ADVICE ON SAVINGS

Hi

This is my first post so please be gentle.

I have recently opened a case for a client who has accrued an o/p for IS, HB and CTB all due to excessive capital.  I am assisting in all the appeals.

Capital is comprised of;
1. Money accumulated from Maintenance Payments (10k)
2. Money accumulated from CB (14k)
3. Money from a friend (5k)

Maintenance Payments
Having done the research (IS and HB Regs) I have had difficulty in finding anything to assist in reducing the level of capital from MP.

My query involves capital accrued from Maintenance Payments insofar that a few years ago maintenance payments were disregarded as income for the purposes of calculating applicable amount of IS.  Therefore can accrued maintenance payment be disregarded? alternatively, can this can money be attributed to the child and therefore be disregarded as child capital?

Child Benefit
I anticipate there being no grounds for disregarding this capital given this is simple accumulation of capital paid the the cl. However, should anyone have any recollection of case law which allowed capital to be accrued in this way and be disregarded that would greatly assist.

Friend
This can be argued under beneficial ownership principles and I should be able to mangage this one.

I was hoping to get as close to 16k as possible to hopefully get benefit entitlement reinstated.

Any help would be much appreciated.

With regard to the child maintenance you might find some ideas here.

http://www.rightsnet.org.uk/forums/viewthread/1709/

Thanks Nevip, I’ve had a read at link, but still abit of a loss as to maintenance payments.

I’ve searched through CPAG handbook and a range of other sources but cannot find anything which specifically deals with MP capital accrued over time.

hi

i can’t find anything on maintenance specifically but think that R(IS)9/08 might be relevant -

http://www.osscsc.gov.uk/Aspx/view.aspx?id=2407

case involved capital from accrued income paid to foster carer by local authority for foster child.

although the income was ignored for IS purposes, it became capital at the end of the period it was paid for.

judge also considers whether capital was held on trust for child before deciding it wasn’t as there was nothing in arrangement with LA to stop claimant from spending money as she wished.

cheers ros

Thanks for the case Ros

I have read the case and it suggests that accrued benefit income eventually becomes capital. 

I think it may be worthwhile going to Tribunal and raising the issue specifically in relation to maintenance payments. 

I have another ongoing case which involves accumulation of Adoption Allowance, fortunately under the IS Regs Sch 10 AA is disregarded as capital indefinitely.  I just wish the issue in respect of maintenance payments was as simple.