Savings Limits

Sylvester

mum2one wrote: »

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

Yes, she's not had the money and is unsure as to when she will do, but we are possibly talking within the next few months. Everything has been signed, it's just waiting now for all the lawyers etc to finalise it all, but I know this can take a fair while.

She won't have any savings of any note. As far as i'm aware she lives by her income support money each week, until she's ready to return to work.

bigbill wrote: »

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.

I'm guessing she will still receive income support after receipt of inheritance - I'm sure the £7,500 is subject to tax as well, so she'll get slightly less...

I'll try and find out when I see her later how much debt we are talking. Her idea was to delete her debts, which I thought would be seen as reasonable whatever they were.

Sylvester

Thanks for all the advice. Her money has come through and she mis-understood what she was getting now and what she was getting later, so she has 27k in her bank account today and not 7.5k, so she has contacted the benefit people and is awaiting a call from her advisor so she can have some help 'signing off' as it were.

JS477

alwaysonthego wrote: »

£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.

Can I just ask what criteria the DWP has used to determine that £250 can earn you £1? Even the best current interest rate cannot get you that.

Ta

Golden_Anemone

That's because it is not designed to represent interest. It represents an expectation that an individual who relies on public funds for means tested income ought to make a small contribution from their savings where thay have them.

JS477

Golden_Anemone wrote: »

That's because it is not designed to represent interest. It represents an expectation that an individual who relies on public funds for means tested income ought to make a small contribution from their savings where thay have them.

I see, I asked because on my councils website with regard to CTB it says the following with respect to having savings:-

"If you and your partner are under 60 you can have up to £6,000 capital and savings before it affects your benefit entitlement and for every £250 capital and savings you have between £6,000 and £16,000 we will use £1 as income when we work out your entitlement to benefit"

So are they assuming that for every £250 you have between £6000 and £16000 you get £1 as "income"? If so how do they work out that £250 gets you £1 in income?

Thanks again

Golden_Anemone

JS, I think this is one instance where the council have tried to use simple language but lost a nuance along the way. The precise term for this type of assumed "income" is Tariff Income. The amount is laid down in legislation. You'll find more information about it in the DMG - paragraph 29762 and Appendix 3.