What can I spend my money on?

Avril48

Can I spend back dated Pip money on anything I want to?

When it comes to regular benifit payments (Pip and UC), what can I spend this money on? I need a new cooker and carpets, can I get these on credit and pay back weekly/monthly from benifits? 

Thanks in advance for any help with this 🙂

poppy123456

You can spend your money on anything you want to and this includes lump sums you received for money that was owed. 

Lump sums from benefits that are owed are disregarded from capital for 1 year from the date you received it. 

Yes you can have them on credit, if the lender accepts your application. 

Ray212

You can spend the money on anything you like. No one can tell you what you can and can't buy

scape1960

Hi Poppy, can I clarify what you meant by the answer you gave above - ‘ Lump sums from benefits that are owed are disregarded from capital for 1 year from the date you received it’. Does that mean you are only allowed a certain amount in your savings account? TIA

poppy123456

scape1960 said:

Hi Poppy, can I clarify what you meant by the answer you gave above - ‘ Lump sums from benefits that are owed are disregarded from capital for 1 year from the date you received it’. Does that mean you are only allowed a certain amount in your savings account? TIA

For means tested benefits for working age people the lower limit is £6,000. If claiming UC then there’s a £4.35/month deduction for every £250 or part thereof over that amount.

For legacy benefits such as Income Related ESA/JSA, Income Support and Housing benefit there’s a £1/week deduction. 

Savings of more than £16,000 means there’s no entitlement to any means tested benefits. 

scape1960

So I’m assuming that because PIP is not a means tested benefit it won’t affect benefits. I do also get LCWRA, ESA. However, I don’t get much money as I have an occupational pension so ESA is reduced to a minimum (I only really claim to get my credits for national insurance for pension when I reach retirement age). Am I assuming right that my savings are not taken into account? TIA!

poppy123456

scape1960 said:

So I’m assuming that because PIP is not a means tested benefit it won’t affect benefits. I do also get LCWRA, ESA. However, I don’t get much money as I have an occupational pension so ESA is reduced to a minimum (I only really claim to get my credits for national insurance for pension when I reach retirement age). Am I assuming right that my savings are not taken into account? TIA!

PIP isn't means tested but any money you don't spend at the end of the period it's paid for then it become capital so it will be included.

LCWRA refers to Universal Credit. Can you please confirm if it's this you're claiming or New style/contributions based ESA as well? or is it just the ESA?

scape1960

It’s New Style contributions based. Sorry, but I’ve always worked until a couple of years ago and not sure what the difference between these benefits are. I know I get the higher rate and don’t need to have any assessments or fit notes etc. As I said earlier, it’s really not for the money I claim as I get such a small amount because of works pension, I really just claim for NI contributions. I just really started getting worried when reading the above about some capital being disregarded.

poppy123456

scape1960 said:

It’s New Style contributions based. Sorry, but I’ve always worked until a couple of years ago and not sure what the difference between these benefits are. I know I get the higher rate and don’t need to have any assessments or fit notes etc. As I said earlier, it’s really not for the money I claim as I get such a small amount because of works pension, I really just claim for NI contributions. I just really started getting worried when reading the above about some capital being disregarded.

Then your ESA is not means tested so capital makes no difference. The only thing that affects it is pensions over £85/week. 

Avril48

Thanks loads for your answer Poppy123456 😊