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BACKDATED PIP PAYMENTS AND SAVINGS

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1 year 1 day ago #284937 by BJ
Hi my husband has just had £3,500.00 back payment on our joint claim
It has taken us over the £6k by quite a margin
We are on Income related ESA
I have had conflicting information about how it effects our benefits
Some say under £5k we have a year to spend it
Others say its not counted
Does anyone know please

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1 year 1 day ago #284957 by Gary
Replied by Gary on topic BACKDATED PIP PAYMENTS AND SAVINGS
Hi BJ

Backdated PIP payment is ignored for one year, after which it will be classed as capital.

If you have savings under £6k then any means tested benefits will not be affected.

Most means-tested benefits are only paid to people with less than £16,000 in savings (tax credits and the guarantee element of Pension Credit are not affected by this rule).

If you (and your partner) are under Pension Credit age and have total capital over £6,000 then the government assumes you receive £1 per week for every £250 of capital you have above £6,000. 

If you are over Pension Credit age the government assumes you receive £1 per week for every £500 of capital you have above £10,000.

Gary

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