deprivation of capital

amanda0612

my mother is due to receive a payment of £15,000 in the near future.....she receives Dla HRC and LRM, ESA contribution based and SDP and housing benefit.....she would like to buy a car when she receives this (maybe around £4,000), as it would really help her with getting around etc. will the DWP see this as deprivation of capital?

also how would having this amount of capital affect the benefits she is already receiving?

any advice is greatly appreciated.

[Deleted User]

a car for £4k wont be seen as DOP a new rolls royce would be
savings only effect means tested benefits

pmlindyloo

amanda0612 wrote: »

my mother is due to receive a payment of £15,000 in the near future.....she receives Dla HRC and LRM, ESA contribution based and SDP and housing benefit.....she would like to buy a car when she receives this (maybe around £4,000), as it would really help her with getting around etc. will the DWP see this as deprivation of capital?

also how would having this amount of capital affect the benefits she is already receiving?

any advice is greatly appreciated.

DLA is not affected by savings/income/capital (not means tested)

Contribution based ESA is not affected by savings/capital but private pensions are taken into account. If your mother changed to income based ESA then savings would be taken into account.

Housing Benefit and Council Tax benefit are means tested and any savings between £6000 and £16000 would mean that she would lose some of these benefits.

As previously said the purchase of a car would be 'looked at'.

amanda0612

thanks for your reply.

so the money she will receive would only affect the housing benefit she receives?

thanks

amanda0612

thanks.....that explains everything

Cpt.Scarlet

If she is receiving the Severe Disability Premium because she lives alone, then she must also be receiving Income Related ESA as a top up to her ESA(CB). This will be affected by the amount of capital she has.

If she has £11,000 left after the car then £20/w will be deducted from her payments (11000 - 6000 = 5000 / 250 = 20)

BurnleyBob

I rather think that many people who would find themselves in the OP's mother's position would suffer some awful bad luck for a prolonged period.

Their telly might conk out along with some white goods that will need to be replaced with substitutes that are bigger and better. Nothing too extravagent, of course, and they'd be sure to keep all the receipts in case any Doubting Thomas makes enquiries at a later date. It would be fortuitous if someone could be found who could make use of the clapped-out items. Better still if they paid a cash gift as a little thank you.

Then there's the three-piece suite (or bed/wardrobe), carpets and rugs. How unfortunate it would be should someone stretching to emulsion the ceiling accidentally fall and the stepladder that the tin was balanced on came crashing down for its contents to splatter everywhere. Taking photographic evidence of the calamity could prove to be a wise precaution.

Everyone deserves a holiday now and again, especially to unwind after such a trying time, and a fortnight's all-inclusive stay at a Spanish Costa resort in the peak season might be considered.

I would imagine that some people can be terribly inventive when they put their minds to it.

princessdon

BurnleyBob wrote: »

I rather think that many people who would find themselves in the OP's mother's position would suffer some awful bad luck for a prolonged period.

Their telly might conk out along with some white goods that will need to be replaced with substitutes that are bigger and better. Nothing too extravagent, of course, and they'd be sure to keep all the receipts in case any Doubting Thomas makes enquiries at a later date. It would be fortuitous if someone could be found who could make use of the clapped-out items. Better still if they paid a cash gift as a little thank you.

Then there's the three-piece suite (or bed/wardrobe), carpets and rugs. How unfortunate it would be should someone stretching to emulsion the ceiling accidentally fall and the stepladder that the tin was balanced on came crashing down for its contents to splatter everywhere. Taking photographic evidence of the calamity could prove to be a wise precaution.

Everyone deserves a holiday now and again, especially to unwind after such a trying time, and a fortnight's all-inclusive stay at a Spanish Costa resort in the peak season might be considered.

I would imagine that some people can be terribly inventive when they put their minds to it.

why, they have been able to have access to benefits because they can't support themselves and can now even for a short while (remember 6K is untouchable).

If I was to hear of redudancies (again in march) and spend my savings, would you say the same?

BurnleyBob

Why would some be tempted to be inventive?

Quite possibly because so many have become aware that what appears to be everyone at Westminster invested a lot of their time maximising their expenses, including the previous Prime Minister and his Chancellor, as the country's national debt was mounting by billions of pounds every week.

A fish rots from the head.

[Deleted User]

Cpt.Scarlet wrote: »

If she is receiving the Severe Disability Premium because she lives alone, then she must also be receiving Income Related ESA as a top up to her ESA(CB). This will be affected by the amount of capital she has.

If she has £11,000 left after the car then £20/w will be deducted from her payments (11000 - 6000 = 5000 / 250 = 20)

if this is the case then hb and ctb may not be affected