on benefits with 13000 in the bank is it safe to do this

poppy12345

Theone44 wrote: »

his esa and housing benefit are means tested but its been over a month now.So what is the worst that can happen.

The changes need to be reported and he will have an overpayment that will need to be repaid back.

Theone44

Ok can he go to prison and will his benefits get stopped.

calcotti

The money makes no difference to PIP because PIP is not means tested. £13,000 will reduce entitlement to ESA and HB but will not end it. In the case of ESA there would be a reduction of £28/week.
The money should be declared, future benefit payments will be recalculated and any overpayment that has already occurred will need to be paid back

Theone44

Ok thanks I see you have to declare savings within a month it's been over a month now.Hes just worried about going prison for this.

TELLIT01

No he will not go to prison for this. At this stage it is a very minor issue with a slight delay in reporting the money. Deprivation of Capital basically means that even if they hand the money back to the mother they could be treated as still having it, and their benefit reduced accordingly.
Assuming their total savings are still below £16,000 their benefit won't be stopped but reduced by approximately £28 per week. This is because benefit is reduce by £1 for every £250 in savings over £6000.
Hope this helps.

Theone44

Ok thanks for that I thought you was only allowed 6000 in savings and still get benefits.

calcotti

Theone44 wrote: »

Ok thanks for that I thought you was only allowed 6000 in savings and still get benefits.

No, the limit is £16,000. Savings of £6,000 are ignored completely - that is probably what you are thinking of. Between £6,000and £16,000 means tested benefits can still be claimed but the amount paid is reduced.

[Deleted User]

If he genuinely has problems understanding benefits and how to handle money, he might need help with this from a trustworthy friend or relative.., getting an appointee.

How come it seemed ok at the time to receive this money and then buy premium bonds with it but now they are scared of going to prison? It sounds a little odd. They may need further support generally if a mental illness exists. It sounds like its not being managed as well as it could be.

sammyjammy

How bizarre that the mother would just hand this money over to a mentally ill person who, in your own words OP, doesn't know what he is doing .....

Theone44

It's been 4 months now since this happened he doesn't know what to do.He doesn't have anyone that could be an appointee.