Cost of living payments: are they considered capital/savings, once paid into benefits account

Articulate25

HI, i was under the impression that all the COL payments that were paid to those on benefits did not become savings or capital, eg, did not count towards the 6000 taper, is this correct, it should be really as unsolicited, i am aware back payments are disregarded for a year.

NedS

Correct, all DWP Cost of Living payments are disregarded as capital indefinitely.

I'm sure someone else will be able to post a lonk to the guidance which states this.

Articulate25

Tx, really stressful this, on my condition FB pages, they are saying differently, it really isn't clear as with other payments, some of us have cognitive issues

Spoonie_Turtle

Eveey single government page for the payments explicitly says they will not affect entitlement to benefits, i.e. they will be disregarded as capital.  It is also in the legislation but I don't have the spoons to find that tonight.

Auti

Thank you for this also. So I would include the COL payment letters in with my UC application (still not had the courage to managed migrate yet) to reduce my capital/savings amount? It is hard to know when to apply as my money ‘saved’ changes with what bill has just come out and what money has just gone in - I have various and all have different dates eg PIP, CBESA, CB and no idea how they are counted as capital — is it when they enter your account? Thank you

huckster

Within legislation for COL, it included reference to social security act saying that they are not considered when calculating award for income based benefit.  But as far as I know accumulation of monies from benefits can affect capital held after a period of time.  Backdated benefit awards are only disregarded as capital for 12 months. 

Section 8 of the link below may be what NedS is referring to, but I have not seen COL added to list of capital disregards.

https://www.legislation.gov.uk/ukpga/2022/38/crossheading/administration-etc/enacted

There have been Court cases for benefit fraud relating to capital not being declared when the capital is made up of a large percentage of benefit payments not spent.

poppy12345

Articulate25 said:

Tx, really stressful this, on my condition FB pages, they are saying differently,

I remember joining one of those quite a few years ago. The advice coming from some people on there was quite shocking to say the least. I left within just a few days. I would take what you read on any of the groups with a huge pinch of salt.

poppy12345

Auti said:

Thank you for this also. So I would include the COL payment letters in with my UC application (still not had the courage to managed migrate yet) to reduce my capital/savings amount? It is hard to know when to apply as my money ‘saved’ changes with what bill has just come out and what money has just gone in - I have various and all have different dates eg PIP, CBESA, CB and no idea how they are counted as capital — is it when they enter your account? Thank you

Money from your benefits isn't classed as capital until the end of the period in which they are paid for. After that time they are classed as capital.

NedS

My googling skills found two documents detailing that Cost of Living payments are disregarded indefinitely:

https://data.parliament.uk/DepositedPapers/Files/DEP2023-0365/025_Capital_disregards_V22-0.pdf

https://data.parliament.uk/DepositedPapers/Files/DEP2023-0365/046_Cost_of_Living_Payment_V3-0.pdf

huckster

@NedS

Looks like DWP registered the COL disregard info with Parliamentary library, but have not updated the Gov.uk Advice for Decision Makers website.

I suspect very few people will have savings over £6000 including COL payments.

Articulate25

I think when it comes to disabled and sick there will be more than you think many are much to ill to do anything, live frugally, etc.