what if? housing benefits and savings?

[babycrazy1706]

To qualify for housing benefit you have to have less then £6ooo savings. What if you have less than that and you are renting somewhere. You have a low income. Then you get left some inheritance of 1ok. Would you be expected to 'unclaim' housing benefit and use your inheritance up to pay your rent and then reclaim?

 

[pinkstarbinks]

I think so yes but I've no authority/experience/expertise on the matter. I think it'd be classed just the same as for instance earning an extra £10,000 for the year in your salary etc. money's money if you don't have it they'll substitute, if not I would guess they won't but I could be very wrong just declare it and see what they say

 

[emyandpotato]

Yeah you would no longer qualify. But on minimum full time wage you only qualify for about £90 a month so it wouldn't be a huge dent in the inheritance anyway, unless you live in a very expensive area where rent prices and HB is higher, in which case you could always entrust the savings to someone you trust not to use it, like a parent, if you really need to use it when you're back on your feet and don't need the HB. Not condoning it but just an idea!

 

[Pearls18]

I'm not sure how it works but I would definitely ask and make sure so not to be over paid. I had a friend who went to university and struggled to find work afterwards so went on job seekers, she had inheritance (over £20,000) but she was wanting to use it for a house deposit, so she transferred it to her parents so she could claim. I thought that was so wrong tbh and completely defeats the point of benefits, to be fair she wasn't on them long as she was determined to get a job and did get one, but there's a reason benefits are in place and that's for those in genuine need, although not ideal for inheritance to be used for bills, money is money if you can't earn it or a lot of it, the system isn't there to help people save (not saying that is what's you're doing at all just moaning about my friend lol )

Next year my hubby gets a one off bonus in work which will be a pain as it'll effectively cancel out the tax credits we get for child care, but I guess that's how it goes, we will have more money that year so need less assistance, it's a bummer we won't really "benefit" from the bonus but we'll have the satisfaction of paying the childcare all ourselves....ha....!

 

[emyandpotato]

I'm not sure how it works but I would definitely ask and make sure so not to be over paid. I had a friend who went to university and struggled to find work afterwards so went on job seekers, she had inheritance (over £20,000) but she was wanting to use it for a house deposit, so she transferred it to her parents so she could claim. I thought that was so wrong tbh and completely defeats the point of benefits, to be fair she wasn't on them long as she was determined to get a job and did get one, but there's a reason benefits are in place and that's for those in genuine need, although not ideal for inheritance to be used for bills, money is money if you can't earn it or a lot of it, the system isn't there to help people save (not saying that is what's you're doing at all just moaning about my friend lol )

Next year my hubby gets a one off bonus in work which will be a pain as it'll effectively cancel out the tax credits we get for child care, but I guess that's how it goes, we will have more money that year so need less assistance, it's a bummer we won't really "benefit" from the bonus but we'll have the satisfaction of paying the childcare all ourselves....ha....!

Infuriating isn't it! My OH's £14k wage could increase all the way to £23k and with tax credits and the amount he gets taxed and student loans it works out exactly the same!

 

[weewdy]

Yes you will no longer qualify and if you do not notify them you will be committing benefit fraud. A neighbour has recently been conficted of benefit fraud because she had an inheritance off of her father. She had to pay back £14000 plus got 500hrs community service.

 

[Midnight_Fairy]

Just spend it

 

[emyandpotato]

Just spend it

I think it still counts as income if it goes in your account? Unless you get it in cash.

 

[special_kala]

Just spend it

If they think you have spent it just to avoid your benefits being stopped i think they can stop your benefits anyway

 

[Midnight_Fairy]

I was joking...

 

[sue_88]

You can have up to £16k before your benefits are stopped, over £6k and they'll reduce them accordingly as you can (rightly) afford to pay your rent yourself if you're sitting on £10k.

If you spend it, it's called depreciation of capital, which would include things like a new car, paying off non essential debts, buying new kitchen/bathroom etc.

 

[Wriggley]

Yeah they would expect you to use it for rent unfortunately. Otherwise they ate payino your rent whilst your sitting on 10k of money. Obviously that sucks for you tho

 

[smileyfaces]

I was joking...

 

[babycrazy1706]

You can have up to £16k before your benefits are stopped, over £6k and they'll reduce them accordingly as you can (rightly) afford to pay your rent yourself if you're sitting on £10k.

