Benefits Question

jubro

alwaysonthego wrote: »

If someone has substantial savings that would affect any entitlement to benefits and they were at risk from redundancy then it is sensible that person does not go and pay a lump sum off his mortgage etc

Doesn't Martin regularly advise people to use lump sums to pay off their debts rather than keep them as savings? Generally because people are charged more interest on their borrowing (be that a mortgage or any other form of borrowing) than they receive from their savings.

NASA_2

The DMG says that paying off a non-immediate debt is likely to be deprivation of capital. I've posted the relevant section on here before. It can be a bit harsh but the decision likely to go against the claimant.

alwaysonthego_2

jubro wrote: »

Doesn't Martin regularly advise people to use lump sums to pay off their debts rather than keep them as savings? Generally because people are charged more interest on their borrowing (be that a mortgage or any other form of borrowing) than they receive from their savings.

Yes it is a very sensible thing to do, if you are not doing it in order to claim means tested benefits.

alwaysonthego_2

ESA wrote: »

The DMG says that paying off a non-immediate debt is likely to be deprivation of capital. I've posted the relevant section on here before. It can be a bit harsh but the decision likely to go against the claimant.

You should ask if it can be made a sticky on here because not many people realise and it causes big arguments on here when we try and say otherwise.

NASA_2

It was part of a long thread so making it a sticky probably wouldnt make much sense to people. It might be worth creating a thread though if its thought worthwhile enough. I've quoted it again below.

Have people deprived themselves of capital
Meaning of deprive
29815 The meaning of deprive is not a question of law and should be given its normal

every day meaning

1. So claimants have deprived themselves of capital if they no

longer have it even if they use it to

1.

get

1.1

other capital2 or
1.2 personal possessions or

2.

pay debts.
1 R(SB) 40/85; 2 R(SB) 40/85