Benefits you can't get if you've got savings

[Deleted User]

I understand the limit is pretty low. Is there any LEGITIMATE and LEGAL way to stop this?

For instance, if I've got outstanding credit card bills then I should be able to use my savings to pay this off?

Do the benefits people actually ask for bank statements to check what you have?

Also, if my wife is currently on maternity leave where she gets x weeks full pay then x weeks SPP only, how do I declare her income? Or do I need to inform them every time it steps down?

pmlindyloo

So that we can help would you be kind enough to tell us which benefits you are talking about? Different rules for different benefits!

rogerblack

For means-tested benefits - the general legal test is - was a significant purchase of the spending to get (more) benefit that you otherwise wouldn't qualify for, or wouldn't get so much.
If this is the case, then you are held to have 'notional capital' - if you for example get £30K, and spend £24001 on a massive family holiday, you may be held to have £24001 of 'notional capital' - this is added to your real capital, and at the end of the holiday - you may be treated as if you had £30000, not £5999.
This would of course wipe out your entitlement to means-tested benefits.

Credit card debt is a grey area.
In general, it's been found that paying off a debt that you do not have to immediately repay in full (you're getting angry letters from the lender) may be deprivation of capital.
However, one reason it may be acceptable is if the debt is at very high interest.
There is as I understand it no definitive position on when it would or would not be deprivation.
It will depend on your individual decisionmakers view.
In principle, you can write first, and ask for their decision, which they are then bound by.

[Deleted User]

pmlindyloo wrote: »

So that we can help would you be kind enough to tell us which benefits you are talking about? Different rules for different benefits!

General, JSA I guess. Dunno much about to be honest.

[Deleted User]

rogerblack wrote: »

For means-tested benefits - the general legal test is - was a significant purchase of the spending to get (more) benefit that you otherwise wouldn't qualify for, or wouldn't get so much.
If this is the case, then you are held to have 'notional capital' - if you for example get £30K, and spend £24001 on a massive family holiday, you may be held to have £24001 of 'notional capital' - this is added to your real capital, and at the end of the holiday - you may be treated as if you had £30000, not £5999.
This would of course wipe out your entitlement to means-tested benefits.

Credit card debt is a grey area.
In general, it's been found that paying off a debt that you do not have to immediately repay in full (you're getting angry letters from the lender) may be deprivation of capital.
However, one reason it may be acceptable is if the debt is at very high interest.
There is as I understand it no definitive position on when it would or would not be deprivation.
It will depend on your individual decisionmakers view.
In principle, you can write first, and ask for their decision, which they are then bound by.

Do they actually check all this?

sammyjammy

[quote=[Deleted User];62059257]Do they actually check all this?[/QUOTE]

Yes they do.

charlieismydarling

I take it you are sacking the cleaner then?

lighting_up_the_chalice

[quote=[Deleted User];discussion/4670771]
For instance, if I've got outstanding credit card bills then I should be able to use my savings to pay this off?[/QUOTE]

Then why have you not done so before now?

What you are suggesting now isn't just using savings to pay a debt, but using savings to enable a claim for benefits by paying a debt. In other words, you are asking the taxpayer to pay your credit card debt for you. THAT is why it may be deemed deprivation of capitol.

Kayalana99

I don't know how it works.

I would of thought if you had been paying interest on the tax you are recieving though it would quite easily be checked..not sure about it sitting in an account with tax free.

Im sure someone said thier is something you can invest it in that no longer counts as savings ? :S

xylophone

http://www.disabilitynow.org.uk/questions-and-answers/will-inheritance-hit-benefits

"If someone is held to have deprived themselves of capital in order to get or retain a means-tested benefit, the capital can be treated by the DWP as if they still had it and classed as “notional” capital."

SPP

SMP?
http://www.hmrc.gov.uk/leaflets/wtc2.pdf

[Deleted User]

charlieismydarling wrote: »

I take it you are sacking the cleaner then?

Just sacked one again.

Dunno. Might get another. Got benefits money to pay for now ;-)