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Thread: Over £6,000 for avery short while!!

  1. #1
    derbyshire lass
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    Over £6,000 for avery short while!!

    Can anyone tell me what happens if i receive compensation for more than £6000 but will pay numerous debts immediately out of the amount probably bringing it to under £6,000.Will i be asked to explain what i spent the money on or will they automatically cut the benefit accordingly?I am a carer for my husband and had a car accident.He receives DLA and now ESA.i have been ill too for a decade plus but our benefits advisor said i wouldnt get dla for me and carers so i have never applied now with both our health detiorating its very hard.Dont know how the PIP will affect us.?!Never had any money before scrimped all my life.dont smoke dont drink dont go out live on a budget and smart price!! Would just be nice to be allowed to have some money and spend it without counting every penny as you go round the shop!!You can never tell whats around the corner!I never envisaged being on benefits never mind 10 years plus!!I worked for 20 years plus and had several jobs and certainly wasnt work shy its so wrong everyone gets labelled as scroungers its so not the case!Moan over!!!

  2. #2
    Senior Member
    Join Date
    Apr 2012
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    801
    Depends. DLA is not income based, so not affected. Only Income based benefits could be affected, so if your ESA is contribution based it won't be affected either. Housing Benfit if yoyu get it would be affected. There's a sliding scale of reduction for balances between 6000 and 16000, so not all your pay out would affect it. Think it's £1 weekly reduction for every £250 over the £6000.

    While it would be great to spend and give yourself a treat , you have to be careful you don't fall foul of the Deprivation of Capital rule, where if they find out they'll still treat you as having the capital, and reduce your benefit accordingly even though you've already spent it. Some people have come a cropper with this through lack of knowledge.

    Debt repayment of more than the minimum monthly payment + arrears asked for is unfortunately classed as DOC. Even although it would save you on monthly interest. Not sure about family debts being repaid.
    Giving money to family is also seen as DOC, as is I think anything they cosnider unnecessary spending like a load of new furniture etc.

    I'm sure other more knowlegeable posters will advise you further and better than I can.

  3. #3
    Member
    Join Date
    Nov 2010
    Location
    Chiswick
    Posts
    89

    Savings

    If your in receipt of benefit and have savings the following rules apply;

    For housing benefit you can have no more than 16,000 in savings

    For benefits Income support, ESA, you can have no more than 6,000 in savings

    DLA is not means tested

  4. #4
    Senior Member Lighttouch's Avatar
    Join Date
    Mar 2011
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    Manchester
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    3,800
    Can anyone tell me what happens if i receive compensation for more than £6000 but will pay numerous debts immediately out of the amount probably bringing it to under £6,000.
    [/B]
    I would say paying off your debts is a wise move.

    I am a carer for my husband and had a car accident.He receives DLA and now ESA.i have been ill too for a decade plus but our benefits advisor said i wouldn't get dla for me and carers so i have never applied now with both our health deteriorating its very hard.

    I guess your husband is on the middle rate of care on DLA in which you might be able to claim carer's allowance.
    If you are finding it difficult to cope then contact your social worker who may be able to allocate some hours to assist your husband and give you a breather.

    Don't know how the PIP will affect us.?

    Depends how old your husband is. If he is 65 on or before April 2013 he will remain on DLA unless you tell them his condition has improved. If he is 65 after that date he will be asked to reapply for PIP at a later date.

    Unofficially you might consider buying British Sovereign gold coins with your excess money as they don't attract tax/ VAT/ capital gains tax and as this country is in such a state will only go up in value - a safe investment that can be cashed in as and when needed - unlike notes it can't evaporate with all this quantitate easing, https://www.ukbullion.co.uk/productDetails/2096

    I can suggest this as I don't claim ESA etc due to being a young pensioner - 11 years before I get a state pension!
    Last edited by Lighttouch; 07-10-12 at 12:42.

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