Benefits mounting up in bank account

Lilacwine76

Can anyone help please?
both myself and husband receive dla/pip plus my husband also receives state pension and pension credit.
since Covid and being shielding for the last year our benefits are mounting up in our joint bank account as we haven’t been anywhere!

We also have a small amount of savings, we call it sad money, but funeral money to anyone else. With this combined takes us just over the 16k which I believe is the threshold?
So I need to know will the DWP take Covid into account for not being able to use the build up of benefits?

I’m sure we are not the only couple to be in this situation.
TIA 

pmlindyloo

Lilacwine76 said:

Can anyone help please?
both myself and husband receive dla/pip plus my husband also receives state pension and pension credit.
since Covid and being shielding for the last year our benefits are mounting up in our joint bank account as we haven’t been anywhere!

We also have a small amount of savings, we call it sad money, but funeral money to anyone else. With this combined takes us just over the 16k which I believe is the threshold?
So I need to know will the DWP take Covid into account for not being able to use the build up of benefits?

I’m sure we are not the only couple to be in this situation.
TIA 

First of all DLA/PIP is not affected by capital.

Secondly there is no absolute limit for Pension Credit.  You are 'allowed' £10000 between you.  Any amount over this is deducted from your Pension Credit at the rate of £1 for every £500 (or part of) over the £10K.

As you have savings specifically for your funerals I suggest that you consider buying a funeral plan each.  Such plans are disregarded for capital purposes (uk/government/uploads/system/uploads/attachment_data/file/932381/dmgch84.pdf
scroll down to 84398)

This should take you down to the £10K allowed.

You are also allowed to pay off debts and buy household goods so you may wish to consider either/both.

If you decide not to spend any of your savings then the amount they deduct from your Pension Credit will not be unmanageable.  Hopefully you will be able to afford a holiday in the UK in the near future and get back to 'normal' too.

Lilacwine76

Thank you for this info. Yes we have thought about paying for a funeral plan, that would be the best thing.
I was just thinking about the build up of benefits which is in a current account, obviously we use it for bills, food etc but nothing major. We were thinking of getting someone in to do the garden last year before lockdown but that didn’t materialise.
Surely they can’t penalise you for not being able to get work done or not being able to go and look for household appliances/ furniture without seeing it? 

poppy12345

Lilacwine76 said:

Surely they can’t penalise you for not being able to get work done or not being able to go and look for household appliances/ furniture without seeing it? 

Unfortunately, the rules still apply and savings of more than £10,000 will see a reduction as advised. All changes need to be reported.

Spoonie_Turtle

Lilacwine76 said:

Thank you for this info. Yes we have thought about paying for a funeral plan, that would be the best thing.
I was just thinking about the build up of benefits which is in a current account, obviously we use it for bills, food etc but nothing major. We were thinking of getting someone in to do the garden last year before lockdown but that didn’t materialise.
Surely they can’t penalise you for not being able to get work done or not being able to go and look for household appliances/ furniture without seeing it? 

At the rate of £1 for every £500 (or part of) over the £10K, that's, what, £13 deduction each week until you use some of the money?  Hardly a harsh penalty, I'd have thought.  You'll likely be able to use the money for things you intended soon, hopefully.

jimpwarsop

Its not a penalty. The government uses tax payers money (or debt) to help those in "need", clearly with £16k in the bank , and growing, you are not "in need".

The tax payer, via the government will always help you when you are in need, currently you aint.

As you say its unlikely you are the only ones in this situation.

Newly_retired

Could you see it as an opportunity to pay someone to provide the help you need eg gardening, cleaning,ironing, taxis to GP, take away meals.... if you do not do internet shopping yourselves, is there a relative who could be asked to order something for you: a new mattress, duvet covers, garden seat, for example? Just some ideas.

Lilacwine76

We do pay for the things we need, I shop groceries online, clothes and small household things. We are in need of electric beds, but without going and seeing if they are suitable it’s not something you would buy online. Our garden needs to be made more disabled friendly but with no one being able to get to the garden without first coming into our flat (no back entrance) that’s been impossible.

Newly_retired

We are a bit the same in that the only way to the garden is through the garage then through the extension. However this week we had a tree surgeon come to do some work. We just kept out of the way. My husband is buying himself a garden tool, a mini cultivator, to help him keep the garden tidy as he struggles. I have treated us to a new bedspread and duvet covers, being as we are not spending on anything other than food. 

williewonder

I've having the same problems. I'm on ESA/PIP and nearing the 16k threshold.

poppy12345

williewonder said:

I've having the same problems. I'm on ESA/PIP and nearing the 16k threshold.

PIP isn't means tested. If any part of your ESA is Contributions based then this isn't affected. If any part of your ESA is Income Related then you should already be having a reduction for savings over £6,000. Your situation is different to the OP because they are state pension age, which has different rules.