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Temporarily Over £6000 Limit For ESA
KellyKoo
Posts: 70 Forumite
My mum is giving me £4000 via a Bank Transfer to help with the cost of a car. This will push my savings to £6500. I am aware I have to declare savings of over £6000 when claiming ESA.
The money is likely to be in my bank account for less than a few days. Do I still need to advise the DWP / Housing Benefits.
The money is likely to be in my bank account for less than a few days. Do I still need to advise the DWP / Housing Benefits.
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Comments
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Do it cash. Solves the problem. If it goes into your bank it could cause issues. It could be questioned as to why it's there (although you can show why) and then they may consider a 4K car excessive.
Do it cash and then you have no problems0 -
My mum is giving me £4000 via a Bank Transfer to help with the cost of a car. This will push my savings to £6500. I am aware I have to declare savings of over £6000 when claiming ESA.
The money is likely to be in my bank account for less than a few days. Do I still need to advise the DWP / Housing Benefits.
Actually you need to declare that you are getting £4000, As this is a change of circumstances, Any income related benefits require claimants to declare any capital they gain regardless of how long you will have it.
If you were to get a benefits review say somewhere down the line, They might decide you were overpaid regardless if your not over £6000.
This happened to me a while ago, I didn't declare funds and was ordered to pay £1000 plus a £50 fine.... I might add the money was from an online hobby, Not working on the side :P0 -
paragon909 wrote: »Any income related benefits require claimants to declare any capital they gain regardless of how long you will have
This happened to me a while ago, I didn't declare funds and was ordered to pay £1000 plus a £50 fine.... I might add the money was from an online hobby, Not working on the side :P
Not quite true.
JSA claimants need to declare any income from paid work (as well as declaring any voluntary work).
Declaring any capital would be impractical for the JCPs to deal with, eg every gambling win, £5 bank card cashback and so on.
Sorry to hear that happened to you - but it sounds like a £50 civil penalty, which is for things including not declaring £ from paid work.
Claimants do need to declare if their capital exceeds the means tested trigger limits of £6k and £16k. As far as I remember there's caselaw that £ going into and out of the account on the same day does not count, as it didn't affect the balance or interest accrued, as with house sales and the proceeds of a Will.Please be polite to OPs and remember this is a site for Claimants and Appellants to seek redress against their bank, ex-boss or retailer. If they wanted morality or the view of the IoD or Bank they'd ask them.0 -
I am happy to declare, I once worked in Housing Benefits and I heard every excuse under the sun for not declaring benefits. My relative is already happy to sign a statement saying he has given / loaned me the money towards the cost of a car.
To be honest, it looks like I am getting priced out the car market with insurance quotes, so this thread might be a waste of time!0 -
marliepanda wrote: »Do it cash. Solves the problem. If it goes into your bank it could cause issues. It could be questioned as to why it's there (although you can show why) and then they may consider a 4K car excessive.
Do it cash and then you have no problems
I am not so keen to walk around with 4K in my pocket, especially in the town I live in. Plus the relative can't get to the bank to withdraw such an amount. I am not sure a car which will cost 5K (and a half) excessive, especially since one of the reasons I wanted to pass my driving test was to get off benefits and find a part time job, sadly the insurance quotes though are coming in a crazy prices and so it looks like I am being priced out the market.0 -
I am not so keen to walk around with 4K in my pocket, especially in the town I live in. Plus the relative can't get to the bank to withdraw such an amount. I am not sure a car which will cost 5K (and a half) excessive, especially since one of the reasons I wanted to pass my driving test was to get off benefits and find a part time job, sadly the insurance quotes though are coming in a crazy prices and so it looks like I am being priced out the market.
Most 'first cars' are 2k or less, I am not saying they definitely would see it as excessive, but many people not on income related benefits would not be spending 5.5k on a car
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Don't spend that much on your first car!... All my daughter's we're handed the keys to a £500 bone shaker each when they first passed their test, mechanical sound but perfect for cutting their teeth so to speak... I passed my test just after I got married 25 years ago and 3 weeks later side swiped my husband's brand new car all down one side on a lamppost.... He still brings the flaming thing up now...
Go for something older and a cheaper insurance group.0 -
Don't spend that much on your first car!... All my daughter's we're handed the keys to a £500 bone shaker each when they first passed their test, mechanical sound but perfect for cutting their teeth so to speak... I passed my test just after I got married 25 years ago and 3 weeks later side swiped my husband's brand new car all down one side on a lamppost.... He still brings the flaming thing up now...
Go for something older and a cheaper insurance group.
How ironic... I did the same in a relatives car last month, had not even had my licence a month. Car needed a new door skin! Although it was the owners fault, telling me I could get past a big wagon, I knew I couldn't, I tried and caught the drivers door on a metal fence! Taught me to trust my own instincts and not listen to others!
I think it might have to be a cheaper car or stick with the bus!0 -
marliepanda wrote: »Most 'first cars' are 2k or less, I am not saying they definitely would see it as excessive, but many people not on income related benefits would not be spending 5.5k on a car
I am finding it difficult to find an automatic for less than 2k, I think the cheapest I have found this month was a Fiat Panda 09 plate for £2450. It was immaculate outside, but the inside stank of stale smoke!
I do think I can be a bit fussy, I should perhaps be more realistic. The more I think on this, and look at insurance the more I think I should just wait a little longer.0 -
How ironic... I did the same in a relatives car last month, had not even had my licence a month. Car needed a new door skin! Although it was the owners fault, telling me I could get past a big wagon, I knew I couldn't, I tried and caught the drivers door on a metal fence! Taught me to trust my own instincts and not listen to others!
I think it might have to be a cheaper car or stick with the bus!
Never listen to anyone else!
Look for insurance with a black box fitted that should bring your premium down a little.0
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