Is a benefit back payment classed as capital (savings)

Camey

Currently I have £5,000 in my savings' account which is the remainder of £9,000 awarded to me by DWP as back payment back in 2013. They lost my appeal decuments after 4 years of waiting and living on a very reduced amount. Now I'm on ESA (Support group)

A couple of weeks ago, I made a transfer of £500 from my savings' account into my other account to pay back some debt I owed and DWP found out and I recieved a letter from them asking me to attend an interview to review my claim. I'm aware that my current savings is £5,000 which does not affect my entitlement for benefits. However, two months ago there was £7,000 in my savings' account.

My question is, will my back payment be classed as savings after a certain period, say a year or so, or will it be disregarded since it's a benefits' back payment? I was asked to bring all my bank statements for the last 3 months which will show that I had £7,000 in my savings' account.

I'm extremely worried and desparately need some advice. I very much appreciate your responses. Thank you in advance.

Caz3121

backdated benefits would be ignored for 52 weeks after which time they would count as savings

Camey

Thanks for your input. Does that mean that they will deduct the amount I recieve now since my savings were over the threshold of £6,000 just a few months ago?

Mersey_2

Essentially redress is not profit/income.


Also remember that the £6,000 threshold re means-tested benefits is essentially net (a Tribunal ruled that an overdraft - as it was repayable on demand - could be deducted from gross assets to give the net figure). So eg a claimant with £8k in savings and a £3k overdraft would be deemed to have £5k capital (their net assets). You mentioned debts so this may be applicable to you. Although you can't deduct all debts such as loans and credit cards from your savings.

Camey

Thank you Mersey. According to what you said, I think I'll be fine.

You said I can't deduct loans and credit cards from my savings. Can you explain why is that?

Mersey_2

You can't deduct medium to long-term debts (only those which are repayable on demand to give your net assets figure).

Camey

I appreciate your responses Mersey, but still I'm confused and unable to understand; your words are just too technical for me. I don't seem to find any concrete answers to my question. Is my backdated payment classed as savings? That's all what I needed to know and this is my first post.

Anyways, thanks for your replies.

Tommo1980

Yes it will most likely be counted as savings. You have held onto the money for to long.

Get all your paperwork together and get some advice from your local cab before the interview.

Tom

Camey

Thank you Tom. Really appreciate it.

Will get all my papers together and see the local advice centre.