My daughter lives in supported living in a Mencap residence. She recently had her benefits stopped as she had too much money in the Bank! Does anyone know how much a person is allowed to have before supported living benefit is stopped. Unfortunately I am unaware of what benefits she receives and no-one is allowed to tell me!
Supported living housing benefit: My daughter lives... - Mencap
Generally when your on benefits your allowed £6000 in savings. If you have over £6000 and up to the maximum of £16000 your benefits will be reduced by £1 for every £250 you have over the £6000 your allowed. I think If she has more than £16000 benefits will be stopped. Hope this helps.
Surely whoever is responsible for managing your daughter’s bank accounts should be aware of how much money she is allowed to have in order to be eligible for benefits. With proper planning it should be possible to make sure this situation does not arise. You should speak to the managers of the residence and ask them how this situation has arisen and why action was not taken to avoid it. Presumably now your daughter will have to use her savings for a short while until they bare below £16,000 and then reapply for benefits. This is a position nobody would wish to be in, and it is going to keep happening unless someone finds a way of dealing with it.
Exactly, I totally agree. It would appear that no-one is managing the bank accounts otherwise this situation would have been avoided. Unfortunately I (and her father) are getting no response from the manager. COVID is not helping either as everyone seems to have a heavy workload, or so we are led to believe. Thank you, you have confirmed that I am right to pursue this on my daughter’s behalf, even though I keep being told “she has the right to decide” but bless her she doesn’t have a clue what it all means.
My daughter is also in supported living and due to saving has to pay for her full care costs which is around £1400 per month plus rent and council tax, she does receive PIP and ESA. Depending on your daughters saving and costs it shouldn't take the County Council long to clear out her savings.
I opened a personal pension plan for her which she pays in £240 per month and gets £60 tax relief on this as she does not work, making a total monthly saving of £300 which I believe does not get included in any means testing and is not seen as deprivation of assets but once she starts drawing her pension it will be seen as income but hopefully that's a long time off.
Thank you so much, your reply is very helpful. That’s what is worrying me! She has no concept of money, she can recognize coins, notes etc but has no real idea of what they are worth. However, it seems she has no-one who is advising her or helping with budgeting, which I think is very important, it would have avoided this situation for sure. Unfortunately my knowledge of my daughter’s finances, benefits, livings costs etc is very limited as carers are not allowed to discuss it with anyone other than my daughter. I just feel sorry that she will lose her savings through no fault of her own. Do you know the amount of savings allowed or where I can find out please? I think I will probably need to find out who her social worker is (they seem to change so often) and see if they can shed any light on it. Thank you again.
It would appear the amount is £16,000!
£16,000 is the amount your allowed to keep. Any more and they will cut it off.
She should get Esa DLA , why aren’t you allowed to know? Do you have say deputyship ? If she lacks capacity you can apply for deputyship for welfare and finance. Of you have the appointee for her finances. Seems to me it’s what you should do. As this happened meaning her money being mismanaged. If they got her things that she needs should wouldn’t have so much money for this then to happen. Please look in to the possibility of getting the either appointee or legal deputyship so that this does not happen in the future. Also this way you know if your daughter is being really taken care of by her financial affairs and by her social life. Is she getting the food she needs the clothes the shoes the toiletries. I don’t see that being done if they saved up all of her money. You have rights so don’t cake that when they say your not allowed. You are.
Thank you! She has a large caring family and everyone spoils her at Christmas, birthdays etc so I can understand how her bank balance crept up. However, it should have been managed to avoid this. I will certainly look into the appointee or deputyship situation. I really appreciate your advice - thank you.
Yes absolutely understand that. But that is people giving to her. The care provider has a duty not only of care but also of managing finances in a caring way and not allow this to happen.
So suggest also you open a joint bank account in your name and your daughter then ask care provider while you are resolving the appointee and deputyship to ask DWP to put the money in that account also you ask care provider to transfer her money in to this account. Then you keep a card they keep a card and this way you know the money movement and know where the money is being spent. Suggest they pay things via direct debits or in stores instead of using cash. I also would suggest go to her supportive living and check everything she has and needs then you make a list she needs this that and that ask them to wither give you the money to go buy it or you go with them to buy. Then you yourself meanwhile right ti DWP about this situation and tell them that they did not use the money on your daughter and that she needs so much you feel the money was mismanaged, and your daughter at the moment may have that amount but long term she needs those Benefits because it’s how she lives on and that you are going to take over her welfare health and finance
Please contact them and tell them why. Don’t sit on this because when say in a years time she needs her money they will not pay up.
Good luck and let’s us know what happens.
Some very useful replies and suggestions, hope you have some success with the care agency. we have been grappling with the issue of managing finances/benefits etc for years. It is all very well whilst family are still around to oversee things or act as appointees, but our own concern is to who will deal with this longer term. We feel that care providers need to take a more active roll, but have not found them helpful. They do not seem to take this role seriously even if it is part of the care and support plan, and the corporate appointees contracted by local authorities only deal with people who do not have any savings over £6000. Without someone to take over the reins when needed there is a serious risk of the finances of vulnerable people quickly becoming chaotic. Perhaps someone may know of a solution?
Thank you all for your help and advice - you have certainly given me the momentum to sort this out. I too am concerned that my daughter’s care and finances need to be properly organised and in place now whilst myself and her dad are still around - we will not be here forever!
It is another discriminating act against people with LD. Many sufferers like my son do not smoke, drink alcohol, spend money on clubs and clothes yet have the same cut off point as someone who does.
My son does not have the ability to make these choices to indulge himself yet cannot have a bank account that goes over the threshold limit without being penalised.
We were caught out by this a few years ago but are a lot wiser now.
We have Court of Protection deputyship for our son which gives my wife and I full legal control over his finances. It’s a rather tedious process (lots of forms, in triplicate!), but once done it gives you all you need to act. There is a fee for setting it up but this can be waived if the beneficiary does not have the income to pay for it. A judge makes the final decision based on the evidence (as stated on the forms, one of which is completed by the persons GP). It takes a while, but stick with it, because once you have Deputyship you will have the law on your side, which is very powerful if you get any pushback or resistance from anyone.
I am my son’s appointee. I was appointed when he turned 16, he’s now 22. He lives at a residential college and will move onto supported living when he leaves there. I won’t be passing appointee ship onto anyone else. I don’t need deputyship as he has no other assets other than his benefit. As he is funded by Continuing health care he doesn’t have to contribute towards his care fees so keeps all his benefit money. When someone is funded by social care most of their money is used to fund their care. If she’s funded by CHC it wouldn’t take long for the money to build up. My son spends most of his money on clothes and shoes which he goes through at an alarming rate. You’d have to find out who your daughter’s appointee is. When I used to manage a residential care hime years ago, we acted as appointee for many of our residents. We’re you ever her appointee?
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