savings and benefits

bobthedambuilder

john10000 wrote: »

on the benefit side i see my self just getting back in benefits what i paid in to the system and at the moment its only the interest i have recieved that has been made over the years and nothing else

The welfare state is not some kind of savings scheme. In essence, those who can afford it pay for those who can't. Like it or lump it, that's the way it works. Someone who has 25K in savings, however they get it, cannot be classed as someone who can't afford to pay.

Voyager2002

We could talk until the cows come home about what is or is not fair. However, this board is not to discuss policy but to explain how they system works. The advice given above is correct: any money given to your children for a future education would be regarded as still being available to you, and your benefit would be reduced accordingly.

Another area for discussion: would it actually be sensible to save money for university expenses? Personally I think it would make far more sense to use the money for things like school trips or equipment, so that they get the highest grades they possibly can and thus maximise their chances of getting into university. After all, there is a system of student loans and grants that provides support to those who have demonstrated their ability, but no amount of money would buy a place at a decent university for someone who had failed all their exams.

john10000

hi sorry to all i have made a mistake in my first post which i think effects this whole situation the 25k is for personal injury through work which i think is not classed as capital and i have 52 weeks to put it in trust fund etc this does not include loss of earnings can somebody confirm this please

HappyMJ

john10000 wrote: »

hi sorry to all i have made a mistake in my first post which i think effects this whole situation the 25k is for personal injury through work which i think is not classed as capital and i have 52 weeks to put it in trust fund etc this does not include loss of earnings can somebody confirm this please

Yes you have 52 weeks in which to spend it. Putting it in a trust fund is DOC. This isn't hard to do you have been given advice to buy a car with the money or to have a well earned holiday and update the furniture in your house. Your only option is to spend it. Diverting the cash to someone else is very clearly DOC.

bobthedambuilder

john10000 wrote: »

hi sorry to all i have made a mistake in my first post which i think effects this whole situation the 25k is for personal injury through work which i think is not classed as capital and i have 52 weeks to put it in trust fund etc this does not include loss of earnings can somebody confirm this please

That's completely different. If the money has been awarded as compensation for a Personal Injury, put it in a personal injury trust and its not taken into account for means-tested benefits. Search elsewhere on this forum for advice on how to do this. HappyMJ is wrong. It's not DOC. You can definitely keep it for yourself and use it.

john10000

ok thank you with it being personal injury do i have to declare it when recieved and do i need to keep reciepts of what the money has been spent on within those 52 weeks ?

bobthedambuilder

You need to do some research quickly. Use the internet. Here's a start for you. http://www.lindermyers.co.uk/personal-injury-trusts---some-faqs_754.html

john10000

ok thank you

john10000

if i decided not to set up a trust fund i take it i would have to be honest and declare the money would i have to keep reciepts of all the money i spent in 52 weeks ?

uponahill

With Pension Credit, you could win £1m and it would never stop your benefit as they fix your benefit payments for periods up to life.