How much savings you are allowed before it affects the benefits

mikey_bach

SD-253 wrote: »

. Are you expert or do you just think you are?


The above is the definition of female chauvinist pig

If you have 10k of debt on a credit card and 10k of savings in an account then 10k will be classed as capital on your claim.
If you paid that credit card of then a SDM would have to make a deprivation of capital decision if you paid that credit card off in one go.....

tinkledom

Morglin wrote: »

If your savings are over the threshold, then you will lose some or all of your MT benefits.

No, your debts do not change this scenario - it's only about savings.

Why is everyone suddenly asking this?

Lin

It is quite easy to understand. Say someone spends £1500 in a month on living expenses. Instead of using cash (wages) they put it all on their 0% credit card. The £1500 of cash then goes into an ISA or other savings type account. The 2% or so that the account pays out is 2% more that what the credit card charge is (0%). That way you are making money out of being in debt.


As you say the DWP will only consider the savings and won't take into account the contra debt figure which to be honest is stupid as both are linked.


Mind you it's as stupid as when the DWP would treat any savings that are saved from a means tested benefit. For example if your bank account showed that you managed to live on all of the other non means tested income and saw that the ESA, JSA or PC being paid straight into a savings account, those savings would also be used to reduce any future means tested benefit.


Just going though my late father's affairs (joint executor) and from 65 until he died last December aged 88 he never touched a penny of his old age pension (£144,716)!!!. Unfortunately the DWP got wind of this and have now demanded that the estate repay all of the Pension Credit that he received. Seems silly really when you end up being penalised for being thrifty instead of spending everything that comes in except up to £10,000 in savings.

Ames

Is this the Andy highlights reel thread?

SD-253

jacques_chirac wrote: »

You do a good job of making sure no one offers you help again!

Yet again someone offering no help at all. Why bother people if you have nothing worth saying?

SD-253

tinkledom wrote: »

It is quite easy to understand. Say someone spends £1500 in a month on living expenses. Instead of using cash (wages) they put it all on their 0% credit card. The £1500 of cash then goes into an ISA or other savings type account. The 2% or so that the account pays out is 2% more that what the credit card charge is (0%). That way you are making money out of being in Just going though my late father's affairs (joint executor) and from 65 until he died last December aged 88 he never touched a penny of his old age pension (£144,716)!!!. Unfortunately the DWP got wind of this and have now demanded that the est.

Thank you tinkledom someone with something useful to say. A non troll on this thread.

Poppie68

SD-253 wrote: »

Thank you tinkledom someone with something useful to say. A non troll on this thread.

WOW your a charmer:rotfl:you've also just thanked the ONLY troll thats commented on this thread.

Hank_Marvin

Do pensioners who are on Guaranteed pension credit & Savings credit have the same 6K-16K applied to them??

tinkledom

SD-253 wrote: »

"Quote:
Originally Posted by damo73 View Post
hi,
take this as gospel as i work in DWP for Income Support (IS). you have to declare all capital ie savings, bank, building society and post office accounts when u make a claim. its fruad if u don't.
you can have £16000 pounds in savings, but anything over £6000 is taken into account at the ratio of £1 off your personal allowance (PA) for every £250 over the £6000. IS will also pay the mortage interest but there is a qualifing period.
hope this helps

Damo
IS Decision Marker"


Anyone know, preferably an expert if my debts (0% credit cards) can be used against the £6000 limit on savings. I use 0% credit cards and put the money I spend in a savings account. So debt is always equal to or greater than my savings. Obviously I would prefer not to lose any benefits IE £1 of benefit payments for every £250 over the £6000 limit. I don't get housing benefit.

Not all mortgages qualify either. The criteria is very strict as I have found to my cost. They will not consider private mortgages or loans from a bank even.

tinkledom

mikey_bach wrote: »

If you have 10k of debt on a credit card and 10k of savings in an account then 10k will be classed as capital on your claim.
If you paid that credit card of then a SDM would have to make a deprivation of capital decision if you paid that credit card off in one go.....

As I have said - another stupid DWP rule.


What would the difference have been if they had used the income to spend on living costs and had no credit card debt - same difference - oh I know there are savings, and you cannot now repay the debt with those savings.


This clearly shows the fact that having savings is a bad decision when claiming a means tested benefit. Best have savings that do not exceed £6000 and blow the rest on booze & fags.

tinkledom

Hank_Marvin wrote: »

Do pensioners who are on Guaranteed pension credit & Savings credit have the same 6K-16K applied to them??

No for some weird reason - another stupid DWP rule - they can have £10,000 instead of the £6000 AND there is no upper limit instead of the £16000 for under 62


Why I don't know - some idiot in Whitehall must have had a reason as to why it should go from £6000 to £10000 because of a birthday. Maybe he felt sorry for his widowed mother.