Savings & Housing Benefit

lins1979

Hi

I just wondered if anyone could offer some advice. My grandma is applying for housing benefit after my grndfathers death. She is just below the savings limit for being able to get housing benefit. After paying for his funeral she gave all her sons some money which took her below this limit. Is there any limit on the amount she is allowed to give away that will affect the councils decision on whether she can get help with her rent? As you the councils asks for copies of bank statements they will see this money has been withdrawn.

Thanks for any answers or pointers in the right direction.

TOBRUK

Hi lins1979, sorry for your loss. I think your grandmother may have a problem, as you have pointed out (I think you know) she has given away sums of money at this time which the DWP will find when looking at her statements!

Regarding 'the amount' she is allowed to give away - I don't think there is such a thing as a limit, an amount you are allowed to give away, although I may be wrong. I do think they will look upon this as deprivation of capital - as you say she is applying for a benefit just as she has gone below the limit to become eligible.

Caz3121

She will likely be ok with the money she paid out for the funeral but as above the money she has given away will likely be treated as she still had it and if this totals over £16k then this would impact means tested benefits

pandaspot

yeah the money that was given away is known as gifting and is considered deprivation of capital.

what income is she on now?

fluffymovie

Deprivation of capital is hard to prove however and the LA would need to be satisfied that the over riding purpose of giving away the money was to enable her to claim benefits. It sounds like it would be hard to prove this in your grandmothers case.

Generally, we would ask for information but I wouldnt class this as deprivation

lins1979

Hi

Thanks for your replies. The money she drew out and spent was mainly on the funeral some on some house improvements and then my grandad had said he wished for some to be given to his sons if anything happened. In total she has spent about £7,000. Her income now is just her state pension £60 per week and then a pension which has switched over from my grandad just under £400 per month.

Thanks

TOBRUK

Make sure she discloses all her spending and money she has given away when she makes a claim and it will be up to them what they decide as to whether it is acceptable.

She just has to answer all the questions honestly and give all the information they require.