Does this have to be declared?

newsgirl

A friend and her husband are currently receiving ESA and council tax and housing benefit.

They've just received a cheque for £4,600 for a PPI claim. They have no savings and considerable debts to family, gas and electricity, water board etc. Most of this money is owed to other people who are waiting to be repaid it.

Do they have to declare this money to the DWP and council?
Thanks for help

pmlindyloo

You are allowed up to £6000 in savings and still be eligible for means tested best benefits so if this is their only savings then it doesn't have to be declared.

lukieboy96

Always wondered what would happen if you win your case. Housing benefit etc and how this would affect it.

tomtom256

newsgirl wrote: »

A friend and her husband are currently receiving ESA and council tax and housing benefit.

They've just received a cheque for £4,600 for a PPI claim. They have no savings and considerable debts to family, gas and electricity, water board etc. Most of this money is owed to other people who are waiting to be repaid it.

Do they have to declare this money to the DWP and council?
Thanks for help

Presumably they have no other savings or capital that when added with this will take them over the £6k capital threshold?

If they don't they will be fine to not declare it, however if they already have £2k plus in savings it will need to be declared.

Without all the facts it is hard to give advice.

suicidebob

newsgirl wrote: »

A friend and her husband are currently receiving ESA and council tax and housing benefit.

They've just received a cheque for £4,600 for a PPI claim. They have no savings and considerable debts to family, gas and electricity, water board etc. Most of this money is owed to other people who are waiting to be repaid it.

Do they have to declare this money to the DWP and council?
Thanks for help

Enjoy your holiday!! 2 weeks in Florida, I presume?

newsgirl

suicidebob wrote: »

Enjoy your holiday!! 2 weeks in Florida, I presume?

I didn't appreciate your flippant remark Suicide Bob. This is a young couple in terrible debt with no savings whatsoever and they need to use the money to pay back things like water rates, electricity bills and other costs which built up while they have been unemployed and unable to work through long term illness.

The CAB has drawn up a repayment plan for them, and they could continue to pay these debts off at £1 per month for something like 60 years but they want to do the decent thing and use this PPI repayment to pay them off.

Is that OK with you SuicideBob? Or should they do as you suggest and take a holiday abroad?

McKneff

Come on Bob, this really isn't like you.....