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social security benefit rules and winning cash competitions (not the lottery)

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shikiraclare | 02:38 Wed 03rd Nov 2010 | Business & Finance
3 Answers
Currently I am in receipt of Incapacity benefit and middle rate Disability Living Allowance.

I don't play the lottery as many people do (regardless of income type) but I do enter into crossword competitions and Television competitions and other random cash prize draws
on a regular weekly and monthly basis.

There doesn't appear to be any written evidence the Department of Social Security provide to state what the rules are regarding cash winnings and, although I do enter them, I haven't actually won anything to date. I do know that you are allowed an amount of around £16000 savings on most benefits, but would cash winnings of the same of less amount be considered as savings or something entirely illegal?

Personally, I think that if I were to win a cash prize of say, £2000, that this should not affect my benefits when people are allowed savings of up to £16000 or more. The money would be used for corrective eye surgery I desperately need and/or clearing some debts, so would not be used on material objects or expensive holidays etc.

Does anyone have any idea what the rules are surrounding cash prize winnings and benefits and if so, what has been their experience?
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A 'one-off'' cash prize of £2000 would not be seen as regular income but would be considered to have affected your level of savings. If you are sern to be disposing of savings in order to keep your savings below £16000 then questions could be asked. Spending it on an eye operation or clearing debts would probably be acceptable. If you have savings approaching £16000 though perhaps you should be using them to clear debts anyway.
Disability Living Allowance is not means tested.

I agree entirely with Factor30's answer
Neither DLA not Incapacity Benefit is means tested, so income and savings have no effect on them.

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