09 Mar 2015

A question about : Do I have to declare compensation if claiming HB?

I have been recieving HB and in Jan of this year I received just over Ј7,000 in compensation. I looked on the direct.gov website and it said people were entitled to HB up to savings of Ј16,000. DWP are now saying that they want around Ј2,000 off me for not declaring this and also for not declaring some dormant bank accounts i have but have not used in years! I cannot find anything about declaring one off compensation payments.

Best answers:

  • Saving upto Ј16000 are ok but anything over Ј6000 will reduce the amount you are entitled to by Ј1 for every Ј250 so for every Ј1000 you have over the Ј6000 your benefit will reduce by Ј4/week.
  • To be honest you will get quicker and better responses by posting this on the Benefits and Tax Credits board.
  • Hello k.c. ryan
    This link will explain the capital rules but the rules say that you can claim if you have less than Ј16,000 but there is a sliding scale called tarrff income which means that over a certain level dependant on your age is deducted from your entitlement
    You need to let benefits know of all your income and although some may be disregarded it is better to give all the information and then you will not have to risk prosecution.