Savings and Benefits question

sweetbutternut · 21 April 2017 at 12:52PM

Wondering if someone can help.

1. Will we lose means tested benefits if there is a payout from my husband's serious illness / critical illness policy?

2. Does a Junior ISA count as savings in relation to means-tested benefits?

3. Does an untouched private pension count as savings in relation to means-tested benefits?

Thanks

pmlindyloo · 21 April 2017 at 1:04PM

Can you please tell us which benefits you are referring to?

sweetbutternut · 21 April 2017 at 1:18PM

Housing benefit, child tax credits, working tax credits.

xylophone · 21 April 2017 at 2:24PM

Does a Junior ISA count as savings in relation to means-tested benefits?

No - a JISA belongs to the child absolutely and under all except very sad circumstances, can only be accessed by the child himself when he turns 18.

That said, if a person in receipt of means tested benefits were suddenly to start contributing to a JISA and particularly in large amounts, a Decision Maker might become involved?

3. Does an untouched private pension count as savings in relation to means-tested benefits?

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/417473/pension-flexibilities-dwp-benefits.pdf

1. Will we lose means tested benefits if there is a payout from my husband's serious illness / critical illness policy?

Presumably once you received such a payment the money would be regarded as capital?

If this were the case, you would need to consider how capital affects means tested benefits?

sweetbutternut · 21 April 2017 at 3:22PM

Thanks for the info and links xylophone. I read the link you included, but I am still very confused!

My husband is 55 and unfortunately, only has a few hundred pounds in his private pension. Sad, but true. I was just wondering if he could continue saving into his private pension without touching the pension pot.

Does an untouched pension pot count as "savings" even if the money is not accessed?

marliepanda · 21 April 2017 at 3:50PM

sweetbutternut wrote: »

Thanks for the info and links xylophone. I read the link you included, but I am still very confused!

My husband is 55 and unfortunately, only has a few hundred pounds in his private pension. Sad, but true. I was just wondering if he could continue saving into his private pension without touching the pension pot.

Does an untouched pension pot count as "savings" even if the money is not accessed?

I believe if you choose to not take it, it's counted, as you've chosen to 'deprived yourself of that income so they class it as you still having it. It's only Ones that you can't access that are discounted

sweetbutternut · 21 April 2017 at 4:17PM

Thanks marliepanda. That makes sense....

Can you or anyone else confirm what xylophone said, that Junior Isas are exempt from what is classed as "savings"?

Housing_Benefit_Officer · 21 April 2017 at 5:32PM

Junior ISAs are the childs capital and disregarded for benefits purposes.

xylophone · 21 April 2017 at 9:57PM

My husband is 55 and unfortunately, only has a few hundred pounds in his private pension. Sad, but true. I was just wondering if he could continue saving into his private pension without touching the pension pot.

In your first post you were asking about whether the untouched pension would be taken into account as savings if your husband were in receipt of means tested benefits.

The link says

If you (or your partner) are under the qualifying age
for Pension Credit

If you (or your partner) are under the qualifying age for Pension Credit, and you do not take any money from your pension pot, then it will not be taken into account when your benefit entitlement is worked out.

You are now asking whether your partner can continue to contribute to a pension while on means tested benefits.

He can do but with regard to tax relief, if he has no relevant earnings the amount he can contribute will be limited to £2880 (net) per annum.

http://www.rossmartin.co.uk/private-client-a-estate-planning/income-losses-claims-reliefs/1034-relevant-earnings-for-pensions-purposes

[Deleted User] · 22 April 2017 at 10:14PM

sweetbutternut wrote: »

Thanks for the info and links xylophone. I read the link you included, but I am still very confused!

My husband is 55 and unfortunately, only has a few hundred pounds in his private pension. Sad, but true. I was just wondering if he could continue saving into his private pension without touching the pension pot.

Does an untouched pension pot count as "savings" even if the money is not accessed?

An untouched private pension DOES NOT COUNT AS SAVINGS

Savings and Benefits question

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