CSA1 and rules re savings

infoseeker1

Hi
can anyone advise on CSA1 rules please. We need to know whether any savings following the sale of house and downsizing will be used for CSA assessment purposes. IE Are any savings exempt from calculations?

Thanks

Fission

"Exempt from calculations" in what way?

Your savings are not income and won't be included as though they were income under the formula. On CSA1 though, interest on your savings is an income, legitimate to be taken into account, and you'll obviously have to declare it if asked about it.

On the other hand, if your savings amount to more than £10,000, the other party can ask for, and maybe get, a Departure. If successful, it would have the effect of increasing your weekly income used in the assessment by 1/52 of 8% of your savings.

Example (based on £30,000 savings):

£30,000 x 8% = £2,400
£2,400 ÷ 52 = £46.15.

That could make a difference of £23.08 a week (or up to £46.15 a week if your assessment is already reduced by protected income).

Marisco

Fission wrote: »

"Exempt from calculations" in what way?

Your savings are not income and won't be included as though they were income under the formula. On CSA1 though, interest on your savings is an income, legitimate to be taken into account, and you'll obviously have to declare it if asked about it.

On the other hand, if your savings amount to more than £10,000, the other party can ask for, and maybe get, a Departure. If successful, it would have the effect of increasing your weekly income used in the assessment by 1/52 of 8% of your savings.

Example (based on £30,000 savings):

£30,000 x 8% = £2,400
£2,400 ÷ 52 = £46.15.

That could make a difference of £23.08 a week (or up to £46.15 a week if your assessment is already reduced by protected income).

Just out of curiosity, would this apply to savings in a joint account? If so, it hardly seems fair, as the bulk of the savings could have been made by the NRPP.