Income Support & Savings

Jemalouwho

Hiya everyone,

At present I live with my husband (but are separated) and my daughter and I are moving out soon. I have agreed to acept 12k (could have been more - complicated) and have put in a claim for Income Support, Tax Credits and am receiving Child Benefit.

When I get the money straight away 2k (maybe a little more as my debts are getting bigger everyday I wait for my money) of it goes on my debts (credit cards, bank overdraft & catalogues). So that leaves me with about 10k, am I right in thinking that I am able to keep the first 3k and spend it on whatever I like?

As for the 7k which is left am I right in thinking I can spend this but have to keep receipts for anything I buy (like things for my new house). If this is the case what can I buy without it causing problems. I understand that anything over 3k will affect how much Income Support I get so does this mean if I get less Income Support am I ok to spend my savings to make up the amount I lose out on each week?

I am hoping to rent a house and will be making a claim for Housing Benefit but don't know how this will affect that yet. I am 30 next month and my daughter if 3 and a half if that makes any difference.

Thanks for listening.:p

real1314

The lower limit is now £6k not £3k.

If you get £12k, "spend" £2k on debts (keep records of this), that'll leave you with £10k. £6k is disregarded, leaving £4k that may affect your IS. This will lead to a £16 weekly reduction.

You can spend the money, but they will look at whether the spending is "reasonable" (which is down to opinion, based on your own circumstances). If they decide the spending is not reasonable, they'll still take the £16 a week off (or less if they decide some of the spending is reasonable).

As for HB, if you get IS, you get full rent anyway (subject to a rent officers decision on privately rented property).

Jemalouwho

Thank you soooo much for your reply it has helped put my mind at rest.

:j