Housing Benefit/Savings.

LJI1976

Hi all just a question/query if anyone can help would be great.

I am currently off work sick and not sure when I'll be back working, I have been on SSP (£88.45) since 2 weeks ago which is ofc a lot less than I get when working and get about £22 WTC a week... My partner lives with me be is currently out of work.

I have put a claim in for housing benefit/Council tax benefit as we will be living on £110 per week and rent is £80pw CT is £115pm when showing the lady our bank statements for the account we own (3 in total) our savings come to 11k and she said we will lose £1 per £250 over 6k so that would be £20 per week... Is that £20 per week off HB/CTB combined? Or £20 per week off HB then a further amount off CTB? Checked turn2us/entitled to but neither deduct anything off the HB/CTB when inputing the savings.

The main question I have is as we will have to top up to cover the rent/council tax atleast £20 PW that is going to leave us £90pw for bills... I know as we have savings were liable to pay towards because of it and thats not a problem but just so I can explain I'll use this as an example if a couple were to claim JSA without savings they would have £115ish a week to live off and ct/rent paid fully so we have a shortfall of £25 per week what the government says you should live on which off I can top up with my savings.

Here's my question I have, I have read on these forums about deprivation of assets am I able to spend my savings on bills/clothes/food without getting into trouble? Also for example if my laptop/television broke am I allowed to buy one to replace it? Unsure of the rules regarding savings and claiming benefits... Also as my savings dwindle lower down when/how often do I inform the council so I get the right amount of benefit due?

Sorry if my post has become long winded... Thanks for any replays/help I get.

Lisa.

Mersey_2

It's the level of sayings which are relevant, not the fact that you have some.


Over £6,000 of savings should be declared to the local authority.


An overdraft (if used) can usually be taken off gross savings to give the net savings figure, after an Upper Tribunal ruling.

bigbill

Your below your HB allowable amount so you should get full rent and almost full CT help as well, assuming you have no other adults in the house?

nannytone_2

bigbill wrote: »

Your below your HB allowable amount so you should get full rent and almost full CT help as well, assuming you have no other adults in the house?

the OP is NOT below the allowable amount.
they have savings of 11k.

you are only allowed savings unto 6k before housing benefit/council tax support is affected.

over 16k and no benefit is payable at all.

OP ... the savings will reduce BOTH housing benefit and council tax support by £20 each per week

Alice_Holt

bigbill wrote: »

Your below your HB allowable amount so you should get full rent and almost full CT help as well, assuming you have no other adults in the house?

As this is wrong, perhaps bigbill could delete / amend his misleading post.

See: http://www.manchester.gov.uk/info/500180/housing_benefit/4265/how_savings_investments_and_property_affect_your_housing_benefit_and_council_tax_support/2

LJI1976

nannytone wrote: »

the OP is NOT below the allowable amount.
they have savings of 11k.

you are only allowed savings unto 6k before housing benefit/council tax support is affected.

over 16k and no benefit is payable at all.

OP ... the savings will reduce BOTH housing benefit and council tax support by £20 each per week

Hi thanks for the reply, so would the council understand that I am going to have to use money from my savings to pay the amount (possibly £40 if your correct) I am losing due to the savings exceeding the 6k limit?

Also what can I spend my savings on without causing deprivation of capital and getting in trouble?

For example could I go out and buy a new TV? Buy clothing? Go on Holiday? Could I pay a bill off in full that I was paying monthly (water rates for example) to lower my savings?

Also when do you inform the council that you have less savings? Everytime I use £250? Or say every 1k? I am not sure on that.

It's seems a minefield, part of me wishes I wasn't so frugal and didn't save the money and spent it as we earned it... Most of it was saved over the last 2 years when me and my partner were both working and we didn't go on holidays abroad, didn't go out eating much and as neither of us smoke, drink or drive so we had a lot of disposable income that could have been spent on things we didn't exactly need/wanted so it just piled up.

Hopefully I get back to work soon it's looking like about 6 weeks all being well then things will be back to the status quo.

Lisa.

baza52

you are perfectly entitled to have a holiday, new car (secondhand, no more than 5k), re carpet your house, decorate your house, replace appliances etc.

Just keep any receipts or leave a paper trail for large purchases just in case they want to see proof of how you spent the money.

You could in theory PX a car you currently own and use 5k to put towards it to upgrade.

A holiday abroad for you and a partner at £1000 is unlikely to be questioned either.

Bo doubt people will say you need to get these purchases approved and in writing from DWP but when I was in your position not many months ago it was not needed nor was any of my spending questioned when I updated them with bank statements.

baza52

oh just to add, I did get a car, had a holiday, redecorated and replaced appliances as well as clearing a CC bill for 5k.
My capital dropped quite quickly and I had a lot more than you currently have.
I could have updated them for every £250 I dropped but just notified them when I was under the 16k limit , then at about 10k and finally when I dropped below 6k.

tboo

The below is a rough estimate
The £20 will be added to your income to use in the assessment
ssp and wtc and £20 capital tariff = applicable amount (AA)
£88.45 + £22 + £20 = £130.45 - £10 for working = £120.45 income
couple rate if one or both over 18 = £114.85
£120.45 - £114.85 = £5.60 excess * 60% = £3.36 for you to pay towards your rent
Rent £80 per week -£3.36 = £76.64 HB

If you work 30 hours per week and have dependant children the above will be different
If you haven't claimed HB in the last 52 weeks then you are entitled to the 13 week rule of full HB then reduction after that

Not sure on CTR as different schemes in every council