Savings Limits and Benefits

cheap_charlie

I was wondering when the savings limits for benefit claimants were last increased?

It's been £6000 with a top limit of £16000 for as long as I can remember.

peteuk

And will remain so probably for….who knows.  Why do you need when it was last changed?

TELLIT01

Those figures were in place when I joined DWP in the mid 2000's and are unlikely to be increased any time soon.

Unlike benefit rates, the savings limits do not increase in line with inflation.

HillStreetBlues

For working age 1st April 2006 for lower limit (£6k) , the higher limit well before that. For pension age (£10k) November 2009.
EDIT as pointed out below it was the same time.

cheap_charlie

peteuk said:

And will remain so probably for….who knows.  Why do you need when it was last changed?

Was curious.  I think it needs reviewed to be honest - but don't expect it to be.

Robbie64

April 2006 for both the lower (£3,000 to £6,000) and upper (£8,000 to £16,000) limits.

HillStreetBlues

cheap_charlie said:

peteuk said:

And will remain so probably for….who knows.  Why do you need when it was last changed?

Was curious.  I think it needs reviewed to be honest - but don't expect it to be.

As long as it doesn't follow the old National Assistance rules where you were expected to use all savings & sell unneeded personal possessions .

cheap_charlie

HillStreetBlues said:

cheap_charlie said:

peteuk said:

And will remain so probably for….who knows.  Why do you need when it was last changed?

Was curious.  I think it needs reviewed to be honest - but don't expect it to be.

As long as it doesn't follow the old National Assistance rules where you were expected to use all savings & sell unneeded personal possessions .

Well definitely not - that's inhumane.  Not reviewing them in 18 years could deter people from saving, particularly those with lifelong disabilities...£6k in 2006 is £10,000 now for example.

Grumpy_chap

cheap_charlie said:

Not reviewing them in 18 years could deter people from saving, particularly those with lifelong disabilities...£6k in 2006 is £10,000 now for example.

I suppose, as fiscal drag is being used as a tool in the tax raising arena, it is at least consistent that the same fiscal drag is used as a tool in the eligibility for benefits.  I am not saying it is correct, or incorrect, only that it is consistent treatment.

If means-tested benefits are there to support those most in need, some would say that would not include for extra to allow the claimant to save. 

HillStreetBlues

cheap_charlie said:

Well definitely not - that's inhumane.  Not reviewing them in 18 years could deter people from saving, particularly those with lifelong disabilities...£6k in 2006 is £10,000 now for example.

It does deter people from saving and the system is far from perfect.
In the current climate the limits will not be increased, the concern for many will be keeping their current benefits, as this current Government haven't ruled out what the previous Government was looking at (loss of LCWRA payment,  PIP vouchers instead of cash).

Spoonie_Turtle

cheap_charlie said:

HillStreetBlues said:

cheap_charlie said:

peteuk said:

And will remain so probably for….who knows.  Why do you need when it was last changed?

Was curious.  I think it needs reviewed to be honest - but don't expect it to be.

As long as it doesn't follow the old National Assistance rules where you were expected to use all savings & sell unneeded personal possessions .

Well definitely not - that's inhumane.  

In the USA certain means-tested benefits only allow $2,000 in savings/assets (and they do count anything above what they deem as required for living - e.g. only disregard one car if it's used for transport but you're expected to sell the other, even if you're a family with kids needing two cars.  Likewise for assets that aren't household goods or personal effects).

*Not a political discussion, just a related fact I found interesting*