Deprivation of capital & housing benefit.

dodger1

paulday wrote: »

Shes 65 and was working as a cleaner before the accident. Her main injury was her right arm being smashed to pieces and that is now full of metal plates and screws meaning that she has been unable to return to work.

I knew i was going to be accused of attempting to play the system when i posted the message, but £20k for a pensioner who will now probably never be able to return to work is not a great deal of money, so if I can find a way to protect it for her for when she may need it in the future then i'm going to take it.

She would lose her housing benefit completely, meaning her rent for go from £25ish pounds a week to £102, and council tax benefit would also be lost, apart from the 25% single person discount. So her only income, her normal pension, would be used up in those 2 bills alone!

Paul

If your mum lives on her own and receives at least £20 pension credit guarantee per week and the £20,000 will be her total savings she should receive the full HB/LHA allowance and the full council tax allowance. Any pension credit guarantee award, even 5p means you get the full HB/LHA and council tax allowances.

So it all depends what level of pension credit guarantee she receives at the moment. The first £10,000 of savings are disregarded for pension credit guarantee, after that each £500 of savings is considered to be an income of £1 per week so with a total savings of £20,000 she would lose £20 of her pension credit guarantee. So as long as she gets more than £20 she will be ok.

mazza1985

But OP you are still missing the point!

She will NOT lose all her hb/ctb. She will lose some of pension credit ( £20 a week as we previously established). As long as she still gets pension credit her rent and council tax benefit will be paid for.

I don't understand what the problem is? The compensation is meant to make her life easier, and with the hints that we have given you on what to spend the money on, give it 3 months and you could have it down to 10K!

Regardless of what you claim, you are trying to avoid your mother having her means tested benefits reduced. Put it in a trust if you will, but because it is not necesary it WILL be viewed upon as capital deprevation.