Can getting a bank loan effect my housing benefit?

scarborosmoggy

The council want to know the highest amount I've had in my bank account, this was when I got a bank loan, can they punish me for getting a bank loan and them not knowing about it, will they try and claim they should have been paying a less % of my rent because I had this money from the loan, it was only for £1500.

healy

The lower capital limit for Housing Benefit is £6000 so if you had below that it shoundnt be a problem.

scarborosmoggy

Thanks for that, it shouldn't really be anything to do with them as it's not 'income' and we have to pay it back every month,why shouldn't we be allowed to get a loan for a family holiday and enjoy ourselves, its not as if they'd think for example, one week say I had about say £10 left after paying the bills and they can see from my bank statement that this was the case that they'd increase my housing benefits to cover me not having much money left, I just found it a bit strange that they wanted to see what the account was when it had its largest amount in it.

healy

As it is a means tested benefit they need to know that your capital is within the limits all the time so I think the highest amount would be what they need to check.

claysam

Would this not be counted as unearned income though. When i receive my student loan, this is calculated as unearned income and then I have to pay an extra £20 per week towads my rent?

scarborosmoggy

It shouldn't though, as me getting a loan from the bank is nothing to do with them really, I would consider you getting your student loan more as an 'income' though. you don't have to pay it back till you get a job further down the line over a certain amount of £k though do you?

real1314

a bank loan is treated as capital not income. as someone else said they just want to chcek that you've not gone over £6000 (was £3000 before April 06)

a student loan is to cover cost of living expenses, which is the same as means tested benefits so it is treated as income.

scarborosmoggy

real1314 wrote:

a bank loan is treated as capital not income. as someone else said they just want to chcek that you've not gone over £6000 (was £3000 before April 06)

a student loan is to cover cost of living expenses, which is the same as means tested benefits so it is treated as income.

Thanks for that.