Housing Benefit claim with savings but no income
Rather difficult questions regarding housing benefits. I hope someone can advise? I was diagnosed with a severe neurological movement disorder several years ago, and have recently had my ESA (unfairly) stopped completely. Due to my disability I am unable to work, so this has left me with no income apart from housing benefit payments.
Recently I found out that I am able to cash in an old work pension early, after the pension company accepted that I am unable to work for the foreseeable future due to my illness. Once cashed in, I would have over £16,000 in my account, which is beyond the savings limit set by the Government in relation to claiming benefits. However, this pension money will be used as my sole income for the foreseeable future.
First question - While my Mother is currently helping with my income by loaning me a small amount each month, she is now at retirement age and needs the loans back, which means I have to claim my pension money as soon as possible. Even though the work pension money is going to be treated as my sole income, will the council treat it as savings and stop my housing benefit entirely, or do they take my financial situation into account?
Second question - Using the pension money, I plan on paying off a long standing debt in full, as well as paying back a large amount of the money my mother has loaned me previously. After doing this, my bank will be below the £16,000 limit set on savings allowed when claiming benefits. My question is, as these payments could look suspiciously like I'm deliberately trying to get my savings under £16,000, will these be classed as a 'deprivation of assets' by the council? (i.e. The council would assume that I'm deliberately trying to pass off my savings to get below the level).
I have full documentation in regards to my debts, but I am worried that the council will refuse to accept that the money lent by my mother has to be paid back, even though it's her retirement money. My bank statements do show the monthly payments, so would this be acceptable evidence, and do the council accept these situations?
Just to clarify, I am not in anyway trying to defraud the benefits system. I have just been put in this situation due to the DWP stopping my sickness benefits, so I have no other choice. I am extremely worried that if my Housing Benefits are stopped, the pension savings I do have will disappear within a year, when I need the savings to last far longer. Thanks.
