Savings on income support-how much?

tallerton

Mojisola wrote: »

This is the position I am in with my parents. They receive benefits that they are entitled to but, left to themselves, they would reduce their spending to a minimum. Having grown up in the 1930s depression, been young adults during the war with rationing, etc, and started a family on a very small income in the 1950s, they have a fear of running out of money. Their benefits allow them to have some paid carers, heat their home, buy nutritious food, replace worn-out furnishings, and so on. Without my encouragement that they are allowed to spend the money they get on these things, they would live a very mean life.

Thank you for bringing that particular subject up. This is a case in question where somebody on an

income sufficient to maintain themselves decently

being benefits does not spend everything they have coming in.

I too am able to understand fully what you are saying in that my mum receives the OAP, PC top up and the high rate of AA.

She has a good standard of living using just the OAP & PC. Because of her age she has been used to this all of her life and will/cannot see any other way.

She saves the AA of, about £74 a week. She has done this for the past 15 years or so. Unfortunately because of this she was well over the capital limit and now has her PC reduced because of her savings of benefit income.

For a while the DWP knew nothing about this capital, and when I found out I notified them of it which resulted in a sizeable debt which was settled out of her savings.

Twice a year since, I notify the DWP of the savings figure and they issue a new 6 month AIP award having regard to the new capital balance.

I could, if I go by what others say on here, tell my mum to spend everything except the last £6000 to maximise her benefit entitlement. That would be deprivation and she would still have a reduced PC payment as they would still see it that she still had the capital.
Additionally, what would she do with the extra £74 every week? She can't save it, if I listen to what is said on here, and she can't spend it.
But do I hear that she must do something so as to avoid losing benefits?

Mojisola

tallerton wrote: »

Additionally, what would she do with the extra £74 every week? She can't save it, if I listen to what is said on here, and she can't spend it.

If she genuinely doesn't need the extra money, then her savings will increase and the benefits will reduce. There's no point spending money on things she doesn't need just to get more money that she doesn't need.

My parents have bought funeral plans, a stairlift (to save the 18 months they would have had to wait to get one from the council), a wheelchair, some new chairs that are easier to get in and out of and replaced some worn carpets to help prevent falls. They also pay for some carers to reduce the load on me because I was struggling to give them as much time as they needed.

They aren't spending money to waste it but they are making their lives more comfortable.

tallerton

Mojisola wrote: »

If she genuinely doesn't need the extra money, then her savings will increase and the benefits will reduce. There's no point spending money on things she doesn't need just to get more money that she doesn't need.

My parents have bought funeral plans, a stairlift (to save the 18 months they would have had to wait to get one from the council), a wheelchair, some new chairs that are easier to get in and out of and replaced some worn carpets to help prevent falls. They also pay for some carers to reduce the load on me because I was struggling to give them as much time as they needed.

They aren't spending money to waste it but they are making their lives more comfortable.

Thank you and that is exactly what is happening. My mum doesn't need both the PC and AA. If I was to close one of them down, I know what I would get from Social Services who instigated the claims for her in the past - buttt out!!!

But some on this thread have the opinion that you must spend it!!

We are talking about people who have an income sufficient to maintain themselves decently.....

Those who help such people maintain themselves properly by spending what they should are not abetting deprivation or fraud.

Try to remember that benefits do not provide people with luxurious lives. If someone on benefits has accumulated a large sum in savings, it's not an indication of fraud...

I personally feel that to persuade someone to spend all of their benefit money each week in order to ensure maximum benefits is totally wrong.
Indeed another poster said that there is nothing worng in 'making sure' that the savings never go over £6000, if it does either spend it or get rid of it - making sure to get the most out of the welfare state????

Maybe I am wrong and I should be threatening my dear old mum to lose it - one way or another! But then deprivation comes into the equation.