Would a cash gift from family impact on benefits?

timandkay

I am self employed and on a low income and my wife is a full time student and we have three children (my wife's children from her previous relationship).

We claim housing benefit, council tax benefit, child benefit and working tax credit and also receive child tax credit and a grant for my wife's studies. Oh and we get a tiny amount from the childrens father for maintenance.

Things have been tough recently and my Dad wants to give us £3k to ease the pressure. Will this affect our benefits and does it have to be declared?

I'm sure this has been asked in one way or another on this forum but each circumstance is slightly different so thought I would ask...

Housing_Benefit_Officer

The cash gift will be disregarded as income but it will be treated as capital if it takes your savings over £6k. Declare it as a gift as it will only stop questions being asked down the line.

timandkay

Housing_Benefit_Officer wrote: »

The cash gift will be disregarded as income but it will be treated as capital if it takes your savings over £6k. Declare it as a gift as it will only stop questions being asked down the line.

Thanks for the advice, this wouldn't take savings over £6k. By declaring it do you just mean phoning or writing to the council and HMRC?

portly1

This is a very good question.

I have seen on other forums that when someone is in receipt of a means tested benefit and receives say £100 every month for say 30 months it will be treated as income. Being a cash gift means nothing. There once was a posting that said that the father had helped his single mum daughter out by paying her a cash sum every month. She was investigated and had to repay a large sum of overpaid IS.

Maybe the fact that it is in one lump sum makes a difference, I don't know but can't see how.

jacques_chirac

portly1 wrote: »

This is a very good question.

I have seen on other forums that when someone is in receipt of a means tested benefit and receives say £100 every month for say 30 months it will be treated as income. Being a cash gift means nothing. There once was a posting that said that the father had helped his single mum daughter out by paying her a cash sum every month. She was investigated and had to repay a large sum of overpaid IS.

Maybe the fact that it is in one lump sum makes a difference, I don't know but can't see how.

Back again Andy?

OP, Housing Benefit Officer is correct, it would be counted as capital but not income.

Housing_Benefit_Officer

portly1 wrote: »

This is a very good question.

I have seen on other forums that when someone is in receipt of a means tested benefit and receives say £100 every month for say 30 months it will be treated as income. Being a cash gift means nothing. There once was a posting that said that the father had helped his single mum daughter out by paying her a cash sum every month. She was investigated and had to repay a large sum of overpaid IS.

Maybe the fact that it is in one lump sum makes a difference, I don't know but can't see how.

Rubbish. Gifts are disregarded in full. Irrespective of the amount or length of time they are paid. Any 'gift' left in a bank account becomes capital.

Housing_Benefit_Officer

From the DWP Guidance Manual

http://www.dwp.gov.uk/docs/dmgch51.pdf

51393 onwards.

portly1

Housing_Benefit_Officer wrote: »

From the DWP Guidance Manual

http://www.dwp.gov.uk/docs/dmgch51.pdf

51393 onwards.

Thanks. The case I mentioned was probably caught under 51417 as a regular cash payment between father and daughter and was treated as a maintenance payment.