How much money can I have before it affects my benefits?

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lightbeing | 14:17 Wed 30th Apr 2008 | Body & Soul
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I am on DLA on the highest rate for spastic paraplegia, I get housing and council tax benefit and income support, along with SDA. I am married, and he is my carer. How much money can we legally have in our accounts and do we have to pay tax to the Inland Revenue.

For example, say I was to win �10,000, and wanted to put pay off a loan payment with half of the money, would I have to declare the rest?


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You would have to declare the �10,000. You are allowed capital of �6000 before your means tested benefits are affected.

The fact that you used the money to pay off your debts is neither here nor there. In effect, it would be the government paying off your debt in the long run, do you see?
except i dont think dla is a means tested benefit. Income support and housing are though
Question Author
I haven't got the money, as it is hypothetical, but I am wondering how it would affect my income support, housing, benefit, council tax benefit, and would I have to declare it to the Inland Revenue, and DWP?

I just know people who win money, who are on benefits and wonder how much they are entitled to keep, before it affects any of their allowances.
Do you remember that woman on big benefits - lots of kids -did WifeSwap?

She posed topless for a paper and got money - she gave it to charity. She was subsequented prosecuted for not declaring the income.

Found the link:

Sorry for reviving nightmares. :)
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I was told my husband and I can have �6,000 before it affects our income support, housing and council tax benefits. However, I don't know if the rules have changed, or if we are entitled to have a bit more.
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I get DLA for life due to my condition and illness. The other reason, I am wondering is because with the costs of funerals today, we need to be able to make provisions for each other in the event of one of us dying.

I think we should be allowed to have more money behind us before it interferes with our income support and such-like as our income falls below the minimum wage. My husband is ten years off his pension, and I am 20 years off of mine, but if anything happens to me, he wouldn't be able to get benefits for at least 6-8 weeks putting him into arrears, as his carer's allowance would stop and my benefits would be stopped.

So how much can we have each year before it affects our income support and housing/council benefits?

Also, with the rate of inflation, our income at present is struggling. I was told by an agency that by rights we should be spending �200 a month on food for the both of us. We spend only half of that each month, and my husband is now growing fresh veg in pots to help us save some money.

I am one person, who if I was well would be at work in a heartbeat. Although I was entitled to benefit when I became ill, I was reluctant to go on it. Now that I am on it, I want to do what is right, to keep from falling into financial hardship, as any affects on my benefits would put more stress on me.
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I only get with my husband's carer's allowance a little over �12,000 a year and was told that we are are allowed �6,000 savings. I find it really confusing.

Also, when we took out a loan for �8,000 to help consolidate our debts, they didn't worry about the odd �2,000 we had left over after we settled our debts.

The woman in the link is able-bodied and earns more on benefits per annum than I do as a disabled individual. I wouldn't want to be accused of fraud. It is nerve-wrecking, as you don't know exactly what you are allowed to have or not. When you are in the benefit system you are under restrictions, you even have to let them know when family, or friends come for a visit and stay for a few days, where if you have your own home, or working you aren't subjected to the the same scrutiny
The problem is, lightbeing, as you are aware the government has no money. It is taxpayer's money and it has to be spread out fairly.

Some would see it as grossly unfair that a person on means tested benefits because they are too poor to meet the day to day living expenses has a nest egg of several thousand pounds whilst others are working hard just to pay the debts and may have less spare cash than you.

I provided the link only to demonstrate that all cash must be declared, no matter how it is spent.

Don't worry about the funeral costs, for heavens' sake. There are funeral grants for people on means tested benefits.
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Thanks Ethel

I have checked to verify what you said. I was just wondering how it works in cases of inheritance and say somebody winning on the lottery. I haven't won any money, but it is good to know where I stand, should it ever happen.

The last thing I would want to do is break the law, hence I posted the question. Also, it will aid others who come into money to know where they stand.

I hate being disabled, as being on benefit is so restricting. If I could go back to work, I would. I use to be a taxpayer and would work 12 hours a day to make ends meet.

It is always good for people to know where they stand legally, especially those of us on benefits.

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