Savings query

sim123

Hi, thanking people for their help in advance. I will soon be hitting £6000 in my savings and know I must declare it. What is the process? I'm under the impression you must send in bank statements. How far back would the bank statements go? Thanking you in advance

poppy123456

The process will depend on which benefits you're claiming. If it's UC then you can report the changes by reporting a change of circumstances and tell you about your savings. If it's other benefits such as Income Related ESA/JSA/Income Support then you'll need to ring them to tell them.

You don't need bank statements for this. You will likely need bank statements if your savings drop below that amount in the future.

Do also take into consideration that all cost of living payments are disregarded indefinitely from all your savings.

sim123

Thank you for replying. Do you need to report a change everything your savings increase? This is why I asked about showing bank statements 

poppy123456

There's a deduction for every £250 or part thereof over £6,000. For example, if you have £6,100 then you need to report it, then report it again if you have £6251 because that will be the next £250. You then do the same when it reaches that next £6,501. If your savings drop then you should report that and it will be then they are likely to ask for bank statements.

You haven't said which benefits exactly you're claiming because some have different deductions. Some are not means tested so capital doesn't affect it.

sim123

I get universal credit (lcwra) housing benefit and pip. How much are the deductions. So just to summarise I won't need to send bank statements? I have to inform them every time it goes over 250 even by £1. Thank you 

poppy123456

As you're claiming UC you will only be claiming housing benefit if you're either living in supported or temporary housing. Otherwise it will be paid with your UC known as housing element. They are 2 completely different benefits.

For UC the deductions for every £250 or part there of are £4.35/month. Yes, for every £250 or part thereof needs to be reported. You won't need bank statemets when reporting increase in savings.

If you're claiming council tax reduction then some local Authorites have a maximum savings limit of £6,000 before entitlement ends. You need to report the changes to them also. If you're claiming single person discount this will not be affected by savings.

sim123

Yes I get separate housing benefit. Do I need to inform them too?

woodbine

yes you do

sim123

Thank you. So universal credit take 4.35 for every 250 and how much do housing benefit take? 

poppy123456

For legacy benefits it's £1/week for every £250 or part thereof.

sim123

Sorry if this is a stupid question but is £1 for universal credit and another £1 for housing benefit so £8 per £250 

poppy123456

I believe that because you're living in either temporary or supported housing and you're claiming housing benefit for help with the rent then there will only be a deduction for UC, which will be £4.35/month for every £250 or part thereof, as i advised previously.

However, if you're also claiming council tax reduction you need to report the changes anyway because all local authorities have their own rules for that and i won't be able to give you any advice.