LEGAL places to put capital that are not taken into account by DWP by DWP

jamespir

BurnleyBob wrote: »

The OP italicised the word legal for the benefit of those who like to jump to conclusions.

He could invest in a car, a new toilet seat, a 50" telly, etc, etc, all legally even if he didn't actually require any of them. Would doing so be wrong in your world?

buts it's like tax avoidance etc if the dwp felt that hed spent that money in order to claim benefits they can take the benefits off them make them pay howeve much they have claimed back and possibly prosecute

PippaGirl_2

Yes when I said Gold I meant jewellery, there was a programme on pawn shops recently and it featured a guy who had thousands of pounds of Gold which he mostly wore in thick chains and every now and again he would go to the pawn shop and get it weighed and valued. The DWP can't touch it.

POPPYOSCAR

Silly you for being so frugal and not spending it in the first place!!

Looks like it is time for a world cruise, new car, etc.

Such is the idiocy of the system.

tomtom256

BurnleyBob wrote: »

The OP italicised the word legal for the benefit of those who like to jump to conclusions.

He could invest in a car, a new toilet seat, a 50" telly, etc, etc, all legally even if he didn't actually require any of them. Would doing so be wrong in your world?

No but then I don't have nearly £6k in benefits or want to try to hide it so that I can still get/not have any benefits affected.

I have never understood how some people on means tested benefits manage to save this amount of money and plead poverty at the same time.

POPPYOSCAR

jamespir wrote: »

buts it's like tax avoidance etc if the dwp felt that hed spent that money in order to claim benefits they can take the benefits off them make them pay howeve much they have claimed back and possibly prosecute

And so he is penalised for being careful with his money instead of frittering it away.

Go after the ones who never pay any tax and yet earn millions.

jamespir

POPPYOSCAR wrote: »

And so he is penalised for being careful with his money instead of frittering it away.

Go after the ones who never pay any tax and yet earn millions.

hes not being penalised for being careful he has to be honest with the dwp they will make a descsion based on how much he has

however if he tries to decieve the dwp then he will be penalised

Naf

The way the system works at present, people who, like the OP it would appear, have the capacity to get themselves out of the pit of reliance on the state; are rendered incapable of doing so by that very system - its utterly ridiculous. Why shouldn't someone who is careful with their money (benefit money or not) be able to save, improve their circumstances, and ultimately reduce their reliance on the state. Yes, a cap/review limit on the amount of savings this would apply to is necessary, but it should be at a reasonable level based on the economic climate. At the very least it ought to be a minimum deposit for an average house. Otherwise there is absolutely zero incentive to even be careful with your money, and people's reliance on the state will only increase.

Naf

jamespir wrote: »

hes not being penalised for being careful

Yes, he is (or would be) - the system does that because it is based on extremely outdated assumptions about the world & the economy.
Two people on the same income & same reliance on benefits, one is careful, lives within his means, and is able to save gradually year on year. The other spends every last penny every month, builds up credit card debts, takes lavish holidays every year (paid for with credit, of course).
They both get into a crisis and lose their jobs; the first is told where to stick it until his savings are depleted; the other is handed yet more state money to continue living exactly as before.
Fair?
No!
I rely heavily on this !!!!py system, and I've had it. I'm glad I'm off to uni next week & hopefully be rid of it for good in a few years.

POPPYOSCAR

jamespir wrote: »

hes not being penalised for being careful he has to be honest with the dwp they will make a descsion based on how much he has

however if he tries to decieve the dwp then he will be penalised

Of course he is.

Someone spends every penny they get and continue to get benefits he saves his and so gets less. Where is the incentive to save and ultimately better yourself or have a reasonable sum behind you for a rainy day?

BigAunty

LEGAL places to put capital that are not taken into account by DWP?

Well, any type of investment vehicle is completely out. I don't think pension contributions would be viewed dimly but do check.

Otherwise, there's no real way of keeping it as capital that I can think of (that's the point of capital rules, they trigger changes in income related benefits! You can really just port it out of savings account and invest it and get it back later...)

So consider the excess lost if you want to keep under the 6k limit and buy a car or go on holiday, buy new furniture, decorate, etc.