Back payments and savings rule?

Frattop

I recently was awarded my sons dla and child tax credits will go up accordingly,
The dla back payment is just short of £2000 and I expect the tax credits to be the same. I already had £3000 in the bank and the tax credit payment will put me over the £6000 limit. Do they count the back payment? The advisor in the job centre said I should try and spend it Asap, but I don't know if that would look like I'm trying to get rid of the cash?

Both my children get dla and the tax credit payments seem shockingly high, surely there must be a rule that means I don't have to randomly spend money?

Frattop

blondebubbles wrote: »

Which benefit do you get that would be impacted by savings?

I get income support and dla, also carers allowance ( I assume all these are affected? )
I also claim housing benefit but I thought you could have £16000 in savings before that was affected

pmlindyloo

Back payments of benefits are disregarded for 52 weeks when you are on Income Support.

See here:

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/351167/dmgch29.pdf

page 89

Being on Income Support means you are automatically eligible for HB so that will not be affected

DLA is not means tested so will not be affected.

Basically, everything will remain the same.

Might be an idea to let Income Support know that you have received these back payments. Ask them to take a copy of the award letters and keep the receipt saying that they have done so.

You have a year to spend the money so enjoy!

Housing_Benefit_Officer

Frattop wrote: »

I get income support and dla, also carers allowance ( I assume all these are affected? )
I also claim housing benefit but I thought you could have £16000 in savings before that was affected

As you are on IS any savings over £6,000 would need to be declared to the DWP as they will assume a weekly income and reduce your benefits. Once they go over £16,000 then all means tested benefits will cease.

helping_hand2014

btt i thought Back payments of benefits are disregarded for 52 weeks when you are on Income Support so surely they will not have to be declared as they are back payments

missapril75

helping_hand2014 wrote: »

btt i thought Back payments of benefits are disregarded for 52 weeks when you are on Income Support so surely they will not have to be declared as they are back payments

Ask yourself this simple question. How can the money be disregarded if it's not been declared?

This is similar to something mentioned on another thread. Sometimes the existence of money (income or capital) becomes known and if the source is not known because nobody ever said anything, payment of benefits may be suspended pending the inquiries. This is inconvenient and possibly embarrassing.

rogerblack

pmlindyloo wrote: »

Back payments of benefits are disregarded for 52 weeks when you are on Income Support.

See here:

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/351167/dmgch29.pdf

The DMG does not specifically state it - my understanding was that this only applied to claimants themselves.
Does it in fact apply to any payments whos source is one of the benefits - whoever it's to?

Bled_2

Could anyone tell me how much you are allowed in savings/bonds before your working tax credits are affected. I'm confused!! Thank you

Bled_2

Thank you so much for the info, that really helps. I am due some inheritance soon, do I need to let the tax office know even if I will not be getting more than £300 in interest per year?

Bled_2

Yes I meant tax credits, sorry. Thanks very much for your help ��