When do benefits / income become savings?

[Nystagmite]

I've had to save some of my benefits due to needing some expensive equipment. When would this money become savings and therefore, have to be declared as savings?

[honeybee13]

Hello there.

 

I haven't checked the figure you need to declare as savings but think it might be on the DWP website. I thought it was a reasonable amount but couldn't quote it to you.

 

Have you checked the website? Otherwise I could, if you like.

 

My best, HB

[leemack]

It becomes savings as soon as you save it - so you need to inform them if you are over the savings limit.

[honeybee13]

Hi leemack. Would you mind reminding us what the savings limit is for benefits please? I don't know.

 

My best, HB

[Nystagmite]

The lower limit is £6k and the upper limit is £16k. For each £250 over £6k, £1 is deducted from benefits.

 

Thank you.

[DaveatBristol]

Hi it depends what benefit you are on - £6000 - £16000 for means tested income support maybe

 

If its your own savings from money given to you from benefits - It seems a bit unfair to receive a cut in benefits for going over the threshold if you've simply been sensible or prudent concerning your money !

 

As a single parent of a disabled child I've managed to save up over the years and have never really been sure as to where the thresholds are set - my child receives DLA but into my account so is this money counted as my money or my childs ? and if this DLA money is saved up over the years does this deny me benefits once i reach the thresholds ?

[Nystagmite]

If its your own savings from money given to you from benefits - It seems a bit unfair to receive a cut in benefits for going over the threshold if you've simply been sensible or prudent concerning your money !

 

This is why I asked - because it makes no sense to me. I sometimes don't have that many costs, and sometimes have more than what my benefits are.

 

Regarding your last paragraph - the problem you have is proving that the money is your childs - especially as it's in your own bank account.

[boloney]

my child receives DLA but into my account so is this money counted as my money or my childs ? and if this DLA money is saved up over the years does this deny me benefits once i reach the thresholds ?

 

did you child claim DLA, or you did claim it on your child behalf?

if you were claimant thats your money, you can use them to buy thinks for child, but nobody i checking on you.

so I would say thats still yours income.

the same apply to child benefit, parents claim, parent get it, thats up to parents where the money will go, so it is parents income.

if you want child keep the money make transfer to his/her bank account, if child does`t have one you can always pay them on his/her trust account.

[speedfreek]

Good topic sorry I'm rather squiffed

 

It depends on what benefit you're on or claiming!

 

Income based then the £6000-£16000 rule applied but...

 

Some benefits have disregards! This is where the payment is not counted towards an income related benefit for X months

 

DLA 6 months IB/IS sure they do as well but ESA no! I'm sure LHA/HB has one too

 

It's all rather confusing tbf Nor is it advertised.

 

One question does my vintage bourbon collection count as savings?

[DaveatBristol]

I have been getting DLA on behalf of my daughter for 6 years ( thats 40 something quid a week ) amounts to around £12000 - I havn't saved that amount but my account has on a few occasions reached £6000 plus - All the incoming payments on my bank statements are from benefits e.g. income support/carers allowance/Child benefit/DLA.

 

So strictly speaking when the amount goes above £6000 ( every £250 is treated as £1 income )

 

As a lone parent I am able to earn £20 a week without it affecting my benefits so does the income above count towards the £20 ? A child is allowed £2500 in savings - surely it cannot be the case that none of the DLA is treated as the childs money even though the disability payments are in place because the child is disabled ?

 

It seems an unfair system if they can give you money in one hand because your entitled to it then take it away when it suits them.

 

I could understand if you had a windfall / insurance payout / inheritance etc that boosted your savings above the threshold but not when its the actual money that they have paid you themselves.

[leemack]

I've dealt with a number of overpayment cases caused by someone saving their benefits over the capital limits and thinking it didn't count - one case was over £30,000 overpayment. Anything you have in an account, invested or as cash, counts as capital, even if you have only just received it. (unless a specific disregard applies to it) Income disregards do not apply to benefits, and also do not apply to capital.

 

The only benefits payments that have a disregard, are arrears of many (not all) benefits, which I think are disregarded for 52 weeks, and social fund payments that are disregarded indefinately.