Tax Credits, Housing Benefit and Inheritance - help please?

Emu1

My partner works 32 hours and I am a full time mum. We receive tax credits (working and child) and a small top up of housing benefit. I pay most of our rent but think we are just eligible for £5 or so per week.
We do not receive any council tax benefit.
My father passed away earlier this year and I have just discovered that I've been left a large sum of money - appx £30k
I've never known this kind of money in my life. Instead of being delighted (which I'm sure my Dad would want me to be!) I'm terrified!
What do I do about tax credits? Will they completely stop? I'm worried that all I will end up doing is using my Dad's life long savings to replace the money we'll be losing in benefits! As we currently receive around £160pw to top up my partner's low wages (he's on 9k pa), in 4 years the inheritance would be gone! I'm a frugal person (I've had to be!) so won't be going on silly spending sprees or getting my hair and nails done... I'm a bit lost and confused 😕 What do I do now?

t0rt0ise

Lucky you, being able to pay for things yourself instead of relying on benefits. I'm the same, able to work part-time because I have savings to help out. I'm glad I saved when I did so that I can take it a bit easy now. Enjoy your freedom from benefits.

cliffandsue

t0rt0ise wrote: »

Lucky you, being able to pay for things yourself instead of relying on benefits. I'm the same, able to work part-time because I have savings to help out. I'm glad I saved when I did so that I can take it a bit easy now. Enjoy your freedom from benefits.

Which benefit are you referring to that the OP is receiving?

All I can see is possibly £5 a week housing benefit. Tax Credits is not affected by capital (although the interest on it may be).

cliffandsue

Emu1 wrote: »

My partner works 32 hours and I am a full time mum. We receive tax credits (working and child) and a small top up of housing benefit. I pay most of our rent but think we are just eligible for £5 or so per week.
We do not receive any council tax benefit.
My father passed away earlier this year and I have just discovered that I've been left a large sum of money - appx £30k
I've never known this kind of money in my life. Instead of being delighted (which I'm sure my Dad would want me to be!) I'm terrified!
What do I do about tax credits? Will they completely stop? I'm worried that all I will end up doing is using my Dad's life long savings to replace the money we'll be losing in benefits! As we currently receive around £160pw to top up my partner's low wages (he's on 9k pa), in 4 years the inheritance would be gone! I'm a frugal person (I've had to be!) so won't be going on silly spending sprees or getting my hair and nails done... I'm a bit lost and confused �� What do I do now?

Any amount of capital does not affect Tax Credits.
You may well lose the £5 housing benefit, but you do need to clarify this with the council.

NYM

:think: That's odd, I thought WTC was a means tested benefit.

ceredigion

NYM wrote: »

:think: That's odd, I thought WTC was a means tested benefit.

On income not wealth

Indie_Kid

NYM wrote: »

:think: That's odd, I thought WTC was a means tested benefit.

On income and the taxable interest.

You'll lose housing benefit, which you can't claim if you have savings over £16k.

cliffandsue

NYM wrote: »

:think: That's odd, I thought WTC was a means tested benefit.

It is to some degree. But unlike IS, ESA, GPC or JSA, capital isn't counted - only the interest that it earns.
you could have £5m in your bank accounts and investments, but only the interest that is earned over the first £300 is taken into account.

Hence why some wealthy people chose to earn a low income (be it reduced hours or type of work), to receive maximum Tax Credits as a top up for their earnings FOC. HMRC aren't interested in whats in the bank, only with what you earn

ceredigion

cliffandsue wrote: »

It is to some degree. But unlike IS, ESA, GPC or JSA, capital isn't counted - only the interest that it earns.

Unless the interest is generated within an ISA

cliffandsue

ceredigion wrote: »

Unless the interest is generated within an ISA

Obviously, ISA;s are tax exempt

I still feel that it is not right that there are limits with ISA's. You should be allowed to invest as much as you want (and it would solve a long standing problem for me).

Emu1

Thank you everyone - I don't mean to come across as 'greedy' and being free from benefits will be fabulous of course. I just don't want my dads life savings to go on bills!!
So, Monday morning I'll contact my housing office and guess I inform Tax Credits of a change in circumstances? What kind of interest would I get on £30k?
Sorry to sound dense, it's not the world I've ever lived in! ��