Housing Benefit review and gifts

edited 29 September at 6:51PM in Benefits & tax credits
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sourpuss2021sourpuss2021 Forumite
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edited 29 September at 6:51PM in Benefits & tax credits
I understand that gifts from family are disregarded for the purposes of Housing Benefit: https://www.entitledto.co.uk/help/benefits-charity

Is that the case even if over the course of a year the total of the regular + irregular gifted money adds up to more than £16k? 

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  • poppy12345poppy12345 Forumite
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    £16,000 + in total is a lot to receive especially as a regular gift. As you said there's a regular payment cycle with a standing order set up then they may question where the money has come from. You will of course need to send the bank statements like they asked for and then wait for their decision. Yes, your HB could be suspended.
  • edited 25 September at 7:25AM
    sourpuss2021sourpuss2021 Forumite
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    edited 25 September at 7:25AM
    [Edited as question answered, thanks]

  • nayathepsychicnayathepsychic Forumite
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    If your council is anything like mine you will have to account for every penny. I had to prove that a series of small payments into my account from some eBay sales wasn't a regular income. The amounts ranged between 4 and 9 pounds. 
    *not actually psychic 
  • GhibliFanGhibliFan Forumite
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    The point is that OP's payments are gifts.  If gifts are disregarded then they shouldn't affect benefit entitlement.  According to the "Entitled to" article that OP linked to, these payments should be declared as 'savings', not income.  And savings below £10k/£16k don't need to be declared.  

    If Entitled to are correct, OP should be ok.  Are they correct?


  • edited 22 September at 4:49PM
    poppy12345poppy12345 Forumite
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    edited 22 September at 4:49PM
    GhibliFan said:
    savings below £10k/£16k don't need to be declared. 
    That's not correct. Savings of under £6k don't need to be declared because they are ignored. (working age people) For every £250 or part there of over £6k there's a £1/week deduction in benefits. Over £16k and entitlement to all means tested benefits end.
    Yes, gifts are ignored but regular gifts of large amounts of money over a short period of time and questions could be asked.

  • edited 25 September at 7:25AM
    sourpuss2021sourpuss2021 Forumite
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    edited 25 September at 7:25AM
    [Edited as question answered, thanks]



  • edited 25 September at 7:25AM
    sourpuss2021sourpuss2021 Forumite
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    edited 25 September at 7:25AM
    [Edited as question answered, thanks]



  • edited 25 September at 7:26AM
    sourpuss2021sourpuss2021 Forumite
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    edited 25 September at 7:26AM
    [Edited as question answered, thanks]



  • poppy12345poppy12345 Forumite
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    You can submit your own letter with the bank statements explaining that the credits are gifted from your parents and as such are totally disregarded as income. They are included as capital though. 

    I am staggered that you have spent £10k refurbishing a rented property. The kind of money your parents are sending you could go towards covering a small deposit on flat and mortgage repayments depending where in the country you are.

    Just to add, I've remembered reading that money from family which is a loan will be counted as capital.  However if the money is simply gifted, then it is not. 

    Presuming that it has been spent, and the amount is under £6k, then it is invisible for HB purposes.

    Though now I'm confusing myself with the loan/gift distinction. Because if my parents had loaned me £17k, and I had spent it and owed them this sum, I don't see how that could be treated as capital either. 





    Gifts are not income, they are capital. As i advised because the amounts were regular amounts over a period of time they may question why you didn't receive it as a lump sum. You said the total amount you've received is more than £16,000, which is a huge amount of money to spend on a house you're renting.
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