Savings ceiling when benefits are affected - when was the last time this was increased??

clarity_Jane

Hi,

I was reading something on here about the help to save ISA, and it occurred to me that the savings ceiling of £6k hasn't been increased in years - well I don't think it has anyway - I just wondered when was the last time this amount was increased, and if people thought it was a fair limit? Given that people are rightly nervous about the economy and want to have a bit put away, at what point does it become actually pointless to save?
I've got into the habit of regularly saving into a credit union and a help to buy ISA (purely because there's a bonus money element there too, I very much doubt I'd ever be able to buy a home!), I don't think I'm anywhere near the £6k level but if I were would I need to inform the DWP? as I work and receive UC. or are they in fact perfectly aware of every amount in my accounts?

Alice_Holt

In April 2006 when capital limits for means-tested benefits were increased to the current £6k / £16k, this was the first increase for most people since 1990.

So, 16 years ago. Over which time RPI totals c75%.



You would need to inform the DWP of savings in excess of £6k.

TELLIT01

Just to clarify, the savings ceiling is not £6k.  That is the point at which savings are taken into account.  The ceiling for most benefits is £16k at which point entitlement to Income Related (means tested) benefits cease.

xxxxxxxx

In France & Sweden the ceiling is 0.00   

Anything above 0.00 is deducted out of the benefit for that week.

The £6000 UK lower limit is probably one of if not the most generous in the world.

Spoonie_Turtle

xxxxxxxx said:

In France & Sweden the ceiling is 0.00   

Anything above 0.00 is deducted out of the benefit for that week.

The £6000 UK lower limit is probably one of if not the most generous in the world.

If you're makong international comparisons then international benefit rates are needed for fuller context.

xxxxxxxx

in Sweden 2022 it is £95 per week = equivalent of  Personal Allowance single person

In France 2022 it is £76 per week same equivalent of our personal allowance or standard allowance

cost of living is very high in Sweden. which expalins the extra £20 they get

EDIT: Sorry correction,

Sweden's Personal Allowance for 2022 for a single adult is £60 per week and as before mentioned the savings limit is 0.00  

£95 a week for a couple

HillStreetBlues

Alice_Holt said:

In April 2006 when capital limits for means-tested benefits were increased to the current £6k / £16k, this was the first increase for most people since 1990.

So, 16 years ago. Over which time RPI totals c75%.

Still more recent than the Christmas Bonus, that hasn't had a uplift in 45 years!

Murphybear

HillStreetBlues said:

Alice_Holt said:

In April 2006 when capital limits for means-tested benefits were increased to the current £6k / £16k, this was the first increase for most people since 1990.

So, 16 years ago. Over which time RPI totals c75%.

Still more recent than the Christmas Bonus, that hasn't had a uplift in 45 years!

HillStreetBlues said:

Alice_Holt said:

In April 2006 when capital limits for means-tested benefits were increased to the current £6k / £16k, this was the first increase for most people since 1990.

So, 16 years ago. Over which time RPI totals c75%.

Still more recent than the Christmas Bonus, that hasn't had a uplift in 45 years!

The Winter Fuel Allowance of £200/300 was introduced in 1996 and hasn’t been increased since even though the cost of fuel has escalated stratospherically.   The £10 Christmas Bonus was introduced in 1972 so its nearer 50 years.  It was higher than the state pension when it was introduced.  It should be at least the same as State Pension now.