Hi my husband has just had £3,500.00 back payment on our joint claim It has taken us over the £6k by quite a margin We are on Income related ESA I have had conflicting information about how it effects our benefits Some say under £5k we have a year to spend it Others say its not counted Does anyone know please
Backdated PIP payment is ignored for one year, after which it will be classed as capital.
If you have savings under £6k then any means tested benefits will not be affected.
Most means-tested benefits are only paid to people with less than £16,000 in savings (tax credits and the guarantee element of Pension Credit are not affected by this rule).
If you (and your partner) are under Pension Credit age and have total capital over £6,000 then the government assumes you receive £1 per week for every £250 of capital you have above £6,000.
If you are over Pension Credit age the government assumes you receive £1 per week for every £500 of capital you have above £10,000.
Gary
Nothing on this board constitutes legal advice - always consult a professional about specific problems
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