Deprivation of capital

rogerblack

baza52 wrote: »

As you cannot deprive yourself of income any non means tested benefits could be withdrawn in cash and deposited under the mattress etc.


(before anyone says im advocating fraud Its a legal way of doing things)

You are advocating fraud.
Cash counts, as do share certificates, gold bars, ...
Only personal possessions are exempt. Cash is not personal, and concealing it and not reporting is fraud.

HappyMJ

Yes it is fraud as cash does count...so how about spending it on something such as building up a store cupboard maybe buy a years worth of food over the next few months. I'm sure that won't count.

konark

so how about spending it on something such as building up a store cupboard maybe buy a years worth of food over the next few months. I'm sure that won't count.

Won't it go off?

HappyMJ

konark wrote: »

Won't it go off?

Most food can easily last a year.

Tinned and most packet foods don't go off. Food can also be frozen. That's another thing. A new larger freezer might be needed.

baza52

HappyMJ wrote: »

Yes it is fraud as cash does count...so how about spending it on something such as building up a store cupboard maybe buy a years worth of food over the next few months. I'm sure that won't count.

so if cash and gold bars etc count why does a pallet of baked beans not count?

Torry_Quine

patman99 wrote: »

Anyway, if the money pushes her over the £16k limit, she would then ahve to reclaim ESA once the capital drops below the £16k and keep informing them of changes as the capital drops by each £250, as this means she then gets an imediate increase in benefits.

She wouldn't have to reclaim as her claim would remain open but just pay her NI contributions.

HappyMJ

baza52 wrote: »

so if cash and gold bars etc count why does a pallet of baked beans not count?

They count as personal possessions and they don't count.

Although I wouldn't be buying a pallet of just beans. You might look like a business. That's also quite a lot of beans. There's 1,500 tins of beans on a pallet. You just need to buy let's say an extra 20-30 cans in each weekly shop for 3 months. Eventually you'll have around 365 cans of lots of different things then work through the store cupboard each day replacing what you use.

Gold jewellery doesn't count but a gold bar does. It's quite complex.

baza52

So hypothetically you could buy jewellery with the non means tested benefits.


Im not saying you are wrong but the reason im questioning you is for clarity.

HappyMJ

baza52 wrote: »

So hypothetically you could buy jewellery with the non means tested benefits.


Im not saying you are wrong but the reason im questioning you is for clarity.

Hypothetically yes...but it's really not an essential expense so might not get past the deprivation of capital rules if it's costing more than the fortnightly/monthly payment. Any existing jewellery that someone happened to own for quite a while doesn't count as capital.

baza52

thanks HappyMj.


Im asking about deprivation of income rather than assets or capital.
For example. The person concerned could buy jewellery with their non means tested benefits while using capital to pay for living expenses.