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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

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Original poster

Can I ask a quick benefits question if anyone can help?

51 replies

NotUmbongoUnchained · 11/03/2018 19:46

A family member has sadly passed and some inheritance is being split between us all, 10K each. My little sister is currently a student and claiming housing benefit and child tax credit.
Does anyone know how this will effect her or if it is under the threshold of the savings limit. I have looked on google but it mainly seems to be advice for pensioners and the benefits calculator doesn’t work for students. She would like to save the 10K into an account to save for a deposit on a house ideally for her and her daughter for a bit of security while she is studying.
Any advice would be much appreciated as she is stressing a bit about it and what to do. Thankyou.

OP posts:

Me2you · 11/03/2018 21:56

Could you save it in an account of its for her ? And give it her when she needs/Wants it
It doesn't go far these days.

Uniglo18 · 11/03/2018 22:00

Can she split it to £5k for herself & £5k for her dc and put it in premium bonds? She hopefully won't be taxed for splitting it like that.

Auspiciouspanda · 11/03/2018 22:05

It’s £16 added to her total income per week. So if her income is under her applicable amount by more then £16 it won’t make any different to her Housing Benefit.

It’s also 65% of the amount over the applicable amount that is used to reduce Housing Benefit so depends on her income and applicable amount really.

I’m a housing benefit assessor btw.

Also being gifted 10k then deciding to give it to your children - not allowed under HB regs and you will be treated as still having it.

Being gifted 10k then deciding to buy expensive wine and art (?) to then resell - not allowed under HB regs and you will be treated as still having it.

Buying ‘normal’ things with capital like a car, or a house or paying down debt it allowed under HB regs.

MyDcAreMarvel · 11/03/2018 22:11

It’s £16 added to her total income per week. So if her income is under her applicable amount by more then £16 it won’t make any different to her Housing Benefit.
No it's savings not income .

MyDcAreMarvel · 11/03/2018 22:12

Ignore me, yes you are right it's £16 savings added as income.

Jon66 · 11/03/2018 22:12

Springiscoming you are wrong. I wish people wouldn't answer questions on benefits without checking they are giving the correct answer. The capital limit for working age claimants for housing benefit is 16k. For every 250 pounds over 6k you lose 1 pound from your benefit.

Original poster

NotUmbongoUnchained · 11/03/2018 22:38

Thankyou for the advice. I’m hoping she will splash a bit of it on herself, as in a car and a well deserved holiday then hopefully the rest she can keep. I will get her to phone CAB in the morning.

OP posts:

HiggeldyPigsinblankets · 11/03/2018 22:42

can she put some into a savings account for her child/children

bimbobaggins · 11/03/2018 22:47

voice it might be a lot for some people but she’ll have the £10k inheritance so hopefully be manageable for her

Original poster

NotUmbongoUnchained · 11/03/2018 22:47

If it comes to it I’ll just have it in my account and transfer whatever she needs as and when she needs it. How would anyone possibly know.

OP posts:

Forevertired19 · 11/03/2018 22:55

We're told over 6k it affects benefits.

Springiscoming123 · 11/03/2018 23:08

what are you talking about ??that was my response to a poster with invalid info

AgnesBrownsCat · 12/03/2018 08:27

She should just declare it and use it to top up her rent if her housing benefit is reduced .
Or of course you could hide it for her and encourage a holiday so the tax payers can keep paying her rent.

pinkyredrose · 12/03/2018 09:05

Chip on your shoulder Agnes ?

CazY777 · 12/03/2018 12:03

We were claiming housing benefit when DH came into quite a large inheritance, which we planned to use for a deposit for a house. I told the housing benefit office, fully expecting to completely loose the housing benefit, but I also told them what we planned to use it for. They let us carry on getting the benefit for 6 months as long as we tied the money up in a bond. We didn't touch a penny of the money, and managed to get a house by the end of the 6 months (we did have to move out of the south east to do it). I had to show them that we had used the money for that, and then they carried on paying the housing benefit after the 6 months were up, up until the completion date! I was very surprised by this to be honest, but I suppose it's beneficial in the long run as we don't need housing benefit now. I don't know if every council do this or if they would do it for a smaller amount.

HollyBayTree · 12/03/2018 12:07

MN maks me laugh!

She could invest it buying art, antiques or wine?

SurlyValentine · 12/03/2018 12:22

@CazY777 HB regs say that capital intended to be used in the purchase of a property can be disregarded for up to six months. Sorry if you were feeling like you'd had special treatment! {grin]

Premium Bonds are classed as capital, so splitting it between PBs and savings would still have the same net effect.

OP Be careful about holding the capital for your DSis and transferring it to her as and when she asks for it. If she is asked to provide bank statements in connection with her HB claim and transfers are seen going into her account, she will be asked about them. if you're going to do this, it would be better to withdraw the money in cash and then give it your DSis.

Original poster

NotUmbongoUnchained · 12/03/2018 13:00

Tbh I think by the time she’s got herself a car and transferred a few grand into her daughters account she might have a low enough amount left that she’ll be ok and she will be able to get through uni fairly comfortably

OP posts:

pinkyredrose · 12/03/2018 13:07

Holly why was that so funny? You do know that some people make an awful lot of money investing that way, particularly in art.

UpstartCrow · 12/03/2018 13:08

darkriver198868 has given you the right advice, anything over £6,000 leads to a reduction and the cut off point is £16,000.

Lets assume she has no savings, and the problem is the 'surplus' £4,000.
If you hold it for her, its fraud. If she transfers some to her children they could treat that as her trying to hide it. The same applies if she invests it.

If she spends £4,000 on essential items, that's allowed. That would be things like white goods, beds, mattresses, carpets, essential clothing, decorating, curtains.
She should take before and after photos to prove she really needs the items, and keep all the receipts.

couldnteatawholeone · 12/03/2018 13:12

Dear OO. Please do listen to the housing bens adviser.
I used to be a benefits specialist and did a lot of court and tribunal work. It really isn't simple as £16 per week affect. Hiding the money is fraud. Trust me. Get her to a speciliast. Or there is a chance your sister will end up being one of my clients who have acted in a way that makes sense to them but sense and legislation are not the same!!!

Original poster

NotUmbongoUnchained · 12/03/2018 13:14

Thankyou for all the advice I will think about. I think I’ve thought of a possible solution that would keep her name in the clear but will have to see. Just want to give her a fighting chance of turning her life around.

OP posts:

CazY777 · 12/03/2018 13:19

@SurlyValentine, I did feel special especially after they paid it for more than 6 months and sent us a nice letter saying how pleased they were that we found a house, but maybe they do that for everyone 😀

abigailsnan · 12/03/2018 13:22

Be very careful where you deposit any funds over the £6k thresh hold,remember that the solicitor who is dealing with the matter will have to inform Inland Revenue where he/she has disbursed the funds to and they will chase it up if benefit rules are broken

Original poster

NotUmbongoUnchained · 12/03/2018 13:25

It’s not going via a solicitor. It’s going to grandparents, who have decided to then share some of it out between all of us.
I was thinking he could write her cheque to me, I can put it in one of my accounts and just give her my card to use. Her name and account won’t be involved in anything.

OP posts:

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