If you spend it, it's called depreciation of capital, which would include things like a new car, paying off non essential debts, buying new kitchen/bathroom etc.

Is depreciation of capital not allowed then? I've never heard of it. Tried to google it but doesn't make sense to me

 

[lilyd]

I thought the savings cap was £16k? I could well be wrong but I thought I read this when I was helping a friend with her forms.

 

[lilyd]

You can have up to £16k before your benefits are stopped, over £6k and they'll reduce them accordingly as you can (rightly) afford to pay your rent yourself if you're sitting on £10k.

If you spend it, it's called depreciation of capital, which would include things like a new car, paying off non essential debts, buying new kitchen/bathroom etc.

Is depreciation of capital not allowed then? I've never heard of it. Tried to google it but doesn't make sense to me

In a nutshell it basically means you can't spend money on non essentials whilst you are getting assistance to pay your rent. If you spend it and they find out they can prosecute you x

 

[BabyMamma93]

Just spend it

I think it still counts as income if it goes in your account? Unless you get it in cash.

then if you have cash you get done for money laundering.. never win lol!!
like said, can u give it to someone you trust, its not fair that you are expected to pay rent for money that has been left for you...
the only thing is, be careful what you do with the money, theres alot in the papers about people being caught out for 'benefit fraud' because they have been abroad while claiming HB.. again i do think you should be able to use inheritence for anything you want, but it also does make sense that you should pay your own rent if you have that money..
like i just said, you can never win!!x

 

[Pearls18]

Just spend it

I think it still counts as income if it goes in your account? Unless you get it in cash.

then if you have cash you get done for money laundering.. never win lol!!
like said, can u give it to someone you trust, its not fair that you are expected to pay rent for money that has been left for you...
the only thing is, be careful what you do with the money, theres alot in the papers about people being caught out for 'benefit fraud' because they have been abroad while claiming HB.. again i do think you should be able to use inheritence for anything you want, but it also does make sense that you should pay your own rent if you have that money..
like i just said, you can never win!!x

How is it unfair? If somebody isn't getting any benefits but then inherits that doesn't mean they get to spend it how they wish necessarily, if they have debt or bills they are struggling to cover it will no doubt have to be prioritised for that. It doesn't matter where money has come from, our first priority has to be to pay for the necessities and the government should only have to step in when it is not possible for us to do so, as soon as we have money, however that is gained, then we don't need the government to help. I understand it being a bit of a bummer but think it's far from unfair. I don't get angry about benefits or anything I'm really glad we have the system in place, but I would be pissed to know people are getting their rent paid for them and yet have a nest egg set aside while I am paying taxes and trying to save myself. (Again not saying that is what you're doing OP I understand you need to check).

 

[sue_88]

Just spend it

I think it still counts as income if it goes in your account? Unless you get it in cash.

then if you have cash you get done for money laundering.. never win lol!!
like said, can u give it to someone you trust, its not fair that you are expected to pay rent for money that has been left for you...
the only thing is, be careful what you do with the money, theres alot in the papers about people being caught out for 'benefit fraud' because they have been abroad while claiming HB.. again i do think you should be able to use inheritence for anything you want, but it also does make sense that you should pay your own rent if you have that money..
like i just said, you can never win!!x

Eh? How is it not fair that you are expect to pay your rent with YOUR money?? This is a sense of entitlement that is wrong with 'some' (OP not you!) people on benefits. Free money.

No, it's not free money, it's money to help those who have none.

If you are named in the Will, you also cannot give the money away...this again is deprivation of capital. The money is yours and therefore you cannot be seen to be giving it away just so you can stay on benefits.

It's no wonder the country went down the shitter with some peoples attitudes.

 

[sue_88]

You can have up to £16k before your benefits are stopped, over £6k and they'll reduce them accordingly as you can (rightly) afford to pay your rent yourself if you're sitting on £10k.

If you spend it, it's called depreciation of capital, which would include things like a new car, paying off non essential debts, buying new kitchen/bathroom etc.

Is depreciation of capital not allowed then? I've never heard of it. Tried to google it but doesn't make sense to me

No, it's not allowed. It basically means as PP said, if you're seen to be getting rid of the money to stay on benefits they'll class you as still having it anyway and reduce you benefits regardless.

Best advice would be to bank the money, declare it and have your benefits reduced (not stopped unless you've got £16k) then reclaim or update your circumstances when it's gone below £6k.