Advice needed for eligibility to benefits

Ben1960

My wife and I are both in our early 60s, our only income is my NHS pension which is around £1140 a month. We are both unable to work for medical reasons. We have modest savings (around £80k) for our retirement which means we are not entitled to social security benefits. With the cost of living rises, energy prices, council tax rises and all the other increases we have been hit hard. We've cut back on everything but still overspend.  Surely we must be entitled to some help?  The only way I can see is to blow our savings so we can get benefits which is madness. Once I get state pension in 2 years or so we should cover costs. All advice gratefully received.

swingaloo

Why would it be madness to use your savings? That is what they are for surely. You cant claim tax payers money and leave your own stashed away.

bluelad1927

If you are to receive state pension in two years and this will provide enough extra to live on then you are unlikely to 'blow' your 80k savings in those two years. It sounds like you need use between 10 and 20k to bridge the gap

elsien

If you have health issues, have you looked at non-means tested benefits such as PIP? You can apply if you are under state pension age.

Using your savings to live off is not blowing them unless you  deliberately spend more in order to try to get benefits which could be deliberate deprivation of assets.

Using  them to top up your income on day-to-day spending is what rainy day funds are for, to keep you going until your circumstances change. 

Alice_Holt

The only way I can see is to blow our savings so we can get benefits which is madness.

If you 'blow' your savings with the intention of claiming means tested benefits, the DWP may, rightly, decide that you have deliberately deprived yourself of capital and decline your claim.  


We are both unable to work for medical reasons. 

You may wish to check your eligibility for new style ESA (if you have paid NI contributions in the last 2 years), and PIP due to illness or disability.

LightFlare

80k in a 4% interest account will provide 3k a year interest - so 250 a month, plus a small draw down might help without "blowing the lot".

Might be an idea to post on the Savings and Investments forum to see if you can get some ideas on how to make that money work for you

How much shortfall per month do you have (or how much more do you need) ?

Spoonie_Turtle

On the savings front, eligibility for means-tested benefits is based on whether the government deems you have the means to live based on your circumstances.  Aside from your monthly income*, savings over £16,000 are deemed to be the means to live and the government expects people to use them for that.

*Unless you rent, then based on the information given so far the maximum UC you could hypothetically be eligible for if you had very low savings would be £1033.79 (couple allowance plus LCWRA), less than your pension income which would be deducted in full leaving 0 UC anyway. 
[Often people think benefits help is more generous than it really is and feel they're 'missing out' on a lot, so having the facts can help to understand the reality.]

Own_Worst_Enermy

If you are over 60 consider consulting a charity such as Age UK or Age Concern - they help with checking entitlement.  (re. attendance allowance)

From my past time spent with a charity and speaking to a food bank they want most to reach older people and will probably happily delivery to your door as well.

poppy12345

Own_Worst_Enermy said:

If you are over 60 consider consulting a charity such as Age UK or Age Concern - they help with checking entitlement.  (re. attendance allowance)

From my past time spent with a charity and speaking to a food bank they want most to reach older people and will probably happily delivery to your door as well.

It would not be AA as the OP did say "early 60's." AA is for those of state pension age and above. As advised it would be PIP or ADP if in Scotland. 

Rubyroobs

Own_Worst_Enermy said:

If you are over 60 consider consulting a charity such as Age UK or Age Concern - they help with checking entitlement.  (re. attendance allowance)

From my past time spent with a charity and speaking to a food bank they want most to reach older people and will probably happily delivery to your door as well.

I work for a charity for older people and no way would we be delivering to the door of someone with 80k in the bank, especially when it's people's charitable donations that enable us to do this. We deliver to those on the bones of their !!!!!!, waiting five weeks for their first Uc payment to come through.

Muttleythefrog

£80k is savings is quite a lot... and obviously rules out income related support. Contribution based support as advised might be possible but I get impression the last couple of years of working may not have been recent to give chance of qualification for New Style ESA (if restricted in ability to work) or New Style JSA. There is PIP to consider as a non means tested benefit for disabled. Getting NS ESA and/or PIP can be particularly difficult in several respects.

The benefit system as advised is not as generous or supportive as many may think who have not been exposed to it... for that end the government feared a backlash during the pandemic when many new claimants of the middle classes were unable to work and had to claim Universal Credit and so increased payments temporarily.

My advice... I would probably avoid NS ESA even if technically could qualify due to recent contributions through working as the investment of time and energy and possibly health to get it for a short period of time may not be worth it. PIP again difficult to get but could convey more enduring support/other help. If not already then get savings into a high interest savings account at least.... should be able to get currently 5% or more... that's another £4k per annum. 

Other than that money saving advice. Things like community larders...we get bags full of nice stuff and basic stuff for £2 a go... things like shopping for the discounted foods (based on hitting best before dates) at supermarkets as this can save a fortune and is something we massively take advantage of at our local Co-op which is otherwise expensive. There's lots you can do... your NHS pension income would more than cover our living and ongoing costs (no rent) and so I would imagine it goes a long way to covering yours. Not long until state pension kicks in. But I have to be honest.... in the current climate of escalating living costs as you mention... you are in probably a far better position (financially at least) than

If you feel you're still overspending month to month... perhaps another board might be suitable for ways to cut costs... often people are overpaying for stuff like telecoms/TV....or have costs they think normal which can be eradicated or reduced.