How does the savings limit work for couples?

roberts100

My partner and I are in the ESA support group, on a joint claim. My initial understanding is that we were only allowed £6,000 in savings. Does this mean combined or invidivually, for example is the limit actually £12,000 combined but £6,000 individually? Or are we treated as one entity due to the joint claim? But I'm reading in various places about an upper limit of £16,000, and that you cannot claim income-related if you have over £16k.

I'm due to get an inheritance but I'm confused. If I take over £6,000 of that inheritance, but under £16,000 - does that mean my benefits are unaffected? Or does it mean that I can have it but once it goes over £6k my ESA will be reduced by a certain amount?

Ames

I assume it's an income based claim not contributions based?

As it's a joint claim the savings are the same as for an individual. Above 16k entitlement to means tested/income based benefits stops. Below 6k you keep full entitlement. For every £250 or part thereof between 6k and 16k you lose £1 a week.

I'm not sure what you mean by 'if you take' your inheritance? Surely the amount of inheritance is what it is?

If you're suggesting that, for instance, your inheritance is 20k but you'd only take 15 and give the other five to someone else then you can't do that. You'd be treated as though you still have the full 20k. Look up 'deprivation of capital' and 'notional capital'.

roberts100

It's income based, yes.
It's not an official inheritance, a family member has the inheritance but is dividing it between relatives. They are trying to work out what amount wouldn't affect my benefits. There's no document to say 'roberts100 is to recieve <amount>' it's basically a voluntary gift. Would that still be seen as deprivation of capital?

So if I recieve £10k for example, what do I do to make sure I'm not braking any rules? Do I just tell DWP and they recalculate everything?

Ames

No, if a relative just wants to give you a gift then they can and it's fine.

Yes, you'd tell the DWP and they'd recalculate your benefits.

You'd then tell them when it dropped below 6k, although I don't know how it would work with each time it dropped below another £250.

Would you be keeping it as savings or do you have things you want/need to buy?

roberts100

So say I was given £10k, so thats £4,000 above the savings limit.
4,000 / 250 = 16
so my benefits would go down by £16 a week? Am I understanding it right?

I suppose I'd keep the majority in savings and put some of it towards home improvements, a car, debts etc. Nothing very luxurious lol. I don't know exact figures though since I haven't received anything.

[Deleted User]

You are correct that 10k would reduce IR benefits by £16 per week, they would then from time to time ask for proof of savings and adjust accordingly. You can't use the capital to pay off any debts that aren't due immediately for payment, and whilst you could buy a car a rolls royce would be out of the question.

rockingbilly

roberts100 wrote: »

My partner and I are in the ESA support group, on a joint claim. My initial understanding is that we were only allowed £6,000 in savings. Does this mean combined or invidivually, for example is the limit actually £12,000 combined but £6,000 individually? Or are we treated as one entity due to the joint claim? But I'm reading in various places about an upper limit of £16,000, and that you cannot claim income-related if you have over £16k.

I'm due to get an inheritance but I'm confused. If I take over £6,000 of that inheritance, but under £16,000 - does that mean my benefits are unaffected? Or does it mean that I can have it but once it goes over £6k my ESA will be reduced by a certain amount?

Capital limits apart.
You cannot just 'take' a part of the inheritance to maintain your entitlement to benefits. Your full inheritance is what matters not how much you take of it.

teddysmum

venison wrote: »

You are correct that 10k would reduce IR benefits by £16 per week, they would then from time to time ask for proof of savings and adjust accordingly. You can't use the capital to pay off any debts that aren't due immediately for payment, and whilst you could buy a car a rolls royce would be out of the question.

Of course you can spend the money how you please, but not all will be taken as legitimate reason for reducing the savings, so you'd be assumed to still have any not allowed spend. eg buying expensive items beyond what is normal or paying debts which are not due (for instance a loan which has been calculated to take 12 payments or a mortgage which has years to pay it off) immediately.

Ames

rockingbilly wrote: »

Capital limits apart.
You cannot just 'take' a part of the inheritance to maintain your entitlement to benefits. Your full inheritance is what matters not how much you take of it.

If you read the follow up post it's not actually an inheritance, it's a gift from a relative who has received an inheritance.