allowed of £16,000."
(This was money from my flat sale, which I then deposited in Icesave)

I'd dare say that the £16K has been through an annual review since then and may well be even higher now. I'd advise to ring your local Jobcentre to get an update from them. Only "means tested" benefits (such as Income Support) are included, AFAIK. Hope this helps anyhow....

dmg24

captainkevos wrote: »

Here's a direct quote from a letter which the DWP sent me in March 2007 :

"Further to your recent request, I write to confirm your entitlement to Income Support ended on 14/03/07. This entitlement ended due to your investments and capital exceeding the amount allowed of £16,000."

I dare say that the £16K was been through an annual review since then and may well be even higher now. I'd advise to ring your local Jobcentre to get an update from them. Hope this helps anyhow ....

The lower capital limit (when benefit entitlement starts to be affected) is £6K and the higher limit (when benefit entitlement ceases entirely) is still £16K.

healy

captainkevos wrote: »

Here's a direct quote from a letter which the DWP sent me in March 2007 :

"Further to your recent request, I write to confirm your entitlement to Income Support ended on 14/03/07. This entitlement ended due to your investments and capital exceeding the amount allowed of £16,000."

I dare say that the £16K was been through an annual review since then and may well be even higher now. I'd advise to ring your local Jobcentre to get an update from them. Only "means tested" benefits (such as Income Support) are included, AFAIK. Hope this helps anyhow....

Just to add there is not an annual review for the capital limits, in fact the previous capital limits applied for many years.

suelees1

manhattan wrote: »

Yes, it is compensation from the FSCS regarding Icesave.

I do not claim any means tested benefits at present, but was wondering what would happen if i did have a right to claim.

I don't understand - surely any money you've had isn't actually compensation as such but just savings you had with Icesave?!?!

Anyway whatever it's called, whether it's compensation or savings or just a lump sum then it's treated as any other form of capital.

The only type of compensation which is ignored (up to a point) relates to damages paid as a result of personal injury.

manhattan

suelees1 wrote: »

I don't understand - surely any money you've had isn't actually compensation as such but just savings you had with Icesave?!?!

No,
My savings were taken by the Icelandic government when they took over Icesave.

My savings are not there anymore as they dont have the money.

I am being compensated by the FSCS to the same amount i lost. The FSCS email states "compensation payout"

Conor_3

But the fact remains that when you get the payout, you will only be in the same financial position that you were before they went titsup. You are not going to be getting more than you had in savings.

Therefore although it's compensation, nothing has changed. You will still have the same assets.

manhattan

Conor wrote: »

But the fact remains that when you get the payout, you will only be in the same financial position that you were before they went titsup. You are not going to be getting more than you had in savings.

Therefore although it's compensation, nothing has changed. You will still have the same assets.

That is why i asked the question "does compensation affect benefits"

Yes i will be in the same financial situation but the difference is that i had "savings" that were taken by Iceland, and i am now receiving a "compensation" payout of the same amount.

I knew "savings" affected means tested benefits but wanted to know if "compensation" affects means tested benefits.

manhattan

I am not getting my savings back, i am getting a comp payout.