loan

i applied for a loan last week from the bank for 15k , then i called the dwp who told me that if i took the loan i would have to inform them , i then decided due to uncertainty of forthcomming benefit tests not to take the loan so i called the bank who told me the money had been transfered already but as there is 20 day cooling period i told them to take the money back which they have done

my question is do i have to infrom this to dwp , or is it ok now as the money has gone back to the bank and the loan has not been taken ?

Are you receiving any means-tested benefits ie Income Support, Housing Benefit, Council Tax Benefit or income- based ESA?

If so, you should inform the DWP/local authority as the fact that the loan was transferred to your bank account, may mean you are treated as having accrued capital, and any subsequent disposal of the capital may be considered as notional capital, which in effect means you are treated as having the capital even if you no longer have it.

The capital rules for means-tested benefits are complex, so it is essential that you check your benefit entitlement situation, otherwise you could be overpaid. Always seek confirmation in writing.

If you do not receive any means-tested benefits, you don't have to declare your capital with the exception of any private pension received after April 2001 which amounts to £85 or more, and you receive IB or contribution-based ESA.

yes i get income support , and housing benefit , but was told by dwp staff member that i have to inform them if i take the loan , but i did not take it as it went back to the bank so would it be ok to just leave the issue as it is

saud wrote:

yes i get income support , and housing benefit , but was told by dwp staff member that i have to inform them if i take the loan , but i did not take it as it went back to the bank so would it be ok to just leave the issue as it is

The problem with leaving it, is if your picked for a check of your documents your statements will show the money in your bank even for a day

so its bet to inform them then ? also earlier this year my father in law came here from abroad and transfered 20k to a account in my sons name who i am the trustee for he bought a car and shipped it back to his home country i have kept ta copy of the reciept for the car , and also the bank tranfer letter and also a copy of his air ticket do i have to inform dwp about this ? this was a few months ago

If you do not receive any means-tested benefits, you don't have to declare your capital with the exception of any private pension received after April 2001 which amounts to £85 or more, and you receive IB or contribution-based ESA.

If you receive benefits that are not means-tested
(DLA, IB) are you allowed to spend your money as you see fit? I'm sure I read something recently that said you could not reduce your capital - eg pay off your mortgage - in order to qualify for means-tested benefits but I wasn't sure if it applied to people already in receipt of those benefits or to everyone. I appreciate that IB is taxable but that's significantly different to it being means-tested.