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Does a current account count for £6000 limit ?

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11 years 2 months ago - 11 years 2 months ago #97380 by A Kaplan
I have recently been awarded ESA and put in the Support Group.Thanks for the advice I got on this forum and from your guides.It took 17 weeks for them to reply to me after the date my form was due in by.So hold in there everyone, they will get in touch eventually, though it's really hard not knowing when the h they will reply, but they'll get back to you eventually.

My question is this.I'm planning what to do now with my money and need to know as I can't find the answer anywhere else even on the DWP site which tell;s you the figures for the limits but not what they regard as Capital.

And all advice sites or forums elsewhere only talk about between £6000 and £16000 in savings.

Sorry for being long winded but it's really hard work trying to get this information.

Back to my question and what I really need to know. Do the DWP count a current account balance in deciding if you are over £6000 or not or is it just the balance in a savings account they count ? If they count both as capital does that mean I need to keep the balance in total across both a savings account and a current account to under £6000 to avoid any benefit being paid back as I think it's best to as you lose more in benefits lost than you gain in interest from savings for any amount above £6000.

So do I have to keep the combined total of my current and savings account under £6000 or do I only have to keep the balance on my savings account below £6000 and I do not need to be so careful about keeping my current account under the limit ?

Thanks to anyone who can help and who has helped me before.Take care and good luck everyone.

Yours sincerely
A Kaplan
Last edit: 11 years 2 months ago by Gordon.

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11 years 2 months ago #97386 by Gordon
Kaplan

By capital the DWP are referring to the following, not necessarily complete list

- All bank accounts, both current and savings
- Cash
- premium bonds
- shares
- ISAs
- Any investment (e.g. a second house)
- Any debt owed to you that can be reclaimed at the present time

There are others.

The house you live in is not usually considered an asset, and your benefit payments are disregarded as capital for the period that they are paid over(e.g; one week, two weeks, four weeks).

If your total assets are under £6000 then there will be no deduction from your benefits, any amount over £6000 results in a £1/w deduction for every £250 in excess of the £6000. Capital of over £16,000 will mean you lose your eligibilty for the benefit.

I hope this explains it.

Gordon

Nothing on this board constitutes legal advice - always consult a professional about specific problems
The following user(s) said Thank You: Jim Allison BSc, Inst LE, MBIM; MA (Consumer Protection & Social Welfare Law)

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