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savings and deprivation of capital
- Bauhaus
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1 year 2 months ago #282917 by Bauhaus
savings and deprivation of capital was created by Bauhaus
With a claiment claiming UC and Housing Beniftis with savings between 6000 to under 16000, what is considered an acceptable use of your savings rather than a deprivation of notional capital?
Can you use saving to; pay bills, buy a new TV when the old one is broken, replace old furniture etc?
I have also read there is an assumed reduction in savings on an annual level
Can you use saving to; pay bills, buy a new TV when the old one is broken, replace old furniture etc?
I have also read there is an assumed reduction in savings on an annual level
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- Chris
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1 year 2 months ago #282925 by Chris
Nothing on this board constitutes legal advice - always consult a professional about specific problems
Replied by Chris on topic savings and deprivation of capital
Hi Bauhaus,
When the DWP request your bank statements to check your capital, they look for things that aren't regular to what you would usually do. For example, when I had mine done last month (as I have between 6k-16k), they were looking for things like large sums of money being withdrawn over a long period of time, but bills are fine. I also made purchases of a new bed matress (as I suffer from chronic pain), a new fridge freezer when mine broke for example. You can always leave a message in your journal asking for what is acceptable, and they'll send the message to the relevant personel. You can also find a list online by googling. Always make sure you keep the receipts, just in case they ask. When I had mine just last month, they wanted to see absolutely everything, my savings account, bank account, help 2 save etc etc.
When the DWP request your bank statements to check your capital, they look for things that aren't regular to what you would usually do. For example, when I had mine done last month (as I have between 6k-16k), they were looking for things like large sums of money being withdrawn over a long period of time, but bills are fine. I also made purchases of a new bed matress (as I suffer from chronic pain), a new fridge freezer when mine broke for example. You can always leave a message in your journal asking for what is acceptable, and they'll send the message to the relevant personel. You can also find a list online by googling. Always make sure you keep the receipts, just in case they ask. When I had mine just last month, they wanted to see absolutely everything, my savings account, bank account, help 2 save etc etc.
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- Bauhaus
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1 year 2 months ago #283254 by Bauhaus
Replied by Bauhaus on topic savings and deprivation of capital
Hi Chris
Thank you so much, that was just what I needed to know.
I am asking for a relative who UC have asseseed as not being able to work again. The person is being given ill health retirement by their employer and can receive a lump sum of veriable size: we trying to work out which will be best: to keep savings below £6000 or to take higher to provide more of a buffer -but receive less benefits payments). Very difficult choice.
Thank you so much, that was just what I needed to know.
I am asking for a relative who UC have asseseed as not being able to work again. The person is being given ill health retirement by their employer and can receive a lump sum of veriable size: we trying to work out which will be best: to keep savings below £6000 or to take higher to provide more of a buffer -but receive less benefits payments). Very difficult choice.
The following user(s) said Thank You: Chris
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- denby
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1 year 2 months ago #283260 by denby
Replied by denby on topic savings and deprivation of capital
Hi Bauhaus, the employer may not agree to it, or the amount may not be enough to bother. But it is possible to set up a pretty simple [therefore not expensive in legal fees] Trust which eg you could be Trustee of, so that the poorly person does not have direct access to the money. They will then have the maximum appropriate benefits entitlement and the pay-out will not be lost in living until down to the threshold, with the big worry of justifying it's use.
I mention it as a relative of mine has written their Will in this way to benefit a young poorly relative when the time comes. [Not that there'll be much but it saves that worry of rocking the DWP boat]
Best, Denby
I mention it as a relative of mine has written their Will in this way to benefit a young poorly relative when the time comes. [Not that there'll be much but it saves that worry of rocking the DWP boat]
Best, Denby
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- Chris
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1 year 2 months ago - 1 year 2 months ago #283264 by Chris
Nothing on this board constitutes legal advice - always consult a professional about specific problems
Replied by Chris on topic savings and deprivation of capital
Hi,
Something similar happened to me, back in May 2022, I was awarded a backdated lump sum from PIP of £10k, but because I assumed it was £5k per year you got to spend (meaning I thought I had 2 years), and not the whole lot where it wasn't counted as capital, I had a review of my UC in June, and because I'm still £4k over the £6,000 savings limit, my UC has been cut by £20 for every £1,000 over I had, per month. It's not good, as £6k doesn't really get you far these days, but I suppose you just have to accept that this is the govt. rules.
Regards,
Chris.
Something similar happened to me, back in May 2022, I was awarded a backdated lump sum from PIP of £10k, but because I assumed it was £5k per year you got to spend (meaning I thought I had 2 years), and not the whole lot where it wasn't counted as capital, I had a review of my UC in June, and because I'm still £4k over the £6,000 savings limit, my UC has been cut by £20 for every £1,000 over I had, per month. It's not good, as £6k doesn't really get you far these days, but I suppose you just have to accept that this is the govt. rules.
Regards,
Chris.
Nothing on this board constitutes legal advice - always consult a professional about specific problems
Last edit: 1 year 2 months ago by Chris.
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- rjstone
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1 year 2 months ago #283294 by rjstone
Replied by rjstone on topic savings and deprivation of capital
Please could i ask at what point does income become capital? Is it immediately the income is received? Or after the payment period?
For example if you had just under £6k in an account and were paid income related benefits for the next period which took you over the capital limit, but spent that income before the next payment?
For example if you had just under £6k in an account and were paid income related benefits for the next period which took you over the capital limit, but spent that income before the next payment?
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