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

nannytone_2

NYM wrote: »

I'm confused now :think: Is it permissible to put money into a child's named account so that someone can continue to receive means-tested benefits ?

no it isn't as it would be deprivation of capital.

a childs savings are discounted if the parent/guardian has no access to them. but they can't increase/continue their own benefit entitlement by depositing their own money into a childs account

NYM

nannytone wrote: »

no it isn't as it would be deprivation of capital.

a childs savings are discounted if the parent/guardian has no access to them. but they can't increase/continue their own benefit entitlement by depositing their own money into a childs account

Thanks nanny. I was fairly confident that was the case.

fluffymovie

tea-bag wrote: »

Another one who wants all the cake!

Teabag, this board is intended to be for help and advice not outright criticism, it only serves to stop those genuinely seeking help.

OP, I think you have had some useful advice here and some not so useful and I think, for what it's worth, that trying to get yourself out of the rented sector and into property that you have a stake in, is a very reasonable wish. Unfortunately, it doesn't look like something you will be able to do for a while and as such, you have to make a reasoned decision.

In HB, for every £250 you have over £6000, we add £1 per week to your actual income. If your likely inheritance is less tha £16,000, this may still mean some HB and you can invest the money.

I might soound a bit patronising here so apologies but I would advise you to seek financial advice no matter what options you consider as if you have a poor credit history already, it may suggest that you have little experience with having large sums and I have often seen people go a bit crazy with cash and are left with nothing at the end of it and still not getting certain benefits.

Whatever you decide, I wish you luck and am also sorry that you have lost your Mum. Good Luck x

Scarlett1251

If I was you I would make sure all my debts were paid off first - everything from credit cards, overdraft to student loans. Then I would pay for anything else I needed eg new car, other upgrades. Then I would put 6k in a savings account and review the situation. It may be after paying for debts and essential items you are under the limit anyway.

Indie_Kid

Scarlett1251 wrote: »

If I was you I would make sure all my debts were paid off first - everything from credit cards, overdraft to student loans. Then I would pay for anything else I needed eg new car, other upgrades. Then I would put 6k in a savings account and review the situation. It may be after paying for debts and essential items you are under the limit anyway.

This may be seen as deprivation of capital.

nannytone_2

Scarlett1251 wrote: »

If I was you I would make sure all my debts were paid off first - everything from credit cards, overdraft to student loans. Then I would pay for anything else I needed eg new car, other upgrades. Then I would put 6k in a savings account and review the situation. It may be after paying for debts and essential items you are under the limit anyway.

you can only pay debts that are 'due'
paying off a credit card in full or a loan early would still be classed as deprivation of capital

rogerblack

nannytone wrote: »

you can only pay debts that are 'due'
paying off a credit card in full or a loan early would still be classed as deprivation of capital

May.

It depends on many factors, including for example interest.
If, for example, you were only entitled to JSA at 76? pounds a week, and had borrowed 8K on a 49% card, and had 10K savings, your position is rather different than if you have a debt on a 0% interest card that goes for another 2 years yet.

In the first case - even if you are not eligible for benefit, the interest payments are so high that it may be considered reasonable to pay it off in full.

The key word is may - this is a decision made by individual decision-makers. You can get a yes-or-no decision which is binding on later DMs, by asking - reportedly.