What is the savings limit for IS, HB and Tax Credits?

ladysammyla1981

Hello,

I a currently receiving Tax credits, HB and IS as a single mother. I am planning on moving in with my Partner in the next few months. I did a benefits prediction based on his income and I would drop my IS but he would gain it back as working tax credits, and my housing benefit would be greatly reduced.
Since doing this calculation, my mother passed away and I am named beneficiary on her draw down pension plan and am due to receive the money in the next week or so. I am really scared I will loose my benefits, I know that she would want me to use it for long term rather than be forced to live off it, but we can't get a mortgage for about 12 months as our credit ratings are not that great. I a just wondering how much I am allowed to have in savings before my benefits are stopped?

Thanks in advance.

TELLIT01

For IS the first £6k is ignored. If over £16k entitlement to benefit is lost completely. I don't know the limits for the others.
Sadly, what your mother would have wanted you to use the money for is irrelevant. Income Support, with 'support' being the important bit here, is to help people who don't have their own finances.

ladysammyla1981

I should disregard the IS anyway, like I said it goes the moment me a d my partner move in together and our income is assessed jointly, but it's useful to know the cap on IS thank you

Caz3121

Housing benefit is the same as IS, reduced from £6k, no qualification at £16k

ladysammyla1981

Thanks for that, I think that's the main bit worrying me, along with the rent. I'm thinking I might need to call turn to us and get them to run through some figures for me, it's the only way to get a real idea. Just heartbreaking that we will loose the deposit for a help to buy property because we need to wait a year trying to repair our credit history.

rogerblack

ladysammyla1981 wrote: »

Hello,

I a currently receiving Tax credits, HB and IS as a single mother. I am planning on moving in with my Partner in the next few months. I did a benefits prediction based on his income and I would drop my IS but he would gain it back as working tax credits, and my housing benefit would be greatly reduced.

If you move into someone elses property where you have no legal requirement to pay the rent, your housing benefit would stop entirely.
Only one member of a couple can claim.

nannytone_2

is the pension paid as a lump sum or as a weekly/monthly amount?

ladysammyla1981

I'm not sure I understand what you mean? My partner works full time, I am the claimant. I have already had a check done by turn2us and they gave me an estimate based on a property we applied for earlier and whilst the money was reduced, I still would get some help. I'm not moving into his home, we are moving together.

ladysammyla1981

nanny tone, it is paid as a lump sum.

NYM

Do you have any idea of the amount you're likely to receive ?

thorsoak

ladysammyla1981 wrote: »

Hello,

I a currently receiving Tax credits, HB and IS as a single mother. I am planning on moving in with my Partner in the next few months. I did a benefits prediction based on his income and I would drop my IS but he would gain it back as working tax credits, and my housing benefit would be greatly reduced.
Since doing this calculation, my mother passed away and I am named beneficiary on her draw down pension plan and am due to receive the money in the next week or so. I am really scared I will loose my benefits, I know that she would want me to use it for long term rather than be forced to live off it, but we can't get a mortgage for about 12 months as our credit ratings are not that great. I a just wondering how much I am allowed to have in savings before my benefits are stopped?

Thanks in advance.

Although your mum might want you to use it long term, you cannot really expect the state to keep on paying out to you if you do have more than the £6,000 or £16,000 in savings. You have to do what you have to do, as do we all.