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savings limit

connor123
connor123 Member Posts: 20 Listener
please can someone clarify what the savings limit is for claiming hb/ct,i have been reading through the threads to help me fill out my esa forms and to my horror i have read the limit is or maybe 6000 and i have had over for about 2 years,i am shaking at the moment i have severe mh problems and i dont know where to turn it is making me really ill

Comments

  • poppy123456
    poppy123456 Member Posts: 28,583 Disability Gamechanger
    Hi,

    The lower savings limit has always been this amount and it does state on all correspondence from local councils and DWP that all changes must be reported. You will need to contact your local council to report your savings, the worst that is most likely to happen is you'll have an over payment that will need to pay paid back.
  • connor123
    connor123 Member Posts: 20 Listener
    thanks poppy,this is going to be an awful mess and i dont know how i am going to deal with this as i have longstanding social anxiety even speaking on the phone,i always thought you where allowed 16000 and i have had between 6000 and 15000 over the last 3 years and i feel terrified of the consequences,i have only found out about this today and i am terrified of any prosecution or having to be interviewed,could you tell me my best course of action please
    many thanks
  • poppy123456
    poppy123456 Member Posts: 28,583 Disability Gamechanger
    Benefits are affected £1 for every £250 over £6000, so for every £1000 over your benefits are deducted by £4. You'll need to contact your local council ASAP and tell them you have savings over £6000. The sooner you do this the better because it's always better for you if you tell them rather then them finding out their self and they would find out eventually. I highly doubt they will prosecute you but you will of course need to repay back any over payment. It will most likely be deducted from your housing benefit. I'm unable to give you any further advice regarding this but please do ring them first thing tomorrow morning. Good luck.
  • connor123
    connor123 Member Posts: 20 Listener
    thanks again poppy,this has got me in a right mess i have only just completed my esa3 and that was a nightmare now this,i have just checked my bank statements and i went over 6000 in feb.2016 i honestly thought i was allowed 16000,have you a rough idea how much i will need to pay back?and can i contact them by email as i will find that easier as i could not handle being interviewed
    many thanks
  • poppy123456
    poppy123456 Member Posts: 28,583 Disability Gamechanger
    I have no idea how much over payment you'll have. For contacting them via email then you'll need to look online for ways to contact your local council because all councils are different.
  • BenefitsTrainingCo
    BenefitsTrainingCo Member Posts: 2,628 Pioneering
    Hello Connor123

    Poppy123456 is right in that benefit entitlement is reduced by £1 for every £250 above £6,000.  The capital limit is £16,000 so as long as your capital is below this amount you will remain entitled to benefit, it is just the amount of benefit that will reduce.  

    It is also good advice to tell HB/CTR and ESA of capital amounts straight away.  Be ready to give bank statements for the period your savings are above £6,000 as HB/CTR/ESA are likely to want to see proof of the amount of savings you have. 

    Best wishes

    Maria

     
    The Benefits Training Co:
    Paul Bradley
    Michael Chambers
    Will Hadwen
    Sarah Hayle
    Maria Solomon
    David Stickland
  • connor123
    connor123 Member Posts: 20 Listener
    thank you maria,i have been told by cab today my limit is 16000 i am so confused
  • poppy123456
    poppy123456 Member Posts: 28,583 Disability Gamechanger
    The higher limit for means tested benefit is £16000 and once you hit this then all your benefits stop. The lower limit is £6,000 please contact your local council as advised. Did you contact them today?
  • connor123
    connor123 Member Posts: 20 Listener
    edited November 2018
    no poppy i contacted cab today and they told me 16000 and they are going to email me some questions to make sure
  • poppy123456
    poppy123456 Member Posts: 28,583 Disability Gamechanger
    Savings of £6000 affect your housing benefit £1 for every £250 over that amount. CAB are wrong here.

    This was copied and pasted from this link.

    Savings over £16,000 usually mean you will not be able to get Housing Benefit, although this £16,000 limit does not apply if you or a partner get Pension Credit Guarantee.

    Savings over £6,000 (£10,000 for Pensioners) will usually affect how much Housing Benefit you can get.


  • connor123
    connor123 Member Posts: 20 Listener
    yes poppy i agree i think they are wrong,when they contact me tomorrow i will have to point out this lower limit,and if you are right witch i fear you are i will ask them if they will contact the relevant agencies on my behalf

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