Sorry, I can't resist this any longer!
Capital up to £3000 is ignored completely, but from £3001 an income from those savings is assumed at the rate of £1 a week for every £250 (or part of )up to £8000. eg savings of £5000 would attract a tariff income of £8 a week and savings of £5110 would have a tariff income of £9 a week, and so on.Once savings go over £8000 entiltlement to benefit ceases. For people in residential or nursing homes the levels are £10,000 and £16,000.Pension credit is a nightmare so I won't even go there!
Where there are children in the 'assessment unit'(family to you and me)their savings are ignored up to £3000 but they are excluded from the assessment once those savings go over £3k.Trust funds would be looked at to see if they could be ignored.Child tax credit has changed things but £3000 holds good for those cases where children are still included.
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