Savings Limits

Sylvester

Hi

Could someone please point me in the direction of a website with information about savings limits whilst on benefits.

The person involved is about to come into approx £7,500 inheritance.

They are currently claiming Income support with disability element and Housing/Council Tax benefits.

Around £2,500 of this will be used to pay off some debts immediately and the other £5,000 will be put into savings.

Many thanks

alwaysonthego_2

What are the debts?

It can be treated as notional capital if it is to pay off certain debts that are not urgent or priority,i.e she will be treated as still having it.

She would lose £10 per week of her IS, CTB and HB.

Sylvester

Barclays Bank (which is accruing interest).

Is that £10 total or £10 off of each?

Thanks

alwaysonthego_2

Sylvester wrote: »

Barclays Bank (which is accruing interest).

Is that £10 total or £10 off of each?

Thanks

£10 each; it is £1 per every £250 over £6000

She would be treated as still having the money as the DWP/LA would not see this as a priority debt.

Sylvester

Thanks for the info. I shall pass it on.

I know she is behind on some primary debts, such as water and gas, but only by a few hundred pounds (and she has the letters requesting payment)

Would these count as primary debts in the eyes of the DWP and when would she be able to start claiming full benefits again if she paid off Barclays Bank? I'm guessing if she pays them off and the DWP doesn't see them as primary, they would look at it as £5000 - the £2500 approx she paid, so once below £2500? My maths may be all over the place there.

I think her main concern is knowing the limits, what is classed as primary debts and when she can start reclaiming fully again as it's all very confusing for her and wants to be able to claim what she is entitled too at the same time as being 100% sure she's done everything right.

mum2one

I had a 8k payout in 2005, but paid off my loan and od. which was 3k, and I wasn't docked any money,

if the person has priority debts, water, and gas, if she enclosed copies of the bills with proof of the money and they had been paid, then shes being honest.

alwaysonthego_2

Any utility debts are priority debts.

She should consult the benefits agencies and ask for their advice before she pays any debts off.

Sylvester

mum2one wrote: »

I had a 8k payout in 2005, but paid off my loan and od. which was 3k, and I wasn't docked any money,

if the person has priority debts, water, and gas, if she enclosed copies of the bills with proof of the money and they had been paid, then shes being honest.

Yes, she'll have proof of the bills and i'll make sure she has proof of her payments for water/gas.

alwaysonthego wrote: »

Any utility debts are priority debts.

She should consult the benefits agencies and ask for their advice before she pays any debts off.

I'll suggest she contacts the benefits agency. I believe she gets on well with her disabilty advisor who can help her.

I'm not sure how long it will be until she gets the money, and neither does she, but I thought i'd ask now and get some kind of idea at what she needs to do etc.

Thanks for the advice.

Sylvester

Just thought of another thing...

She lives with someone, but not as a partner (recognised by DWP) and the bills are likely to be in both of their names.

Will she only be classed as liable for 50% of the water and gas debts and will this affect the other householders benefits even though they are not partners? I believe that he may be on the same benefits as her, but as another single person.

mum2one

If she hasn't had the money yet, then in the nicest of ways I'd leave it as thou she hasn't had the payment, not that your hideing anything, but until the money is in their hand, then its fresh air, like you say its a good idea to rough idea of whats what,

The other thing I thought of, have they any saving at present time, That maybe a stupid question with her having bills but just one question ur be asked.x

bigbill

If they keep the full £7,500 savings they will lose £7 weekly from their Income Support, HB & CTB will NOT be reduced if they still get some Income Support after the £7 is reduced?

I would say any debt that is costing you more in interest than the amount of interest you can get on the savings would be allowed to be paid off in full.