When does income become capital?

MCraft

I'm fortunate that my savings are always hovering around the upper £5,000 mark but it's getting difficult for me to keep it below £6,000. I've always lived on a small budget and recently been awarded PIP and seem to have more income than I know what to do with as I get SDP now too.

I claim income related ESA, housing benefit and PIP. The weeks they hit my account it's bringing my savings up near £6000. When does the income I get become capital for esa and housing?? Thank you if anyone knows

calcotti

Income is income for the period it is paid for and anything left over becomes capital at the end of the period, So if you receive a payment of say £500 paid every 4 weeks and only spend £450 in that 4 weeks then £50 becomes capital.

poppy123456

If your savings are close the £6,000 limit before there's any deductions, is there anything you need around your house? Furniture? white goods possibly?

ShirleyW

As Poppy says are there things that need replacing?

Bedding, clothing, some new shoes or a winter coat?

Are your carpets looking threadbare?  

What about treating yourself to something you've always wanted or maybe a holiday?

I know how you feel because for years my husband and I were very short of money but now we are more comfortable financially.   But it's difficult to change the habit of of scrimping and scraping all the time.

I use some of our SDP money to pay cleaning and gardening firms do the heavier jobs that we can't manage anymore.  I've also bought other things to make our lives more comfortable.