Is this counted as savings?

benefitbaby

Long standing legal authorities mean the test for deprivation is whether the monies were disposed of with “...a significant operative purpose…” to obtain, or increase, benefit.

What matters is the reason for the OP spending the pension capital on clearing debts.

If part of the OP’s reasoning (it doesn’t have to be the main reason) is significantly purposeful to bring her into benefit entitlement, that would almost certainly be deprivation.

However, if obtaining / increasing benefit is not a significant operative purpose behind the paying off debts then benefit should be payable.

The OP’s position will be even stronger if:
1) early repayment saves interest / other charges; thereby reducing the overall debt(s); and/or
2) if the creditors will accept a lesser amount in return for early repayment, it is a wholly appopriate approach to settle.
3) the OP has a history of being otherwise financially responsible with repayment being consistent with that approach; and/or
4) the existence of the debt has had a detrimental effect on health and early repayment would have a positive effect in that context.

luminated

Good information benefitbaby do you have any reference source/web site link?

BigAunty

Chrissiew wrote: »

I was thinking of paying off a loan we have but to be on the safe side I will phone the DWP to ask if this will be ok, thanks everyone

I got the impression from past threads on this topic that the DWP never provide an answer to hypothetical scenarios. It would be good if they could be direct and straight on queries of this nature but I'm not confident.

As per the previous poster, the DWP are obliged to find evidence of intentionality, namely that the claimant has deliberately and knowingly deprived themselves of capital in order to claim benefits. That DWP decision makers guide on Deprivation of Capital makes this clear and also how they try to identify the intentional nature of the act.

luminated

BigAunty wrote: »

I got the impression from past threads on this topic that the DWP never provide an answer to hypothetical scenarios. It would be good if they could be direct and straight on queries of this nature but I'm not confident.

As per the previous poster, the DWP are obliged to find evidence of intentionality, namely that the claimant has deliberately and knowingly deprived themselves of capital in order to claim benefits. That DWP decision makers guide on Deprivation of Capital makes this clear and also how they try to identify the intentional nature of the act.

Fully agree with all you say.

I have read the DM's guides and even though my career involved reading complex documents these guides are not easy to take in.

The trouble with calling the DWP is they may note it on your records. And yes I have read numerous times where posters are suggested to get pre approval for expenditure, and in writing, but just isn't going to happen.

I am very close to the savings limit below which I can claim HB/CTB (£480 PM) and worry about every pound spent especially as a load of abnormal expenses have hit me at once.

missapril75

BigAunty wrote: »

I got the impression from past threads on this topic that the DWP never provide an answer to hypothetical scenarios. It would be good if they could be direct and straight on queries of this nature but I'm not confident.
.

Very difficult to do for some things. Legislation may change or the person enquiring may have a change in their situation that changes the response.

Also people would give/adjust the information they pass to DWP to suit.