Car and deprivation of capital

GirlFromMars_2

Ames wrote: »

That's my point - a motability car costs nearly 9k over three years with nothing to show at the end. I'd like to get a car which will last me around a decade for about 6k. To me the maths make sense, but I'd like a range of views before I make a decision.

The difference of course being that a motobility car is paid from my income during the three years, buying a car would be on top of my income.

I've been used to new cars for 8 years, but had bangers before that. It's not the 'newness' that I'm bothered about, more the reliability and longevity. I can do without fancy extras, but I don't want something that's going to disappear for a week or two a year at MOT time having lots of work done to it.

I decided to skip motability & save/buy a car from my DLA. It just made more sense to me with the nature of my condition & the possibility of failing a DLA/PIP transition. (Although I actually think I'm more likely to get PIP with the 50% of the time rule as my condition is variable.)

Motability is invaluable for people who need adaptations to the car, but if you can drive a regular manual/automatic, then it's value is more questionable, especially if you are on a lower income, and cannot afford to pay £9000 over three years & come away with nothing.

It's your decision, but I completely understand why you are exploring this option.

TELLIT01

With an inheritance of £47k you will be off income related benefit for quite a long time. I really don't think spending £6.5k on a car is likely to create a problem as you have shown here that you can easily justify the spend. I would just advise caution with other spending to ensure that there are no grounds for DWP or others claiming deprivation of capital once you do drop down to a level where you would be able to claim Income Related benefits. Keep all receipts for major purchases. By 'major' I mean any single purchase of more than a few hundred pounds.
You capital will diminish much more quickly than you might expect when all bills have to come from it. Council tax, Housing costs and any other items which you previously had assistance with will suck money from that inheritance. Just day-to-day living costs will have a marked effect.

Ames

Girlfrommars - I read someone on here describe motability as Brighthouse for cars, which for people who don't need expensive adaptations is spot on IMO.

Tellit01 - I will have several expenses over a few hundred pounds. I need to get carpet/other flooring for my whole flat, and pay someone to redecorate it all. I also have university tuition fees to pay, but they're only £750 a year as I get a bursary, plus £260 to cover a grant I'll no longer be elibile for.

I've already been keeping receipts for things I've bought for my new place out of existing savings.

It's actually quite scary to work out how short a time it will take to get below £16k.

I'm planning/hoping to put it away in a saving account and draw down an amount equal to what I get now in means tested benefits probably every 3 months. If I can, I want to pay my rent and council tax upfront for a yearso that at least that's sorted if there are any problems.

GirlFromMars_2

Good luck with whatever you decide, hopefully the transition off & back onto disability benefits will be smooth. And hopefully it won't be too long before you can get around to decorating as well!

missbiggles1

Ames wrote: »

Girlfrommars - I read someone on here describe motability as Brighthouse for cars, which for people who don't need expensive adaptations is spot on IMO.

Tellit01 - I will have several expenses over a few hundred pounds. I need to get carpet/other flooring for my whole flat, and pay someone to redecorate it all. I also have university tuition fees to pay, but they're only £750 a year as I get a bursary, plus £260 to cover a grant I'll no longer be elibile for.

I've already been keeping receipts for things I've bought for my new place out of existing savings.

It's actually quite scary to work out how short a time it will take to get below £16k.

I'm planning/hoping to put it away in a saving account and draw down an amount equal to what I get now in means tested benefits probably every 3 months. If I can, I want to pay my rent and council tax upfront for a yearso that at least that's sorted if there are any problems.

Aren't you eligible for student loans?

Ames

missbiggles1 wrote: »

Aren't you eligible for student loans?

No, because I'm part time I don't get anything for living costs (just the £260 grant) and because I've taken two years out due to personal reasons I effectively lose two years of loan eligibility for tuition fees. But at least I'm on the old fee schedule so only have to pay £750 a year instead of £4500.

KxMx

Ames wrote: »

I didn't think SDA was income based.

But I also thought that I wouldn't be able to claim CB ESA because of not having contributions - I thought that NI credits from being on benefits only counted towards the pension, not other benefits? Or is there some transitional protection?

Although it could all change again in a couple of weeks when we have the budget.

When transferring to ESA (providing you pass the WCA) the "normal" qualifying rules don't apply. It all depends on whether the previous benefit was income based or contributions.

Income based: ESA IR. Contributions based: ESA CB. Both: ESA IR.

For example, I claimed IB under the youth rules, and as such was transferred to ESA CB.

Even though I got sick pretty much straight out of college and had nowhere near enough contributions.

See what I mean?

Ames

Yes, that makes sense, thanks.

pmlindyloo

According to this link your severe disablement allowance will convert to contribution based ESA.

http://www.citizensadvice.co.uk/pages/national_roll-out_for_incapacity_benefit_assessments_/

This would mean that you would still get this but lose the income related top up.

Of course any HB/CT support would stop because of the savings.

Ames

OK, that's better than I was expecting. But means a whole load more maths to do!