saveings

mumsgirl wrote:

I know this is probably a stupid question but I really don't understand - what's to stop Brian taking out his savings and leaving, say, £5k in the bank, will they still deduct and for how long will they do it (assuming they were aware of the excess savings in the first place. Will they want evidence for what he used the money for too? Perhaps he was saving to buy a car, for example?

As you have asked the question, I am obliged to answer in detail in order to protect the integrity of the site.

There are two issues associated with what you are suggesting.

First savings is not limited to what is in your bank account. It emcompasses assets such as shares, bank accounts and cash, so simply taking money out of the account will not change the value of savings.

Secondly, depriving yourself of an asset with the intention of maintaining or increasing a benefit is a serious offence.

Now to be clear, I am not suggesting that taking the excess funds from you bank account and buying a flat screen television would fall under this category. However, there is no clear definition of what is allowed and what is not.

Therefore anybody who disposes of an asset whilst receiving an Income Related benefit, must be prepared to show that the expenditure was reasonable.

Finally, is it likely that the DWP will pursue someone for increasing their benefit by a couple of pounds a week, then the answer is probably no, however, it does not mean they can't.

Gordon