Housing Benefit/LHA and savings?

MandyG_3

This is just a question casue i don't understand these kind of things

It says you cant usually get housing benefit if you have savings of more than £16 000, does this mean you are allowed to have £15000 and still claim housing benefit/LHA?

I always thought if you had that much money the council would make you use that and actually pay the rent until your savings had run out - am I wrong?

are you allowed to have this kind of money in a saving account as an emergency fund , so to speak, and still claim Housing benefit?

something seems wrong with that to me

TOBRUK

When you have the forms you have to declare EVERYTHING - any savings even if they are in an ordinary bank account.

You are allowed £6000 until they reduce your money - I believe it is £1 for every £250. If you have £5,500 you have to let them know.

pandaspot

as torbruk says its £1 for every £250 over £6000.

you have to declare all capital you have, that includes savings, property, stocks, shares, money under the bed...everything.

Jowo_2

The means testing to calculate housing benefit (local housing allowance) doesn't just factor in savings - it includes things like property, land, investments. I don't know if this guide is fully up to date but it shows some general principles

Capital

Your capital includes savings and investments held by yourself in any form (for example, bank and building society accounts, investment trusts, and shares) from any source (for example, inheritance, redundancy payments, and irregular payments from a charitable or voluntary source). It will normally also include the net sale value of land and housing that you do not occupy, after deducting 10% for expenses of sale.


http://www.dwp.gov.uk/publications/specialist-guides/technical-guidance/rr2-a-guide-to-housing-benefit/working-it-out/income-and-capital/#aa28

karenx

Im sorry but who has 15k in an emergency fund account. What emergency is likely to happen that you suddenly need 15k for?

nannytone_2

if you have 15k in an emergency fund....the fact you need to claim benefits is an emergency!

MandyG_3

nannytone wrote: »

if you have 15k in an emergency fund....the fact you need to claim benefits is an emergency!

Exactly!

I don't even understand why they would let you have even 5000

Surely if you had thousands saved away then you should use that first instead of claiming

I just didn't understand what I read about housing benefit and having 16 000

Thanks for the replies

pandaspot

It's again one of those stupid rules

MandyG_3

if someone was to sell their house and they had £10 000 equity would that be classed as savings?

We are thinking of selling up as my husband cannot work due to illness now and we cannot afford our mortgage. We are looking into every option and one is getting LHA.

There may be £10 000 equity once estate agents are paid etc but would they let us keep that?

I have no problem at all spending it on rent and when it runs out then claim housing benefit, but we have 3 disabled children and we have to go to great ormond street hospital twice a year. That £10 000 would help out a lot and pay for quite a few trips down there.

TOBRUK

Are you getting help with mortgage interest payments?

MandyG_3

TOBRUK wrote: »

Are you getting help with mortgage interest payments?

no we have never had any help - just had to pay our mortgage every month since my husband became ill.

We were given the forms but i think we weren't entitled to any help as DH gets the wrong benefits or something.

we will be phoning CAB regarding the equity question. That extra money really would mean we wouldn't have to worry about finding the money for the hospital trip every year (sometimes twice a year)

thanks
x