contributions based esa support group and pip

ja_bu

Hi there,
I am in the above two what do I do if my savings go above 6000. Is it ok to leave it if it goes over (as of not means tested..?) Do I spend it on needed items, please advise what are need items.
My best regards,
James

poppy123456

None of those benefits are means tested so having savings above £6,000 will not affect any of them. However, if any part of your ESA is Income Related then for every £250 or part there of over £6,000 there's a deduction of £1/week in your ESA. This also applies to housing benefit.

If you're claiming council tax reduction then all local Authorities have their own savings rule. Some have a maximum savings limit of £6,000 before entitlement to CTR ends.

ja_bu

Hi Poppy yes its pip and contributions based ESA.

Ok thank you Poppy. Lastly what about the housing benefit / HMRC elements. Would that have to be under 6000 ~ total between us (wife.) 3000 each for example -  Wife works part time, 14 hours a week.

Thank you!

Adrian_Scope

Once your combined savings are above £6000 you would need to report this to housing benefit@ja_bu. Unless you're over pension age, savings of over £6,000 usually affect housing benefit. 

poppy123456

HMRC elements? If you mean tax credits then they are not affected by savings.

ja_bu

Thank you so much Poppy and Adrian
So it's housing only then 🙏
Is this whether I'm jointly with housing with my partner or it doesn't matter, how will it be deducted; the £1 off every 250.00 after over 6000

If I go over this threshold Can I spend the excessive pip money on needed things if this arrises to not go over the 6000 threshold.

Best wishes

James

poppy123456

It doesn't matter if it's joint or single the savings limit is still the same. For every £250 or part there of over £6,000 there's a £1/week deduction. You can spend your money on anything you want to. What ever is left after the period it's paid for becomes savings, which then affect means tested benefits, if more than £6,000.

Savings of less than £6,000 are ignored. Don't forget that if you're claiming council tax reduction then the savings limit is different for every local council and some may have a maximum savinga limit of £6,000.

ja_bu

Hi Poppy

I feel you know the benefit system well. Have you had much experience with housing especially, and is it just that straight forward in your experience. That Housing will just deduct the £1 if over £250 savings, and will ask for bank statements etc

poppy123456

I have a lot of personal experience with the benefits system. 

ja_bu said:

That Housing will just deduct the £1 if over £250 savings, and will ask for bank statements etc

That's not correct. The savings limit isn't £250, It's £6,000. There's a £1/week deduction for every £250 (or part there of) over £6,000. For example, if you have £6,100 savings they will deduct £1/week. If you have £6,300 savings they will deduct £2/week. They may ask for bank statements.

If your savings are less than £6,000 you do not need to tell them.

ja_bu

Hi Poppy!
Thank you!
Yes I did mean 250 over the 6000. Though like you kindly said this could be 125  etc.

Thank you again.
Once/if I need to declare I will need to produce a bank statement.

Best wishes for the day!

James

Community_Scope

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