Council Tax Benefit - Savings over the threashold

didabuf

Just wondered if anyone has any experience. We recieve CT Benefit, we are also massive savers and spend out money very carefully. We have saved really hard for an extension on our house (we dont smoke or drink and we dont have holidays, we dont go out much, we just save) but now this has taken us over the £16k thresehold for the benefit and they have asked for a yearly look at our bank account and my wages. Does anyone know how this could affect us, will i have to pay back any benefit they have paid in the last year or will it just be the last few months as we have been over it.
Thanks in advance

poppy12345

didabuf said:

Just wondered if anyone has any experience. We recieve CT Benefit, we are also massive savers and spend out money very carefully. We have saved really hard for an extension on our house (we dont smoke or drink and we dont have holidays, we dont go out much, we just save) but now this has taken us over the £16k thresehold for the benefit and they have asked for a yearly look at our bank account and my wages. Does anyone know how this could affect us, will i have to pay back any benefit they have paid in the last year or will it just be the last few months as we have been over it.
Thanks in advance

It will just be from when your savings reached £16,000 because you should have reported the changes.

TELLIT01

It is vital that changes which might affect Income Related benefits, and that's not just CT benefits, are reported.  Failing to do so can result in fines on top of having to repay any over payment.

KatrinaWaves

Are you sure the limit is 16k for your CT benefit? That’s very high, it’s normally 6k when it starts to taper, or 10k for pensioners.

Each could council does set its own rules for qualification so it may be that they don’t taper it before 16k but that truly does seem a very high threshold... I’d definitely be checking as you may have a large overpayment. 

calcotti

I am sure all councils will taper CTR with savings over £6000. For some councils the threshold above which no CTR for working age claimants is lower than £16000. No CTR may be payable with savings over £6000. You need to check the rules for your own local authority.

didabuf

Thanks for your concern guys. I have taken this from my local council's website:

You may get council tax support if you are liable to pay council tax. 

You will not be eligible if: 

• you have over £16,000  in savings unless you receive the guarantee credit element of pension credit
• you live in the home of a close relative
• you are a full-time student (unless you are disabled or have children
• you are an asylum seeker or sponsored to be in the UK
• you are residing in the UK as an European Economic Area jobseeker. 

calcotti

didabuf said:

Thanks for your concern guys. I have taken this from my local council's website:

You may get council tax support if you are liable to pay council tax. 

You will not be eligible if: 

• you have over £16,000  in savings unless you receive the guarantee credit element of pension credit
• you live in the home of a close relative
• you are a full-time student (unless you are disabled or have children
• you are an asylum seeker or sponsored to be in the UK
• you are residing in the UK as an European Economic Area jobseeker. 

That confirms that your local authority has retained the cut off threshold of £16,000. Although it does not say so it is almost certain that savings over £6,000 will reduce your entitlement. That was the default before local authorities were allowed to amend the rules and schemes have generally become more restrictive since then, not less. Your local authority website should haves link to the full CTR scheme rules. It will be a very long complex document so you may prefer just to try and speak to them.

KatrinaWaves

Yes please do call. Eligibility isn’t static, they are saying you don’t get any help over that amount. It is highly likely to get tapered. 

How much savings did you have at the start of your claim, and how long ago was that? They are likely still using your old savings figures. Sorry to be the bearer of bad news but it is likely you will have a decent repayment to make, not just from the date you went over £16k... 

sammyjammy

Have you ever declared any savings to them?

didabuf

sammyjammy said:

Have you ever declared any savings to them?

yes, always. we were due to have the extension built in april and due to covid it hasnt happened yet hence us now being over the limit.