income support and savings

[homerbart]

How much can one have in savings if you are single parent and on Income Support with a 17 year old son still at school.

[Ethel]

It's the same for everyone

* People with savings over �16,000 cannot get Income Support
* People with savings of �6,000 to �16,000 will get reduced benefit

[homerbart]

thanks ethel - you know this is not about me - cos I am a retired woman - but my sister's neighbour has said she got a letter saying that Income Support through ways and means were able to tap into her bank account and find out what she had in savings and she has too much savings. Would that be true. thanks again for any answers. by the way if you are pensioner can you have savings - if so - how much.

[Ethel]

It could be true in a round about way - as you know savings are taxable, and the tax is paid directly to the tax man by the banks and building societies.

Would one government agency (tax man) share information with another (benefits)?


I am a pensioner with savings. Hurrah! I pay income tax on my pensions and my savings - booh! - because my income is above the tax threshold. The savings do not affect my pensions in any way because I do not receive means tested benefits.

However, I belive the same figures apply to pensioners' on means tested benefits as I gave in the previous answer - anything over �6k and you are penalised.

I could be wrong and should hate for anybody to miss out on anything if I am - I suggest you call The Pension Service on 0845 60 60 625 for clarification.

Although why government and council bodies insist on using those dratted 0845 numbers is beyond me - another of my favourite rants.

[homerbart]

thanks Ethel - you seem to know your stuff. I can't ring that number for any info as I am partially deaf and get stressed on the phone.

Anyway my sister's pension (so she says) is made up of income support - she received income support nearly all her working life as she worked at probably ****** jobs - minding children, I guess what she is saying she did not pay a stamp or a frank.

Frankly I dont understand it myself - as I was in full-time in the Silly Service for 37 years so all my business was honest and fully paid up.

What savings would she be allowed. thanks for your answer

[Ethel]

Your sister is allowed up to �6000 before being penalised.

I know exactly what you mean about using the phone - I am in the same boat. It is horrendously frustrating that my local office has closed down and there is no way of talking to officials face to face.

[homerbart]

thanks for that Ethel - that will be okay cos she does not have that kind of money.

[homerbart]

Ethel - I myself have a fair amount of savings to me anyway. I get a private pension and also incapacity benefit.

Can I have as much savings as I want.

[Ethel]

Homer, yes you can.

As long as you are not in receipt of any means tested benefits you are fine,

The Incapacity Benefit is subject to income tax, so they should know about your private pension. The IB can also be reduced if your pension is above a certain limit - but they will know about that and it should be automatic.

But savings don't affect your IB or your pension.

[homerbart]

thanks for that Ethel - I am surmising you have been a solicitor or something like that - perhaps retired. Anyway you are good!!!!

With having so much knowledge - would you not consider working voluntarily in a CAB - you would be a great asset

[THECORBYLOON]

The private pension has to be declared on the claim form and then we write to folk each year so the new rate can be taken into account if appropriate.