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Thread: Saving & Tariff Income

  1. #1
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    Saving & Tariff Income

    I was wondering how Tariff Income works? I know that for every £250 of saving past £6000 it counts as £1 income per week. However I am slightly confused.

    If your claiming ESA, Housing Benefit & Council Tax Support do you owe tariff income on all 3 benefit claims.

    For example.

    Lets say person A has £7000 in savings. £7000 - £6000 threshold = £1000.
    £1000 / 250 = £4. £4 x 3 benefit claims = £12 per week off your total benefits?

    Hope someone has some experience about this.

  2. #2
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    its just the esa that will be reduced by £4 per week, your rent and HB are worked out from your overall benefits & savings differently and they take 65 pence for every pound over your applicable amount. its more complicated than that but i dont know how to explain it myself sorry.

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    Crazy calculation in current climate of poor interest rates but saves government money.

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    Quote Originally Posted by fwipperie View Post
    Crazy calculation in current climate of poor interest rates but saves government money.
    If you have more than £6000, then you should be penalised.

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    Quote Originally Posted by toolook View Post
    If you have more than £6000, then you should be penalised.
    Fwipperie wasn't making a case for disabled people saving money. Fwipperie was making a hint about financial repression and how Government calculations are often some what stupid. I mean energy prices rise 10% each year while interest rates are extremely low yet anyone who is claiming benefits is penalized for saving.

    I personally find this decision hypocritical considering the current & previous Government's support the HOLD program which allows disabled people to purchase their own home under a shared ownership scheme. Part of that process requires the disabled person to have some lump sum to put towards the mortgage that covers the share of shared home ownership.

    And why? Well when Universal Credit is launched it is going to open a lot of opportunities for us disabled folk. A lot of us cannot work due to a whole range of medical conditions but that doesn't mean we are completely useless. We could manage to do 5 hours work a week to allow us to get out of our homes or socialize with other people.

    And I don't know about others but I have been a prisoner in my own home since I was 18. I'd love to have the chance to have a few hours a week where I could feel normal.

    But going on. All those people currently receiving Tax Credits will be in the same boat as us lot once they transfer to Universal Credit. They will be subject to Tariff income if they have savings over £6000. And I think it is already like that in some instances. So working people are being subjected to what they can and cannot save.

    This isn't a question of greed. It is a question of being allowed to have the same rights as others.

    For those of us who where born with severe disabilities we have zero chance of ever being able to hold down full time jobs. So imagine how restricted we are in our lifestyles.
    Maybe we don't want to spend our benefit money on wide screen TV, gaming consoles, holidays, time outside for activities. For those of us who are housebound and unable to do most things we really don't have much choice at all. If anything our carers decide what happens to our money.

    These are huge inequalities.

    Sorry but I had to write this.

    Just making a correction to post. The correct will be below in a new thread.
    Last edited by Sociopath; 23-06-14 at 21:35.

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    Quote Originally Posted by fwipperie View Post
    Crazy calculation in current climate of poor interest rates but saves government money.
    I don't understand how £1 in every £250 accounts for annual bank interest of 0.5%

    I mean £1 in every £250 is 0.4% but then you multiply that by 52 weeks and you get 20.8%

    The DWP think that disabled people some how can make more profit out of savings than the best hedge fund managers on Planet Earth!

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    Working people who don't receive any government benefits can save as much as they like as far as I'm aware.

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    Quote Originally Posted by seriouslyfedup View Post
    Working people who don't receive any government benefits can save as much as they like as far as I'm aware.
    Will have to check tax credit calculator.

    There is one cause for concern though. If you are disabled and don't get into WRAG you get zero disability support under the new universal credit system.

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    Quote Originally Posted by seriouslyfedup View Post
    Working people who don't receive any government benefits can save as much as they like as far as I'm aware.
    Just did a check and your right. If your getting tax credits your not subject to tariff income. This will be a nasty shock for those switching to Universal Credit from Tax Credits.

  10. #10
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    Quote Originally Posted by Sociopath View Post
    Just did a check and your right. If your getting tax credits your not subject to tariff income. This will be a nasty shock for those switching to Universal Credit from Tax Credits.
    That won't be an issue as the existing rules on tax Credits would apply for UC, in regards to this specific point.

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