Possible gift to a benefit recipient

DoshDabbler

Has anybody here got experience of receiving a monetary gift, while on means-tested benefits?

I understand that the "capital limit" of £16,000 means that the recipient immediately loses their benefits, and that he must live on the capital for a few years. He can however re-apply for benefit as soon as his capital falls below £16,000.

I was wondering if the freedom from the restrictions was in any way beneficial, for example by making it easier to get a job, find somewhere else to live, or just making life better?

Alternatively, were there problems. For example, did the rules about not deliberately depriving oneself of capital make the process of re-applying difficult?

Ames

Having money in the bank makes things easier in the same way it does for everyone else.

Spending will be scrutinised when reapplying. The claimant could be deemed to still have the money if it's decided they spent it in order to claim benefits.

Longer term if coming off 'old' benefits means that the new claim has to be for universal credit they could be a lot worse off over time as UC tends to be less than old benefits.

All the above only applies to means tested benefits, for contribution based benefits or DLA/PIP/AA or tax credits savings don't count anyway.

pipkin71

When I was in receipt of ESA, there was never any issue over the monetary gifts I received, as they were gifts. The only interest the DSS had was when I went over the limit of £6.000 but benefits were then reduced accordingly.

Afraid_of_Kittens

A cash gift is disregarded as income. If it is left in a bank account then it automatically gets treated as capital - no disregard.

DoshDabbler

Lots to think about - thanks everybody.