Disabled and savings - urgent help

Zena66

Can anyone tell me the maximum amount of savings someone on DLA, Incapacity Benefit and Income support is allowed to have please?

I know on DLA you can have up to £16,000 and I know on Income Support you can have up to £6,000 but I don't know what the case is if you're on IB and IS. I'm wondering if it's only £3,000?

Tally-Ho_2

Hi,

DLA and Contributory Incapacity Benefit are not means tested, so you can have for example a million pounds and still claim. The only thing that can affect IB is an occupational pension over £85 per week.

Income Support being a mean tested benefit has a £6,000 lower ceiling for savings.

Tally

Zena66

PS; They also get Housing Benefit and Council Tax and I've a feeling that makes a difference

Zena66

Thanks for such a quick response Tally-Ho. I'm not sure what contributory based Incapacity Benefit is. The person was on IB, IS, Housing Benefit and Council Tax for a while but in the last 4 years has also been claiming DLA.

I've read on other websites that claiming IB, IS and Housing and Council Tax, you're only allowed up to £3,000 but they were posted elsewhere in 2007.

So now I'm not 100% sure if it's £3,000 or £6,000. I really need to know urgently which is the correct figure.

Jibbajabba

Income Support is the only means tested benefit in the original list.

Savings:
less than £6000 no effect.
between £6000 and 16000 will reduce I.S.
over£16000 will mean it is not paid at all.

If there is an entitlement to I.S. then HB/CT will be paid in full. If no entitlement to I.S then HB/CT can be paid on a low income basis if applicable but has to be applied for separately.

Zena66

I'm assuming that the £3,000 limit must have been upped to £6,000 in the last couple of years then as I've seen plenty of sites that say £3,000?

This is quite an urgent matter as if it is only £3,000 then I'm going to have to get rid of some. Was going to go for a pre-paid funeral plan which is £3,000 and pay it all at once, but if absolutely nothing (Housing Benefit, Council Tax, IB, IS, DLA) is affected, then I might just go for monthly payments.

advent1122

Zena66 wrote: »

This is quite an urgent matter as if it is only £3,000 then I'm going to have to get rid of some. Was going to go for a pre-paid funeral plan which is £3,000 and pay it all at once, but if absolutely nothing (Housing Benefit, Council Tax, IB, IS, DLA) is affected, then I might just go for monthly payments.

Then when you claim and they ask for bank statements as proof of savings you will be found out.

Zena66

They don't have over £6,000 yet

Oldernotwiser

Zena66 wrote: »

I'm assuming that the £3,000 limit must have been upped to £6,000 in the last couple of years then as I've seen plenty of sites that say £3,000?

This is quite an urgent matter as if it is only £3,000 then I'm going to have to get rid of some. Was going to go for a pre-paid funeral plan which is £3,000 and pay it all at once, but if absolutely nothing (Housing Benefit, Council Tax, IB, IS, DLA) is affected, then I might just go for monthly payments.

This could be seen as deprivation of capital and your benefits assessed as if you still had the money.

Zena66

Oldernotwiser wrote: »

This could be seen as deprivation of capital and your benefits assessed as if you still had the money.

Why? They'd only be paying it in one instalment as opposed to 12. There's nothing dishonest about that.

It's just that it's a huge chunk to pay out especially when the person desperately needs a new sofa and to decorate some rooms which won't leave them with much money anyway.

advent1122

Zena66 wrote: »

Why? They'd only be paying it in one instalment as opposed to 12. There's nothing dishonest about that.

It's just that it's a huge chunk to pay out especially when the person desperately needs a new sofa and to decorate some rooms which won't leave them with much money anyway.

So I have £20,000 in the bank, apply for a means tested benefit and then have a conservatory built costing £17,000.
Do you think the social will say "no problem"?