Capital Limit for Income Related Benefits

BACKTOBACK

Please could someone clarify the difference between income and capital in the following situation?
If you were just below the £6k limit in your accounts as capital and claiming IR benefits but then received a 4 weekly payment that took your balance over the £6k limit would you need to declare that immediately?
Does the income become capital immediately or on receipt of the following payment of the same benefit?
I am aware of deprivation of capital rules but if the income does not become capital for a further four weeks are there restrictions on how this income can be spent before it becomes capital?

Spoonie_Turtle

BACKTOBACK said:

Please could someone clarify the difference between income and capital in the following situation?
If you were just below the £6k limit in your accounts as capital and claiming IR benefits but then received a 4 weekly payment that took your balance over the £6k limit would you need to declare that immediately?
Does the income become capital immediately or on receipt of the following payment of the same benefit?
I am aware of deprivation of capital rules but if the income does not become capital for a further four weeks are there restrictions on how this income can be spent before it becomes capital?

No.  None at all, as far as the means-tested benefit is concerned.

The definition of when income becomes capital depends on which means-tested benefit(s) you're referring to.

Alice_Holt

Generally any unspent benefit income is included as capital at the end of the assessment / payment period.


https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1163111/admh1.pdf

H1050