Council tax benefit anomaly

allanm_2

I was putting details into the entitled to website and if I enter £16,001 for savings I am not entitled to any council tax benefit.

However if I enter £15,999 for savings, I am elegible for £9.44 per week council tax benefit.

So could I get done for deprivation of capital if I withdraw £2 from my savings and spend it on a half pint of beer and then claimed council tax benefit?

SHIPSHAPE

allanm wrote: »

I was putting details into the entitled to website and if I enter £16,001 for savings I am not entitled to any council tax benefit.

However if I enter £15,999 for savings, I am elegible for £9.44 per week council tax benefit.

So could I get done for deprivation of capital if I withdraw £2 from my savings and spend it on a half pint of beer and then claimed council tax benefit?

No, but you would be getting done for spending two quid on half a pint of brew.

It's surely not £4 a pint nowdays?

(I rarely drink)

CIS

So could I get done for deprivation of capital if I withdraw £2 from my savings and spend it on a half pint of beer and then claimed council tax benefit?

Technically yes - you are deliberately reducing capital in order to claim CTB.

[Deleted User]

Can you buy something legitimate that you could use your savings for and produce a receipt if required? Like tax your car or buy a new kettle or washer?? (I don't know just guessing) :-)

Oldernotwiser

Wouldn't the interest on £15,999 put it back over £16,000 in a couple of days?

allanm_2

Wouldn't the interest on £15,999 put it back over £16,000 in a couple of days?

Not if it was cash under the mattress.

Jowo_2

There are no issues with someone applying for means tested benefits who spends their savings on ordinary living expenses. The regulations around deprivation of capital are there to prevent people from intentionally ridding themselves of their capital in frivolous ways, such as gifting money or transferring their property to their friends and relatives, for example.

I'm just surprised that being £1 under the 16k threshold would trigger such a generous CT rebate.

allanm_2

I'm just surprised that being £1 under the 16k threshold would trigger such a generous CT rebate

So was I.

.

zagfles

Jowo wrote: »

There are no issues with someone applying for means tested benefits who spends their savings on ordinary living expenses. The regulations around deprivation of capital are there to prevent people from intentionally ridding themselves of their capital in frivolous ways, such as gifting money or transferring their property to their friends and relatives, for example.

I'm just surprised that being £1 under the 16k threshold would trigger such a generous CT rebate.

If the OP would have been entitled to full CTB but for savings, then with 16001 he gets nothing because that's a cliff edge. But with 15999 he gets an assumed "tariff income" of (15999-6000)/250 per week ie £40, or £2080 a year.

CTB is withdrawn at 20% of income over the AA so his savings will reduce CTB by 2080*0.2 = 416 at most, so if council tax is 1200 then he'd get 784 CTB a year ie 15 pw.

This will of course be less if he has other income above the AA.

And as you say there is no way anyone would get done for deprivation of capital for spending capital at a rate of less than the benefits which would have been received but for the savings (ie £9.44 a week in this case). That's what they expect you to do with the capital!