Help with notional capital/income when claiming benefits

heidihider

Hello,
I currently claim ESA and Housing Benefit and am due to receive the proceeds from selling my current home very soon. I will be using the money to pay off my debts and to purchase a 30 percent share in a new shared ownership house for me to live in. I am aware of the rules of only having £6000 in savings etc when claiming, but my question is this...If I purchase premium bonds for my 5 year old grandaughter that will be in her name for her to benefit from financially, with any leftover capital, will this be seen as me giving away capital in order to still claim full benefits??
Any help/advice is greatly appreciated 

calcotti

Yes, that will be deprivation of capital and you will be treated as still having it.

The savings limit is not £6000. Above £6000 your benefit entitlement will reduce but will not end. You are only excluded from working age means tested benefits if your capital exceeds £16000. 

poppy12345

heidihider said:

Hello,
 I will be using the money to pay off my debts

This can also been seen as deprivation of capital, unless the debts are immediately payable because you're receiving letters for court action.

TELLIT01

The proceeds from the sale of the home are disregarded for 6 months if it is intended to use the money to purchase a new property.  That is the situation the OP is in.  It will only be any capital remaining after that purchase which is considered for benefit purposes.

poppy12345

TELLIT01 said:

The proceeds from the sale of the home are disregarded for 6 months if it is intended to use the money to purchase a new property.  That is the situation the OP is in.  It will only be any capital remaining after that purchase which is considered for benefit purposes.

The OP did clearly state that the money would be used to purchased a share of another property and to pay of debt. They also want to buy bonds for the grandchid. This is why advice was given regarding deprivation of capital.