would i be ripping offf the state?

mymoney69

can anyone please tell me if i was to put £30,000 into premium bonds do i have to declare this.I am currently claiming income support,mortgage interest and coucil tax benefit,but i am just about to sell my flat and this is how much equity i will have.
Dont get me wrong i am not trying to rip off the state but at the same time i dont want to have to live off this money as it will soon go.I am desperately looking for work and am aware that then i could claim wtc.Is there any way round me not having to live off my savings without getting in to deep water with the social security. i am a single parent and probably wont have this sort of money ever again. Any suggestions please?

SMC_2

If you are on Income Support you cannot have savings of more than £6,000 your income support will be reduced and if you have more than £16,000 you cannot claim it at all. So if you have £30,000 you are not entitled to IS.

Best idea if you do have that money is put it in a pension as that is not classed as savings.

mymoney69

thanks for the prompt reply. I dont know anything about pensions,if i did as you suggested would i be able to access that money at all?

SMC_2

No you wouldn't be able to access the money. You can keep up to £6,000 without it affecting your benefit but if you want to stay on IS and no live off the £30,000 then a pension is the only way I know of you keeping it.

Maybe others on here will have other ideas.

Scarlett1

mymoney what do you intend to do for a roof over you're head once you sell the flat ?

Once you move you will have to inform IS that you have a new change of address as well as inform them that you dont need mortgage assistance aswell.

You will be expected to live off you're savings, you cannot hide £30,000 and if you spend it on luxuries it will be considered depreciation of capital and you will lose all financial assistance from the state.

Are you thinking of renting and claiming housing benefit, think again as this will be classed as benefit fraud if you have intentionally sold you're property with a view of claiming housing benefit on another property.

The DSS have ways and they will find out any monies that you dont declare, as soon as they get a whiff of you selling a property they know that you will come out of with equity, they also have a right to have a look in you're bank account without you knowing.

Also as you being on IS know that every year you have to fill in a form to update you're claim and have to declare any savings, you will sign a declaration that if you are found to be bending the truth you will be prosecuted.

Not that Im saying you intend to commit benefit fraud, but as soon as £30,000 hits you're bank account you are no longer entitled to benefits

flossy_splodge

I agree with the comments already posted. Benefits agency DO find out about EVERYTHING!! Even tax sheltered money eg ISA's are counted as they consider it to be money you COULD use to live on. WHy sell? I would have thought it might be worth looking at other routes first for all the reasons mentioned. Once that money is released to you, you're stuffed! Metaphorically speaking of course. We have far more joined up government than many people realise, sweeps are done routinely of ALL financial institutions to check who has what money where. Good Luck.:eek:

hjb123

Your income support will be affected when you get that money - where are you going to be living? Even if the money is in preimum bonds I would of thought that you would still have to declare it.

It would be easier and better all round if you declared the money - people that defraud the system make it harder for the people that genuinely claim

pink_phantom

Could you not invest the money in perhapse starting a business or something that will remove you from having to rely on benefits?

If you have some money then you could apply for start up grants etc etc.

seven-day-weekend

Why don't you wait until you are not on benefits before selling your house, then you can keep all the money!

shellsuit

Why don't you just cancel all your claims and live off the money until you get a job?

If you are not claiming anything, nobody can touch you and you are free to do whatever you like with the money?

AGB863

Premium bonds are classed as capital - as they can be cashed in at relatively fast speed. They come under the section as "savings".