benefit means testing for savings

captain_nugget

There's some great info on this thread so i thought i'd bump it a little with one question. I'm presuming a unit trust would be treated in the same way as capital?
I'd be loathe to cash in when the prices are rock bottom but as I've just been given notice of redundancy its something I need to be aware of.

fionnsda

ceridwen wrote: »

I see Jules and I cross-posted.

So - thats some clarification. What I am wondering is whether the DWP asks for recent bank statements - ie would ask at month 7 for the last however-many-months-worth of bank statements. I had the vague idea from somewhere that they ask for the last 4 months worth??????

So - wondering whether one needs to spend any redundancy money in the first 2 months of unemployment - and then give them those bank statements for the months 3 onwards if one is unemployed long enough to end up on means-tested benefit

i was made redundant and got redundancy money and good people from the local benefits office came in to see the workers and give advice. the decision maker of this office did say that they only look back 6 months and i'm assuming thats from when you make a claim for income support.
i also noticed on the jobseekers form in the section relating to income based job seekers that they ask you if you had more than £5500 in the last 6 months and if yes bring in your bank statments.

so if this is the fact can wee not just spend spend spend wait 6 months and then claim income support!!

regards
keith

ceridwen

I do think it would be good to be totally clear on this. Certainly under the present rules - over £6,000 capital and they start deducting benefit - there is an instant problem if one puts money to one side each month in a bank account to cover bills - as that money would count as "capital" - even though it was being set aside for regular bills. Hence - one reason why I personally have got all possible bills divided up and spread out as evenly as possible across the year (I'd rather pay bills money in advance of when necessary than have it counted as savings - when it obviously isnt). This isnt possible with all bills though - for instance one has to pay the insurance bill for ones house/contents as a lump sum once a year in order to get the best rates possible (as most insurance companies charge extra for paying in installments - by monthly direct debit). So - the month before my £200 yearly insurance bill - I would have about £180 in my bank account that would look as if it was savings - but it wouldnt be for instance.

6 months look-back time - that DOES look like they look back to the day one started out claiming in the first place....further clarification on this would be useful....

On the "spend spend" front - I tend to get rather resentful (and I guess I'm far from the only one) that the only way to be sure and certain that I am the one who gets the use of my hard-earned money is to spend it as fast as it comes in. Personally - I would prefer to know that it was "safe" to save it - as it couldnt be taken off me in the event of unemployment/having to claim benefit happening. The trouble is that whilst there is that risk - then I have to spend it all instantly to protect it from being treated as "capital" and losing income as a result!!!!! I dont want to spend/spend/spend - I dont agree with spending money for the sake of it. Personally - I just want to put whatever spare income I have into savings - just in case I ever need it - but, in actual fact, I expect those savings to go to charity when I die (so the point of saving it, as far as I am concerned, is the mental security of knowing its there just in case I myself need it). So - how daft is that that I feel forced to either spend it all NOW or give it away NOW? I could understand - and totally agree - if I were wealthy. However - I am just an ordinary person in the street on a low salary (ie not much more than National Minimum Wage).

fionnsda

ceridwen wrote: »

6 months look-back time - that DOES look like they look back to the day one started out claiming in the first place....further clarification on this would be useful....

i agree, we must get this clarified!! on the income support form http://www.dwp.gov.uk/advisers/claimforms/a1_print.pdf it does say if you had more than £5500 in the last 6 months you must provide statments, i can only go on what it says,if you paid off your morgage as soon as you got your redundancy and made sure 6 months came and went before claiming income support it seems your doing nothing wrong!!
somebody please clarify

regards
keith

bunny999

fionnsda wrote: »

i agree, we must get this clarified!! on the income support form http://www.dwp.gov.uk/advisers/claimforms/a1_print.pdf it does say if you had more than £5500 in the last 6 months you must provide statments, i can only go on what it says,if you paid off your morgage as soon as you got your redundancy and made sure 6 months came and went before claiming income support it seems your doing nothing wrong!!
somebody please clarify

regards
keith

This would be deprivation of assets and they would treat your claim as if you still had the money.

fionnsda

bunny999 wrote: »

This would be deprivation of assets and they would treat your claim as if you still had the money.

ok then this is asumming they know you had the assets which they proberly do anyway but they are only asking what you had in the last 6 months and in this scenario you paid off the morgage before the 6 months starts!!

ceridwen

bunny999 wrote: »

This would be deprivation of assets and they would treat your claim as if you still had the money.

I follow the logic - BUT, if people have children and they then lose their home (as they werent allowed to use their redundancy money to pay off the mortgage) - then Society has to pick up the tab, as they turn round and demand that the State houses them in a bed and breakfast or whatever - whilst they wait to be allocated Council housing! Then also - in fairness - childless people shouldnt be discriminated against - they also should have the right to use redundancy money to pay off the mortgage - even though the State doesnt give a darn whether they are housed or no.

real1314

Jules wrote: »

Social Security Agency and Employment Support Allowance

I think they may have exaggerated their access, or you have mis-interpreted it.
All bank, Building society accounts, and almost all other forms of investment are registered for tax purposes.
SSA and DWP have ways to match their claim details against the Revenue details of accounts and can then look at cases where there are mis-matches. They can then approach banks direct to obtain evidence of the accounts.

All afaik.

captain_nugget

Going back to savings, I've not actually been made redundant as yet. I've just been given notice that I'm at risk of redundancy, which I presume amounts to the same thing (i'm off work on full pay while they dot the i's etc).
Whilst I've not got loads of money, I don't want what I have to effect any benefits I might get.
Is it time to start emptying bank accounts now?

ceridwen

Probably - almost certainly - yes....