housing benefit and savings

Arg

AsknAnswer2 wrote: »

It doesn't reward frivilious spending! That is what deprivation of capital is all about.

Yet it does reward frivolous spending.
Why scrimp and save when you're expected to see it drain away before you can claim benefits.Not only that but it lowers your chances of finding work after it or deal with an emergency.
Compare that to someone who spends whatever they have whenever they get it.

AsknAnswer2

1. A person can have savings. They can have up to £6000 savings before it affects means tested benefit, and up to £16000 before they stop being entitled to means tested benefit

2. A person can spend their savings and still be able to claim benefit, however if it is frittered away uneccesserily, benefit will not be forthcoming. If a person spends their savings unreasonably the state will not support them.

How, exactly is that rewarding frivilious spending?

dktreesea

AsknAnswer2 wrote: »

1. A person can have savings. They can have up to £6000 savings before it affects means tested benefit, and up to £16000 before they stop being entitled to means tested benefit

2. A person can spend their savings and still be able to claim benefit, however if it is frittered away uneccesserily, benefit will not be forthcoming. If a person spends their savings unreasonably the state will not support them.

How, exactly is that rewarding frivilious spending?

Regardless of how money is spent, the bizarre thing about receiving benefit is that one can qualify for the maximum amount of housing benefit, even if one has £15,999 in the bank. Working tax credit isn't even means tested. Should the state even be supporting people who have even £6K in the bank, let alone £16K?

Sure, the system is what it is, and to my mind anyone who is entitled to a benefit, be it housing benefit, pension top up, disability allowance, WTC, should claim that benefit. But one does wonder at times how we can go on supporting people who do have sufficient savings to live on. What's wrong with requiring people to use up their savings, including to retire their debts, before resorting to other taxpayers to pay their bills?

pompeyrich

AsknAnswer2 wrote: »

1. A person can have savings. They can have up to £6000 savings before it affects means tested benefit, and up to £16000 before they stop being entitled to means tested benefit

2. A person can spend their savings and still be able to claim benefit, however if it is frittered away uneccesserily, benefit will not be forthcoming. If a person spends their savings unreasonably the state will not support them.

How, exactly is that rewarding frivilious spending?

I think the point is that it seems better to spend frivilously in the first place, enjoy life, not bother to save anything as then you will be able to claim.

Wee_Willy_Harris

pompeyrich wrote: »

I think the point is that it seems better to spend frivilously in the first place, enjoy life, not bother to save anything as then you will be able to claim.

I suppose it depends how you view the benefits system. If you view it as a god given entitlement and something to aspire to, then you may be right. If, however, you view it as a safety net to help you in times of need, maybe not. Most people with the determination to save large amounts of money will apply the same determination to avoiding the need for benefits through employment. Their savings will, of course, be most beneficial to them.

I can only assume that you are not among their number.

pompeyrich

Wee_Willy_Harris wrote: »

I suppose it depends how you view the benefits system. If you view it as a god given entitlement and something to aspire to, then you may be right. If, however, you view it as a safety net to help you in times of need, maybe not. Most people with the determination to save large amounts of money will apply the same determination to avoiding the need for benefits through employment. Their savings will, of course, be most beneficial to them.

I can only assume that you are not among their number.

I am strongly in the second camp and only wish the benefit system was a safety net and not the lifestyle choice it now seems to have become. However as this section of the board is only to discuss peoples "entitlement" to benefits I will leave the matter there.

Wee_Willy_Harris

pompeyrich wrote: »

I am strongly in the second camp and only wish the benefit system was a safety net and not the lifestyle choice it now seems to have become. However as this section of the board is only to discuss peoples "entitlement" to benefits I will leave the matter there.

Then you should enjoy the fruits of your prudence while trying not to be too envious of those who will not..