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Excessive savings
- CharFace
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2 years 1 month ago #276109 by CharFace
Excessive savings was created by CharFace
In short, I've messed up.
I got a review form from Housing Benefit last week, and when I started to look into it properly I realised my savings have been well over the £6k minimum for some time (although under £16k). The main cause has been Covid - I should have been spending the money on care, but at first it wasn't available and then my PA got long covid, and I've just been managing without help while the money built up. I've also been waiting to spend £4k on a wheelchair, but had a huge long process of dealing with Wheelchair Services to deal with first - I thought that would bring me below the limit and there'd be no issue, but turns out I miscalculated pretty badly.
I'm on ESA in the support group - my letters say 'income-related amount' and 'income-related entitlement' so I assume I'm on IR-ESA and I need to tell the DWP as well as the council, once I've got it all listed out and know where I stand.
Two questions: can anyone tell me what's likely to happen? I'm not fussed about payments being reduced in future - that will just bring my savings down below the threshold - but am I likely to have to provide details of all my various accounts for the last few years?
Secondly, I had a big chunk of PIP backpay in summer 2021 (thanks partly to B&W guides). I heard at one point that they're supposed to disregard backpay for a certain length of time when they calculate your savings, is there any truth to that?
Thanks in advance for any information!
I got a review form from Housing Benefit last week, and when I started to look into it properly I realised my savings have been well over the £6k minimum for some time (although under £16k). The main cause has been Covid - I should have been spending the money on care, but at first it wasn't available and then my PA got long covid, and I've just been managing without help while the money built up. I've also been waiting to spend £4k on a wheelchair, but had a huge long process of dealing with Wheelchair Services to deal with first - I thought that would bring me below the limit and there'd be no issue, but turns out I miscalculated pretty badly.
I'm on ESA in the support group - my letters say 'income-related amount' and 'income-related entitlement' so I assume I'm on IR-ESA and I need to tell the DWP as well as the council, once I've got it all listed out and know where I stand.
Two questions: can anyone tell me what's likely to happen? I'm not fussed about payments being reduced in future - that will just bring my savings down below the threshold - but am I likely to have to provide details of all my various accounts for the last few years?
Secondly, I had a big chunk of PIP backpay in summer 2021 (thanks partly to B&W guides). I heard at one point that they're supposed to disregard backpay for a certain length of time when they calculate your savings, is there any truth to that?
Thanks in advance for any information!
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- Gary
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2 years 1 month ago #276112 by Gary
Nothing on this board constitutes legal advice - always consult a professional about specific problems
Replied by Gary on topic Excessive savings
Hi CharFace
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, this is known as Tariff Income.
You may want to argue that £x amount has been put aside for your wheelchair but due to factors beyond your control you have not yet purchased the wheelchair.
In answer to your second question, yes there is truth in what you wrote, this payment is not counted as savings for one year and will not affect your income related or means tested benefits during this time, such as UC.
However, where benefits have been underpaid because of:
* an official error
* an error on point of law
Any payments over £5,000 can be disregarded for the length of the claim or until the award ends.
Gary
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, this is known as Tariff Income.
You may want to argue that £x amount has been put aside for your wheelchair but due to factors beyond your control you have not yet purchased the wheelchair.
In answer to your second question, yes there is truth in what you wrote, this payment is not counted as savings for one year and will not affect your income related or means tested benefits during this time, such as UC.
However, where benefits have been underpaid because of:
* an official error
* an error on point of law
Any payments over £5,000 can be disregarded for the length of the claim or until the award ends.
Gary
Nothing on this board constitutes legal advice - always consult a professional about specific problems
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