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Benefits

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I have grown up Children on benefits who are struggling despite working hard  and I would like to help.  What I would like to understand if how much I can give without these impacting on their benefits. Regular cash and/or lump sum.  

Comments

  • Newcad
    Newcad Posts: 1,774 Forumite
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    Which benefits are we talking about?
    Some types of benefit could be affected (UC, HB, IR ESA, etc), others not (PIP, DLA, etc).
    Generally for Income Related benefits (UC, HB, IR ESA, etc):
    If you give them a lump sum such that their savings go above £6,000 then their benefit payments will be affected and payments reduced.
    If their savings go above £16,000 then their entitlment to Income Related benefits will end.
    Regular payments might also be a problem, depending how they are done they may be seen as 'Unearned Income', which would affect payments of Income Related benefits.
    You would need to tell us just what benefits they are claiming, and what savings/capital they already may have, for someone to give a more specific answer.

  • Brie
    Brie Posts: 14,648 Ambassador
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    It will depend if the benefits are income based or not. So if you give a large lump sum it will need to be reported as savings.  If it's regular smaller sums it may need to be reported as income. Either could reduce the amount of benefits being paid. You might get around this by paying certain bills like their utilities but they would need to say, when asked, that they don't pay these.
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  • sheramber
    sheramber Posts: 22,430 Forumite
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    You  could pay some bills direct for them. That way they do not get the actual money.
  • Spoonie_Turtle
    Spoonie_Turtle Posts: 10,298 Forumite
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    For UC, regular gifts of money from a family member would not be seen as income.  They would count towards capital/savings as mentioned above.  (I can't say for any other income-related benefits though.)
  • Alice_Holt
    Alice_Holt Posts: 6,094 Forumite
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  • Muttleythefrog
    Muttleythefrog Posts: 20,406 Forumite
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    edited 22 March 2024 at 6:02PM
    As above.... we need more information about the benefits they receive otherwise you could get extremely poor/wrong advice... I appreciate you're a 3rd party and getting the information may be difficult. But different benefits can be differently affected, if at all, by what you propose. We probably also would need to know their housing situation and level of savings they hold.

    If you cannot give good information and they're not able to shed light of their own on how they'd be affected... there may be ways to help that would not affect any benefits.... I'm thinking like helping them pay bills or debts.
    "Do not attribute to conspiracy what can adequately be explained by incompetence" - rogerblack
  • M25
    M25 Posts: 363 Forumite
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    Give them cash.
  • Bigwheels1111
    Bigwheels1111 Posts: 3,036 Forumite
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    Mr cash is king 😜
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