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Claiming benefits and saving advice

2 replies

username30593 · 26/06/2020 12:52

DH has just been made redundant he has received £20000. I have never had to claim benefits so don't really understand. I have read that having over £16000 means we won't be entitled to any. So I assume we would have to spend our savings until we go under this and then claim.
My issue is we do have some debts and need a car. DH car was on contract hire and fortunately finishes this month as I do not want to be paying £300 a month right now for a car. I don't have a car so we soon will not have a car at all. I thought we would just get a cheapish run around. Also we owe about £1000 on credit card which I thought would be sensible to pay off. Doing these two things I thought would probably take us under £16000. However I have read that this may look like we are purposely trying to get rid of our assets and still not be able claim. Does anyone know if this is correct? I am not trying to do anything wrong. My hope is DH finds another job very soon so we don't have to claim but with the current situation I'm not hopeful.

OP posts:
40somethingJBJ · 26/06/2020 12:56

I think they’ll ask what the money has been spent on - if it’s holidays and expensive handbags then they may see this as deliberately depleting savings, however I can’t imagine paying debts off and buying a cheap car would be seen as frivolous.

BluntAndToThePoint · 26/06/2020 13:02

This explains how they will treat the rest of your savings and how it will impact what you would receive from them.
www.turn2us.org.uk/Benefit-guides/Universal-Credit-income-and-capital/Capital-Savings

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