Income from family members

DivineSaver

Hi all,

I have tried phoning and emailing the DWP but keep being given the wrong information so I wanted to see if anyone here could help me.

I am looking to start making yearly gifts to my parents (at Christmas time). They are currently in receipt of benefits (not sure which) and I don't want them to come across any hassle as a result of me doing this.

I have had a look online and there is nothing on the Gov UK website but I've found a bit of info on Entitled To which states that this would not impact on their benefits. https://www.entitledto.co.uk/help/benefits-charity

I wonder if anyone would be able to confirm this? And if so, does anyone have an idea on if there is a limit to the amount of money I can give them?

Thanks in advance

Alice_Holt

That is certainly my understanding - that gifts from family members are disregarded for the calculation of means tested benefits.

Here is an example re HB and CTs:
https://secure.manchester.gov.uk/info/200008/benefits_and_support/4276/the_money_we_count_when_we_work_out_housing_benefit_and_council_tax_support/3

If this money is retained and added to savings - then there may be an impact should it cause savings to go over the limits for means-tested benefits.

[Deleted User]

But when sitting in their bank account and totalling over the savings limit it will effect them?

pmlindyloo

It would help to know which benefits they are on.

So, Pension Credit has no limit for capital but anything over £10000 (between them ) is counted as income and deducted from PC at the rate of £1 for every £500.

If they are on JSA/Universal Credit then the capital limit is £16000 and any capital over £6000 is deducted from their award at the rate of £1 for every £250 over the £6K up to the £16K. (Slightly different for Universal Credit.) Over £16K no benefit entitlement.

PIP/DLA/AA is not means tested so savings do not affect this.

If they are only claiming housing benefit then this also has a capital limit of £16K and any amount of savings over £6k (£10K if over 60) reduce the HB by £1 for every £250 over the £6k up to £16K. over £16K no entitlement to HB.

Council Tax reduction rules vary from council to council unless they are receiving Guarantee Pension Credit.

So, you could give them money as long as they were not over the capital (savings) limit for that particular benefit.

If you can't ask them what benefits they are receiving for some reason then you can tell us their ages and circumstances - working? renting? disabilities? and we may be able to figure it out.

Gifts are usually disregarded for means tested benefits BUT it can cause problems as the DWP/council will often stop payments if they are aware of any large amounts of money going into their bank accounts and then investigate.

This can be a hassle to sort out so general advice is to find another way rather than the money going into their account. So, gift vouchers/paying for household appliances yourself etc etc

Much depends on the benefits they are claiming and whether they already have some savings or whether you gift them amounts which take them over the lower limit.

xylophone

I have tried phoning and emailing the DWP but keep being given the wrong information so I wanted to see if anyone here could help me.

They are currently in receipt of benefits (not sure which) and I don't want them to come across any hassle as a result of me doing this.

How can DWP give you accurate information if you can't give them accurate information?

parkrunner

Give them cash.

DivineSaver

Thanks everyone for your replies. Very helpful

xylophone The DWP gave me information about volunteering while on benefits which wasn't what I asked about. It seems they send out automated emails based on keywords.
parkrunner That was their suggestion but for personal reasons, I am not comfortable doing that.

I know they're in receipt of housing benefit, and my dad gets disability benefit and PIP.
I would assume they're getting jobseekers too because although they're both over 60, they're not at pension age yet.

calcotti

DivineSaver wrote: »

I know they're in receipt of housing benefit, and my dad gets disability benefit and PIP.
I would assume they're getting jobseekers too because although they're both over 60, they're not at pension age yet.

Probably getting ESA rather than JobSeekers. ESA is for people too ill to work, PIP is a disability benefit.