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Original poster

Saving whilst on benefits

29 replies

speedymama · 03/11/2006 14:26

This is not about people who claim benefits, just an observation about the system.

Just listened to the Jeremy Vine show and they were discussing savings. A woman called in and wanted to know if there was a way she could save more of her benefits without being penalised. She was self-employed, claimed working tax credits, housing and council tax benefits.

My first thought was if she is able to save considerable amounts of her benefits, why did she need housing and council tax benefits? From my perspective, the benefit system should be there for those who would be in dire straits without it. For example, my DB is currently looking for work after being made redundant from his company but because the company was insolvent, he received less than ?5k for 25 years service. He has 4 children aged between 2 and 10 and this is the first time he has ever been out of work.

Obviously I do not know the caller's circumstance but I can understand how it annoys people who, because they earn a certain amount, do not qualify for help, have to struggle to pay their rent or mortgage out of their earnings which are taxed and are unable to save.

OP posts:
eefs · 03/11/2006 14:33

I think there is an element of being on benefits that, because it prevents any savings being built up people are trapped in the benefits system. For example - being unable to build up a deposit to rent/move, being unable to take further training because of a lack of buffer.

iPodthereforiPoor · 03/11/2006 14:34

I'd also be interested to know how she does it!!!
I get IS, CTC and CB - I don't get the housing and council tax because I live with my parents. I've been permanantly overdrawn since last october and have been struggling to reduce it each month. I manage to save £5 a month but even that seems like a luxury sometimes.

Considering that benefits are worked on on the bare minimum the Gov. feels you could live on how can there ever be any surplus for saving for a rainy day?

Original poster
speedymama · 03/11/2006 14:47

She was aiming to save a £1000 for Christmas and wanted to know the best way to do it without it affecting her benefits.

OP posts:
berrycherry · 03/11/2006 14:48

I was listening to this and imo it is wrong to be able to save the sort of money this woman was talking about whilst on benefits. It seems she was on pretty much every benefit going, apart from unemplyment, because she is self employed. I must admit i was wondering what sort of work she did, and wondering if it had a large cash element which she did not declre as it would effect her benefits??

well, I will carry on paying my taxes and getting nothing just so she can put money by..

misdee · 03/11/2006 14:51

if some lives frugally and can cut dosts elsewhere, why cant they save even if they are on benefits? they will still have the same emergencyies as anyone else (car breaking down, kitchen appliance needs replacing etc), and if they can do that then why not?

i manage to put money away for the kids each week. they are richer than me .

iPodthereforiPoor · 03/11/2006 14:57

there's frugal and there's saving £1000 for christmas!

berrycherry · 03/11/2006 15:00

absolutely ipod!

I think her books need investigating

misdee · 03/11/2006 15:00

i could save £1000 for xmas 2008 if i started now

Original poster
speedymama · 03/11/2006 15:03

I do not have an issue with putting money aside for emergencies. Christmas is not an emergency imo and credit to Martin Lewis for actually saying that benefits are suppose to be there for people who really need it(she became very defensive about it).

Berrycherry, I think a lot of listeners, including me, thought exactly the same as you.

OP posts:
winnie · 03/11/2006 15:09

I agree with misdee. If someone saves by living extremely frugally (which they'd have to do on benefits) I would not begrudge them their savings.

Christmas might be seen as a luxury but it is something one can hardly opt out of in this country. Good for her if she managed to save 1k.

winnie · 03/11/2006 15:10

My advice to the woman aould have been use a credit union.

Having 1K does not stop entitlement to benefits.

berrycherry · 03/11/2006 15:17

she is not just on benefits - she is "self employed"

I know there is no way you can save £1000 for xmas if just on benefits

I agreed with bMarin Lewis when he said that benefits are there for people who really need them, and are not for saving, but for paying for required living expenses

there was something fishy in her story

iPodthereforiPoor · 03/11/2006 15:36

This reply has been deleted

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iPodthereforiPoor · 03/11/2006 15:39

I suppose once you recieve your benefits money it is up to you what you do with it!!!! Doesn't bother some people I know of just to spend it on designer gear, not pay any council tax and then emigrate -you know who you are!!!

iPodthereforiPoor · 03/11/2006 16:00

I wonder if she mumsnets - (it is a verb isn't it???!!!!)

iPodthereforiPoor · 03/11/2006 16:01

thats killed it....

nutcracker · 03/11/2006 16:03

Well I can't save any so I'd like to know her secret.

I am on Housing benefit, and Income support and obviously get CTC and CB too and I cannot afford to save anything at all.

LittleSarah · 03/11/2006 16:09

Well I am a student and get housing benefit. I save £10 a month, for emergencies I guess, or for a cheap holiday in a few years if I don't use it by then... certainly couldn't afford to save £1000 by Christmas, not that I would spend that much anyway!

nailpolish · 03/11/2006 16:13

my mum runs a credit union (voluntarily)

she set it up after seeing many many ordinary people struggling when their washing machine broke down etc and they were unable to get credit

what happens is they save a little each week, and they can also borrow

you need a lot of people for it to work, obv

she is very proud of how it has worked out, a lot of people are benefitting

there are usually credit unions in every big city or town

hth

misdee · 03/11/2006 16:15

np, for the last few years i have had to put items on credit in my dads name, as i cant get much credit in my own name anymore. its very annoying.

nailpolish · 03/11/2006 16:16

misdee i bet there is a credit union near you

they charge just the same as any other credit

and you get interest on savings too

misdee · 03/11/2006 16:19

i will look into it. thanks.

i kow there was one in stevenage years ago, not sure if one if welwyn.

nailpolish · 03/11/2006 16:21

er i know theres one in hatfield

i have no idea if that is near you!

i know cos i help mum out with paperwork, thats all

misdee · 03/11/2006 16:21

sounds about right one being in hatfield

nailpolish · 03/11/2006 16:22

i know nothing aobut hatfield