Savings... And direct payments/benefits

[Burgerman]

I want to save for a new van.
Normally 6k and 16k are the limits before you are into the limits allowed respectively.

UNLESS its saved for a disability related purpose. E.G. A new VW lowered floor drive from wheelchair van at around 75K...

I asked my social worker, who asked the LA and they replied:

Hi

I have a reply which is good news:

‘His charge will still stand, however if he is able to save money from his income and confirms those savings are savings that are placed aside for the purchase of a vehicle we would ensure they are not included in the capital amounts, but this would be reviewed yearly to ensure the money is to be used for this’.

Thanks

[Scooterman]

What about savings ear-marked for an wc accessible adapted property?

Probably not

[Burgerman]

Yes, of course. You do need to ask both benefits and direct payments etc first. But the gov ruled that if its for disability related goods, or mods to a house etc that you should not be penalised and forced to borrow and pay interest.

So it should be possible to save for say a 15k wheelchair, or any housing adaptation that benefits you that is for disability related reason, or a zero rated adapted vehicle, etc.

Also, if you have say 6k savings, and get benefits that are regularly used each month on top, that additional amount is ignored when looking at your savings.

[martin007]

I don't understand what you're saying.
Aren't you free to spend your money?

[Burgerman]

No. I am saying that you can save 70k for a new van for e.g. without losing the money I get for care, and the money the gov give me to pay the bills!

Normally, after 6000 pounds saved, you start to get less help from the government. But as long as you make it known that these savings are for a disability related purpose then it can be disregarded or ignored.

[martin007]

Living on the bank account at 0 is a risky sport.

If you save 10k pounds does the government reduce your care aids?

[Burgerman]

Thats exactly what I was just trying to explain!

[martin007]

I think that it's not logical.

What happens if you you encounter an unexpected expense of 11k pounds?
What happens if you have to do a home reform?

The normal thing would be to link the aid to the level of income.
The system works like this in Spain.

[martin007]

Reflecting on the asuto...

If you save in cash?

[Burgerman]

You could.

[martin007]

You could.

I understand.

[wheelie junkie]

I think that it's not logical.



The normal thing would be to link the aid to the level of income.

Totally illogical, you can be severely disabled as I am, make the effort to work when others pretend to be disabled and others able bodied but too lazy to work live on benefits and I pay income tax to fund them. And even if I didn't work would get virtually no benefits as I was stupid enough to save whilst working. The only way around it being to set up a discretionary trust, put savings in there and appoint close family or friends as trustees. A really screwed up system.

[Scooterman]

Yes, of course. You do need to ask both benefits and direct payments etc first. But the gov ruled that if its for disability related goods, or mods to a house etc that you should not be penalised and forced to borrow and pay interest.

So it should be possible to save for say a 15k wheelchair, or any housing adaptation that benefits you that is for disability related reason, or a zero rated adapted vehicle, etc.

Also, if you have say 6k savings, and get benefits that are regularly used each month on top, that additional amount is ignored when looking at your savings.

Well done BM that's really useful information, I'd have never thought of that.

I will file it away in my brain in case needed/applicable at a later date

[martin007]

I want to ask some questions.

If you have weekly income from the rental of a second home, do you receive social assistance?


I suppose the disability pension will be untouchable...

[Burgerman]

SOme of the benefits that are paid by the gov are means tested. Some are not. And disability benefits are not.

[martin007]

Can you explain it with clear examples?

[Burgerman]

I cant. Its not simple. Everyones case will be different.

[wheelie junkie]

The primary disability benefit is now Personal Independence Payment which has a couple of levels depending upon your disability, this is not means tested.

If you can't work you can claim Employment Support Allowance depending upon your circumstances and National Insurance contribution record this might be means tested. Contribution based is incorrect, I claimed this and despite a 40 year work history the last full working years paying £5k pa just in NI I was "awarded" £73pw I had no choice but to find work.

There are then numerous other benefits which are means/income tested and as BM says they're all individual but if you have a sensible level of savings you won't qualify for any of them. You can easily check out what you might qualify for using one of the many online calculators. Make any attempt to work, receive small pensions or were stupidly saving and you get nothing. I've tried! I need lessons on claiming benefits.

There are some stupid parts, no help paying a mortgage so you go into arrears, sell to a mate who rents it back to you and you will get help paying the rent thus paying his mortgage Totally f'cked up.

[Burgerman]

There are then numerous other benefits which are means/income tested and as BM says they're all individual but if you have a sensible level of savings you won't qualify for any of them.

So dont have savings...
Have gold, art, a couple of antiqie cars/bikes or cash. Or spend it on your property, in all cases so that it gains value.

You can easily check out what you might qualify for using one of the many online calculators. Make any attempt to work, receive small pensions or were stupidly saving and you get nothing. I've tried! I need lessons on claiming benefits.

No just some sense. You are allowed 6 to 16k, or any amount if its for a 70k disabled adapted van, or whatever. MUST BE AGREED.

There are some stupid parts, no help paying a mortgage so you go into arrears,

Thats not true, depends on 1 above...

[wheelie junkie]

A discretionary trust leaves capital rather than assets which are subject to market fluctuations. Cash just decreases in value because of inflation. The problem with a trust is any investment income is heavily taxed so depending upon where invested potentially risky or not keeping pace with inflation.

Claiming savings are exclusively for disability is one way around it, ultimately my savings will be used for the costs of my disability not a specific item

I wasn't aware of any assistance for mortgage payments, I'd be interested in knowing where to go for that. Used savings to pay mortgage off and reduce my overall savings.

There seems to be different savings limits and income limits for different benefits hence using an online benefits calculator. Suppose I could research each and every benefit but would still end up not getting anything.

[Burgerman]

Buy gold. As presents for family etc. Till you have no savings. Or buy antique ferrari or whatever. Or some paintings. Then you are entitled to a lot of things.

[Burgerman]

Prices

https://www.bullionbypost.co.uk/gold-pr ... ice-chart/

By post.

https://www.bullionbypost.co.uk/gold-bars/

Keep it in your house. Or bury it in your garden. melt it into a window sill ornament. Hidden in plain sight. Whatever. Buy a ferrari, etc, anything that is not a bank account!

[Dan]

You could buy £20000 worth of gold today and in five years it might be worth £10000. How would you sell it? Large amounts of cash paid into an account might be flagged up. You might also have to pay Capital Gains Tax, though I think you have a £12000 tax free allowance.
https://www.bullionbypost.co.uk/gold-ba ... e-gold-bar
Then again if anyone wants to buy me a few bars! Umicore 1 Kilo Gold Bar £38,096 delivered.
I notice they only pay £35,420.74 per kilo when buying.

[Burgerman]

You could buy £20000 worth of gold today and in five years it might be worth £10000.

Or 30k. And the general trend is upwards. Plus you can invest in many places and banks. Thet too can go down instead of up. Same with property. Or ANY investment. Thats life.

How would you sell it? Large amounts of cash paid into an account might be flagged up. You might also have to pay Capital Gains Tax, though I think you have a £12000 tax free allowance.

Any high street jewlers, metal exchanges online, privately or via a middle man like the link. Who exist to make a profit.

https://www.bullionbypost.co.uk/gold-ba ... e-gold-bar
Then again if anyone wants to buy me a few bars! Umicore 1 Kilo Gold Bar £38,096 delivered.
I notice they only pay £35,420.74 per kilo when buying.

As I said, as a middle man, they exist to make profit. Sell to a buyer directly. Or whoever offers the best price.

Try bitcoin. I mad a HUGE profit in 2 months!