how much is he allowed

[northboy]

my friend has just sold his house,50/50 with his wife.
he is on in capacity benefit.
how much is he allowed to have in his bank account before they stop his benefits.
***hope this is in the right topics***

[Ethel]

Incapacity benefit is not means tested so he could have millions in the bank and still be entitled to it.

Other benefits may be means tested though - the usual rule is over �16000, no means tested benefits will be paid, and a sliding scale for lesser amounts.

[pusspuss]

if he is on incapacity benefit he had better check with his local CAB as if he has savings it WILL effect what he gets paid.

[pusspuss]

my friend has had to pack in work and go on incapacity benefit he has worked for the past 43 years and never claimed a penny. he gets just over �600 a month private pension and because he has saved up some money he is expected to you use some of his savings.he gets just over �20 a month of the dhss.he has been to see his local cab and they are looking into his case.for someone who has never claimed a penny of the state it came as one big shock........

[northboy]

my friend also worked for 30 years,and never claimed a penny.
he suffered an injury at work..hence the in capacity.
while living with his now ex wife,all he received was �160 a fortnight.
he has not touched his pension as he has put that to one side for his 2 children.
his friends & family were giving him different quotes of what he could and could not have his bank account.

[Ethel]

As I have already said, you receive full incapacity benefit even if you are a millionaire.

"Both SDA and IB are paid regardless of capital, and people receiving them may be allowed to do some work and receive some earnings in addition to their benefits."

http://www.rethink.org/living_with_mental_illn ess/money_debt_mental_health_problems/benefits /index.html

INCAPACITY BENEFIT WILL NOT BE STOPPED BECAUSE HE HAS A LOT OF MONEY.

[Ethel]

�160 a fortnight is right for incapacity benefit.

Why isn't he using his pension? That's what it's there for - he can't expect the taxpayer to inflate his income because he doesn't want to spend what he has.

He will still get the IB even with his pension - so tell him to use it.

[factor-fiction]

Ethel, maybe he is waiting, perhaps until age 65, before drawing his pension, because his pension scheme may impose hefty actuarial reductions. However I agree with you that putting it "to one side for his 2 children" seems odd. It may be that he knows that the IB may be reduced if his pension is too high

[Ethel]

His IB will not be reduced however much income or capital he has - althouh it may be subjected to income tax.

[factor-fiction]

Ethel, You may be right, but I was just going off the following in the link you provided:

"Incapacity Benefit can be claimed if you:

*Have paid sufficient national insurance contributions
*Are accepted as incapable of work
*Do not have too much income from a pension or occupational pension or some types of health insurance
*Are under pension age (60 for women; 65 for men)
*Have no entitlement to statutory sick pay"

I interpret the statement " if you don't have too much income from a pension or occupational pension...." as meaning that having a pension could affect one's entitlement to ICB.

[THECORBYLOON]

northboy, I work for Jobcentre Plus and have worked on the section awarding Incapacity Benefit (IB.)

If IB is the only benefit in payment, savings will not affect entitlement. If there is a Pension Income above �85 a week, the IB will be reduced by 50p for every �1 above that amount (there are exceptions to this general rule but I'll not go into them.)

The deductions apply only to new claims for IB since 6.4.01 which do not link to claims prior to that date.

You can tell yir pal he has nothing to worry about as long as IB is the only benefit in payment.