Can I Protect My Savings While on Benefits?

rogerblack

HappyMJ wrote: »

You can close fixed term savings account with a penalty which is usually the loss of all interest.

As a more general point - even if you find such a product that genuinely does not allow you to remove the cash, it still has some value.
For example, if you have 50K locked up for 10 years, I will give you 10K for the rights to it on maturity now.

In addition, if you did this, you are likely to be treated as if you still had 50K - notional capital - as you have deprived yourself (temporarily) of capital, for the purposes of getting more benefit.

warwicktiger

Whatever happened to the brilliant, original idea that benefits are a safety net, not a right?

Ravenshade

Pension it, spend it on things that you need... there is no real way to 'hide' the money so to speak. You're going to have to spend it before claiming benefits.

missapril75

warwicktiger wrote: »

Whatever happened to the brilliant, original idea that benefits are a safety net, not a right?

I'm all in favour of maximising entitlements but you have a point.

Trouble is the means tested part of the benefits system has become the "normal" part whereas it used to be the safety net.

Ravenshade

missapril75

That doesn't excuse the fact that people are beginning to see the benefits system as something they are 'entitled to' whether they are entitled to or not.

But you have a very strong point that most people are on benefits, Welfare (JSA/ESA etc), Tax Credits or Corporate Welfare (fat cat bailouts!).

mrobsessed

Ravenshade wrote: »

Pension it, spend it on things that you need... there is no real way to 'hide' the money so to speak. You're going to have to spend it before claiming benefits.

Yeah, but even that can, I believe, be construed as fraudulent disposal of assets in order to get benefits. So if I went and bought shares/bonds/diamonds/gold/whatever in the preceding months before claiming an income based benefit that can be cited as fraud. I believe the DWP ask to see six months of bank statements to check this.

It seems the only option for 'hiding' assets is to stuff a mattress with banknotes or buy another physical commodity that can be exchanged for cash - and keeping something like that in one's house is itself is risky, foolish and impractical - and it seems, also illegal.

I'm inclined to use some of the money to overpay my mortgage - is that also frowned upon as benefit fraud?

Thanks for your help, all.

mrobsessed

Ravenshade wrote: »

missapril75

That doesn't excuse the fact that people are beginning to see the benefits system as something they are 'entitled to' whether they are entitled to or not.

That's because hard working people get fed up with the Government continually having its hand in their pocket with income tax, fuel duties and hundreds of other things, all legally enforced, year after year, yet it penalises people who have dilligently saved the instant they hit problems and makes them jump through every conceivable hoop to get a tiny bit of payback.

Meanwhile people who are long-term unemployed - or unemployable - and blithely breed like rabbits get generously rewarded for their fekless and irresponsible lifestyles.

It's hardly surprising this causes resentment and a willingness to defy the system.

Ravenshade

Go for it with your Mortgage.... that's classed as paying off a debt, so I shouldn't think it would be classed of depriving yourself of funds.

amcg100

Definitely if your money goes in an ISA then DWP will know about it because you have to give your NI Number to open an ISA( so you dont pay tax on interest ). If there is anyone you can trust in the family who is in secure employment, you could give them the money to look after for you before you become redundant ( There is however a maximum that you can give as a gift before tax has to be paid )

rogerblack

amcg100 wrote: »

If there is anyone you can trust in the family who is in secure employment, you could give them the money to look after for you before you become redundant

Doing this is a clear case of deprivation of capital, and will lead to at least an overpayment, at best, and criminal prosecution at worst.