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Impact on benfits (ESa, HB, council tax) if capita
- tigerblue
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4 years 6 months ago #252744 by tigerblue
Impact on benfits (ESa, HB, council tax) if capita was created by tigerblue
Hi
I’ve got a fairly good sum invested for my future, but at 60 have decided to look into using some of it to buy a flat by the sea. Fed up of existing, not living and lockdown has made me reconsider this. The reason I can’t just get a transfer (Live in a council flat now) is because it will be a different lock authority and thunk it would be a very long wait after I registered.
If I take out a lump sum to buy a flat, cover moving costs etc, I assume it will impact benefits? But how and for how long? Will I be able to reapply for everything once settled and back to having no cash? Do I need to have enough to live on for a while as they will disallow any claim?
I assume I can’t be forced to take a monthly pension from the rest of my money?
Any help advice or pointers to other sources of help gladly accepted.
Thanks! Chris
I’ve got a fairly good sum invested for my future, but at 60 have decided to look into using some of it to buy a flat by the sea. Fed up of existing, not living and lockdown has made me reconsider this. The reason I can’t just get a transfer (Live in a council flat now) is because it will be a different lock authority and thunk it would be a very long wait after I registered.
If I take out a lump sum to buy a flat, cover moving costs etc, I assume it will impact benefits? But how and for how long? Will I be able to reapply for everything once settled and back to having no cash? Do I need to have enough to live on for a while as they will disallow any claim?
I assume I can’t be forced to take a monthly pension from the rest of my money?
Any help advice or pointers to other sources of help gladly accepted.
Thanks! Chris
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- Gordon
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4 years 6 months ago - 4 years 6 months ago #252754 by Gordon
Nothing on this board constitutes legal advice - always consult a professional about specific problems
Replied by Gordon on topic Impact on benfits (ESa, HB, council tax) if capita
Chris
Is there any reason that you need to take the money out of what I assume is your pension pot before you are in a position to purchase the property?
You don't mention what type of ESA that you receive so I am limited on the advice that I can give but any Income Related benefits (ESA(IR), HB) will potentially be reduced if your assets and savings exceed £6000 and will stop if you exceed £16,000.
You will not be "required" to take a monthly pension by the DWP until you reach State Retirement Age.
Gordon
Is there any reason that you need to take the money out of what I assume is your pension pot before you are in a position to purchase the property?
You don't mention what type of ESA that you receive so I am limited on the advice that I can give but any Income Related benefits (ESA(IR), HB) will potentially be reduced if your assets and savings exceed £6000 and will stop if you exceed £16,000.
You will not be "required" to take a monthly pension by the DWP until you reach State Retirement Age.
Gordon
Nothing on this board constitutes legal advice - always consult a professional about specific problems
Last edit: 4 years 6 months ago by Gordon.
The following user(s) said Thank You: tigerblue
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- tigerblue
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4 years 5 months ago #252772 by tigerblue
Replied by tigerblue on topic Impact on benfits (ESa, HB, council tax) if capita
Gordon, thanks for your reply.
Having talked to financial adviser I am looking into getting a small mortgage as the tax impact of withdrawing all I would need is huge! And it would deplete my pension fund too much.
So now I’d like to understand a little more about the impact on IR ESA of a cash sum of say £15k if only in my bank for days? It would be used as deposit. Assume still seen as income?
Thanks in advance
Having talked to financial adviser I am looking into getting a small mortgage as the tax impact of withdrawing all I would need is huge! And it would deplete my pension fund too much.
So now I’d like to understand a little more about the impact on IR ESA of a cash sum of say £15k if only in my bank for days? It would be used as deposit. Assume still seen as income?
Thanks in advance
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- Gordon
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4 years 5 months ago #252800 by Gordon
Nothing on this board constitutes legal advice - always consult a professional about specific problems
Replied by Gordon on topic Impact on benfits (ESa, HB, council tax) if capita
Chris
ESA(IR) considers all of your savings and assets, even the money in your pocket so are you talking a total of £15,000 or an additional £15,000.
The savings limits are black and white unless you can show that the money should be disregarded.
If your assets and savings are £16,000 or less then you retain your entitlement to ESA, HB, etc., if they are more than £16,000 then you lose your entitlement.
So, the first thing to avoid is having more than £16,000 as you are then fighting multiple battles with the DWP and your Local Authority.
If you are under the limit then you are arguing about a deduction being made from your benefits.
Ultimately it is up to a Decision Maker to decide whether the money should be disregarded, there is a 182-page guide covers just this topic.
I still have to query whether you need to have the money paid to you it should be possible to pay the money directly from your pension to the vendor to pay the deposit because it never goes through your account it should not then be a problem.
Gordon
ESA(IR) considers all of your savings and assets, even the money in your pocket so are you talking a total of £15,000 or an additional £15,000.
The savings limits are black and white unless you can show that the money should be disregarded.
If your assets and savings are £16,000 or less then you retain your entitlement to ESA, HB, etc., if they are more than £16,000 then you lose your entitlement.
So, the first thing to avoid is having more than £16,000 as you are then fighting multiple battles with the DWP and your Local Authority.
If you are under the limit then you are arguing about a deduction being made from your benefits.
Ultimately it is up to a Decision Maker to decide whether the money should be disregarded, there is a 182-page guide covers just this topic.
I still have to query whether you need to have the money paid to you it should be possible to pay the money directly from your pension to the vendor to pay the deposit because it never goes through your account it should not then be a problem.
Gordon
Nothing on this board constitutes legal advice - always consult a professional about specific problems
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- Mark
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4 years 5 months ago #252815 by Mark
Replied by Mark on topic Impact on benfits (ESa, HB, council tax) if capita
Hi Gordon
Would you recommend not exceeding, say 15k in savings just to keep yourself well under the 16k?
If you had 15k in premium bonds and you won a couple of grand would you have to declare it immediately or do you have any wiggle room to spend it?
You mention the DM has a 182 pages guide. Is there access to this in the public domain?
Thanks.
Mark
Would you recommend not exceeding, say 15k in savings just to keep yourself well under the 16k?
If you had 15k in premium bonds and you won a couple of grand would you have to declare it immediately or do you have any wiggle room to spend it?
You mention the DM has a 182 pages guide. Is there access to this in the public domain?
Thanks.
Mark
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- tigerblue
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4 years 5 months ago #252828 by tigerblue
Replied by tigerblue on topic Impact on benfits (ESa, HB, council tax) if capita
Gordon
If I possibly can, then I will get it paid direct. I’ll check it out in detail.
And I will endeavour to keep it below £16000 if I do need to have it in my account though.
Thanks very much for your help.
Chris
If I possibly can, then I will get it paid direct. I’ll check it out in detail.
And I will endeavour to keep it below £16000 if I do need to have it in my account though.
Thanks very much for your help.
Chris
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