WTC in your first year of qualifying - do you have to wait until next year?

M.Johnson_2

Is it possible to spend your savings on living and 'high lifestyle' and on some tangible things that hold their value so you would qualify for benefits?

What is in place to stop people doing this?

ijrwe

M.Johnson wrote: »

Is it possible to spend your savings on living and 'high lifestyle' and on some tangible things that hold their value so you would qualify for benefits?

What is in place to stop people doing this?

I think they only check is bank statements. Certain other assets are taken into account, but not your actual possessions. It's really up to you to declare your wealth. This is definitely an evasion vs. avoidance issue, I think - hard to say what's OK or not. For example, someone with £16,000 savings but a lot of debt (mortgage, for example) might well be minded to pay a chunk off in order to reduce their savings and qualify for more benefits. Their net worth hasn't changed, so is it really a deceptive thing to do? I imagine "what have you been spending your money on" checks would be impossible to implement anyway.

M.Johnson_2

What about buying a super huge 4K super hi def TV?

ijrwe

M.Johnson wrote: »

What about buying a super huge 4K super hi def TV?

What about it?

M.Johnson_2

ijrwe wrote: »

What about it?

If someone had over £6 savings, then they blew a few grand on well just 'stuff' TV, sound system, super PC, gadgets etc etc.......

Would they then qualify for max benefits and be able to show reciepts for where the savings went?

superwoman4

M.Johnson wrote: »

If someone had over £6 savings, then they blew a few grand on well just 'stuff' TV, sound system, super PC, gadgets etc etc.......

Would they then qualify for max benefits and be able to show reciepts for where the savings went?

Have a read about deprivation of capital.

M.Johnson_2

I have and I would image buying a lot of stuff is ok.

ijrwe

WTC takes no interest in your savings anyway, but other benefits (afaik) only want to see two months' bank statements usually. I imagine that very large withdrawals that appear just before a benefit claim might well be questioned, but this would have to be on a case-by-case basis.

unicorn1984

Sorry to say it, but if you have £16,000 in savings, then you can afford to live off more than £100 a month until you get a better paid job, surely?

I would love to have £16k, like most people, and certainly wouldn't be looking into housing benefit knowing I had some peoples average annual salary sat in my account....

lovinituk

unicorn1984 wrote: »

Sorry to say it, but if you have £16,000 in savings, then you can afford to live off more than £100 a month until you get a better paid job, surely?

I would love to have £16k, like most people, and certainly wouldn't be looking into housing benefit knowing I had some peoples average annual salary sat in my account....

Sadly its the usual greed and sense of entitlement that so many people seem to have.