dwp overpayment

debs.c

hi, i was re-paid a underpayment from dwp, i receive ESA , DLA and housing benefit. it was quite a lot. the letter states that the overpayment will not be treated by them as income, unless i claim a new benefit. mmmmmmmmm, so If i took out a high intrerest savings account would the interest i made be taken into account as savings please? im not sure, does anyone know please? thanks

Comms69

debs.c wrote: »

hi, i was re-paid a underpayment from dwp, i receive ESA , DLA and housing benefit. it was quite a lot. the letter states that the overpayment will not be treated by them as income, unless i claim a new benefit. mmmmmmmmm, so If i took out a high intrerest savings account would the interest i made be taken into account as savings please? im not sure, does anyone know please? thanks

1: do you mean income, because yes it would count as income
2: if you can find a high interest savings account you're doing better than 99.9999% of the population.

debs.c

yeah , looking at it logically, anything 'income or money' , or amounts bigger than the overpayment i had,would be gained income even if its interest i guess.!! maybe its not such a good idea then! anyone else out there have an overpayment they have invested while on benefits, its a difficult one to get around and i dont wanna waste the money! thanks

calcotti

Interest is not treated as income, it is an increase in capital. It will only affect your benefits if your total capital is over £6000 (disregarding the repayment itself).

debs.c

right ok, so am i right in thinking, and thats if i could get one, i could open a savings account with £6000 of the repayment and the interest gained would be disregarded by dwp?

calcotti

You can put all of the money in a savings account. If you earn a £100 of interest you now have £100 capital. Unless this now takes your total capital to over £6000 (ignoring the repayment amount) it has no impact on your ESA or HB. Unless you already had capital before getting this repayment it isn't going to be an issue at current interest rates.

DLA is not means tested at all.

debs.c

wow can I! I think i got it now, gonna start researching the right savings accounts etc. not that I like the bank having all my cash!! love these forums, thanks

Sheepski

Usually they will disregard the overpayment for 12 months. After that anything remaining will be added to any capital you already have (and any interest earned in the next year) and will count towards the £6000 lower cap.

A few years ago I received an overpayment and while I saved some, and enjoyed a little of it, the majority went to buying things that I hadn't been able to afford previously. So I got a car which helped me find work, I got a new couch and dining table and a few other bits.

calcotti

Sheepski wrote: »

Usually they will disregard the overpayment for 12 months. After that anything remaining will be added to any capital you already have (and any interest earned in the next year) and will count towards the £6000 lower cap.

Sometimes the disregard is 12 months, sometimes it is for the lifetime of the award. OP says in opening post that they have been told it is for the lifetime of the award.

debs.c

ok thanks, yes im gonna enjoy some

debs.c

the letter doesnt state a 12 month disregard but im aware of it now, thanx guys