Will a lump payment affect my IS? Help please...

cottagepie_2

Hello All,

I am on IS and am a single parent. My ex doesn't currently contribute maintenance. He lives overseas, so is exempt. I have debts as a result. If he agrees to periodic lump payments of capital (owed from joint savings), will the money be taken off my IS anyway? If he agrees to making maintenance payments plus a capital payment (maintenance would be less than the IS levels), what will happen then? Will the remaining capital have to make up all the IS in that case and then would there be capital left over, which I could use as capital?

Additionally, the capital is well under the limits for IS and HB (we're not talking big amounts of money), so would I still be entitled to NHS dentistry, free school meals, HB, CTB? :think:

Thank you for any help...

Scarlett1

im not sure what you mean by capital are you meaning your share of monies from a joint account ? if you receive regular amounts it will be looked at as being income and the dss will want to know what these payments are for. If you receive maintenace it has to be declared and taken off your IS apart from £10 which you are allowed to keep per week, if its more than the IS amount then you will lose that and the benefits attached to it, can your ex just give you the capital in one lump and put it in a savings account ?

cottagepie_2

Hello,

Thanks for the reply.

I thought that if a lump payment of capital is paid (even if from savings), when you are receiving IS, the IS would be then reduced and effectively the money replaces what is being received in benefits?

Is that the case? Wouldn't it be unacceptable to receive capital (from savings), but no maintenance?

real1314

It's not really clear what you're asking?

Is this joint capital? or his capital?

I think that if he paid you a "lump sum" of "capital", it might well be deemed as income. i.e. that you have been paid your maintenance as a lump sum, and therefore it would affect your IS.
Fair play to you for trying to find a way to keep the dosh, but I don't think it will work. If you declare it, it will be treated as income, if you don't, it will be treated as fraud. all imho.