Widowed Parents Benefit and Savings

MoominMama

Hi, I receive Widowed Parents Benefit (only half the full amount though), Child Tax Credits and Child Benefit, that's all.

I have my house on the market and need to drastically downsize, would any money I have left over after I have bought somewhere else effect any of those benefits?

I'd like to buy somewhere so I can have at least £20K left over for security and to help maintain the property, at the moment I don't have a penny to my name and my house is falling down around my ears.

I'd like to put some in ISAs, open up Junior ISAs for the children and possibly buy some Premium Bonds but also have some for immediate access in case the boiler blows up, one of the kids breaks a window (again) etc

I have been Googling for over an hour now and I'm more confused than ever! I'm not good with numbers so need it explained like I'm 5 yrs old!

paddedjohn

Anything you have left over £6k will affect any means tested benefits you receive, afaik the benefits you have mentioned are not means tested.

Dunroamin

Assuming you also claim council tax benefit, that is means tested and you'd no longer be eligible with £20K in capital. Depending on the ages of your children, you might need to look at what will happen financially in the future.

pmlindyloo

Widowed Parents Allowance is a non means tested benefit so any savings would not affect the award.

Child Benefit is not affected by savings and Child Tax credits are not affected by the savings amount that you are talking about.

If you are on any means tested benefits such as Income Support, JSA, Housing Benefit, CT reduction then they would not be awarded on anything over £16000.

rogerblack

MoominMama wrote: »

I'd like to buy somewhere so I can have at least £20K left over for security and to help maintain the property, at the moment I don't have a penny to my name and my house is falling down around my ears.

In short - any money left over after the purchase of the house will eliminate most means-tested benefits at about 16K.
This applies whatever asset class you put them in - premium bonds, gold coins, bank accounts - are all capital.
Trying to tie capital up - say in a fund you can only draw on for house repairs - may result in you being found to still have that capital, and it still resulting in loss of benefit.
Similarly with ISAs setup for the children.

MoominMama

Thanks for the replies everyone, so it looks like my benefits are non means tested which is good, I don't get housing benefit, JSA or IS and now my council can decide who they let have council tax credit etc I have to pay most of it anyway so it looks like having savings won't affect me which is a huge relief.
I will get WPA until I no longer claim CB and my youngest child is 7 so I've got a while to go yet (unless I get married).

Just to be clear, I don't want to open up those kind of savings accounts to try and make my capital 'disappear', that is just what I would prefer to do with it rather than put it in a normal savings account and I want to make sure my kids have got something for when they are older.