Could Changes in Benefit Rules Benefit You?

The rules for Income Support and income based Jobseekers Allowance state that if you have over a certain amount of savings (Capital) you are not entitled to any benefit.  However, for the first time in 25 years (for most people) the amount of savings you are allowed has increased from 8,000 (12,000 if you are over 60) to 16,000.  An additional change is that previously if you had savings of over 3,000 this affected the amount of Income Support you received.  This savings limit has increased to 6,000.

How might this affect you, or someone you know?

Under 60s:

If you have savings of between 3,000 and 6,000 and are in receipt of Income support you will no longer have money deducted off your benefit because of your savings. 

Most importantly: Anyone who applied for Income Support but was refused because they had savings of over ?8,000 (although their savings are under ?16,000) will now be entitled to Income Support.

Over 60s

Over 60s have always had the option of claiming Pension Credit which had more generous rules and so are less likely to be affected.  The rules for people living in Care Homes are also different.

If you would like further advice please do not hesitate to contact one of our advisors.

updated 22.5.06