Question about the savings limit while on benefits and losing £1 for every £250 over £6000

pcb123

So I'm wondering how the income tariff works, if I were on means tested ESA and housing benefit and had £6250 for example, would I lose £1 a week for every means tested benefit I'm on? so if it was getting ESA + HB would that be £1 a week I lose from each of those so that I'd be losing £2 a week? Or still just £1 overall

Ames

You'd lose £1 from your ESA. As long as you're getting any amount of income related ESA then you'll get full housing benefit.

poppy12345

Ames wrote: »

You'd lose £1 from your ESA. As long as you're getting any amount of income related ESA then you'll get full housing benefit.

I disagree, the OP would lose £1 from all means tested benefits and not just ESA.

tazwhoever

Ames I agree with you as that's what happened to me when on IB ESA. But I don't disagree with Poppy12345.

poppy12345

tazwhoever wrote: »

Ames I agree with you as that's what happened to me when on IB ESA. But I don't disagree with Poppy12345.

That makes no sense, if a person is claiming any means tested benefits and have savings of more than £6,000 then surely it affects everything and not just one benefit.

Afraid_of_Kittens

If you are on ESA IB the deduction would be taken from ESA IB.

There would be no impact on HB.

If you were in receipt of ESA CB the deduction would be taken from your HB not your ESA.

poppy12345

Thanks, you learn something new everyday. I've never had any savings so it's never applied to me.

bspm1

Sunny_Intervals wrote: »

To be fair, the £1 per £250 is ridiculous and out of date. How many benefits claimants are getting a consistent 4.8% APR return on their savings?

I'd rather they were honest and called it a "weekly savings reduction amount" or something.


ETA - Actually, I think that 4.8% is low. That's £1 a month, not a week. Sorry, brain full of PIP silliness.

I am, well on quite a chunk of my savings anyway.

bspm1

Sunny_Intervals wrote: »

See edit. I screwed up the calculation. £1 a week is £52ish a year. More like 20% APR, I think. Check my maths, though. Like I said, my brain is full of other nonsense at the moment.

How they work out the formulae to get at £1.00 per £250 is antiquated and not what I was commenting on.

I just answered your question on 'how many people are getting a consistent percentage of close to 5% on their savings', like I said I am, it is possible.

bspm1

Sunny_Intervals wrote: »

You said you were getting it on a chunk of your savings--not all of it. I could get 5% on some of my savings using regular savers, but not consistently across my savings.


Do you mind if I ask how you're doing it? The best I'm getting at the moment is 3% in my Tesco accounts.


(Apologies for the tangent, but I think getting a decent return on savings would benefit the OP too if they're going to have their benefits reduced for going over £6000.)

We are a couple so obviously we are able to open more accounts....

First Direct 5% ................£300.00 per month x 3 Regular Savers
Nationwide 5%.................£2500 x 3 Current accounts
Nationwide 5%.................£250.00 per month x 3 Regular savers
TSB 5%..................£1500 x 3 Current accounts
M & S 5%.................£250.00 per month x 3 Regular savers
HSBC 5%.................£250.00 per month x 3 Regular savers
TSB 2% Boo £ 250.00 per month x 1 Regular savers
Tesco 3% Boo..........£3000 x 3 Current accounts


Obviously I need a spreadsheet, call it my hobby , I drip feed in to all the accounts, when one closes we reopen another.
:j

Afraid_of_Kittens

They have used this formula since at least 1988.