Does owning a static caravan affect social benefits?

Question

A friend of mine is in receipt of DLA, Incapacity Benefit, Housing Ben and Council Tax Ben. He's nearly a pensioner and wants to buy static caravan, just to go visit a few times a year but not hire it out. How does he stand with his benefits? Does he have to notify them and is he likely to lose any of his benefits if he goes ahead with it? Thanks

Answer 1

What a fantastically well timed question ! There was a Social Security Commissioner's decision released on this today. They set the relevant case law that has to be followed by councils and the DWP when looking at such situations. The case was R(H) 7/08, I read it only this morning.

The answer is no it is not capital. It is a personal possession, only land and assets that  generate revenue are capital. As long as he doesn't rent it out it is a personal possession

The only thing of note is that you can not dispose of capital in order to continue to claim benefits (as suggested by the first answer), this is called deprivation of capital. So if he has say 38,000 grand in the bank it should have been declared, he can't buy a 24,000 grand caravan and then only declare 14,000 grand.

Lastly DLA and Incapacity are never affected by capital anyway as they are not means tested benefits. Make sure your friend claims Pension Credit when he turns 60, get a benefit check at CAB as he may get more money.

Answer 2

Any savings over £8000 affects his benifits, like pension credit etc. The trick is to spend it---enjoy the fruits of his labour.

Good luck

Answer 3

if he has got enough to buy a caravan then we are paying him to much benefits, We pay enough money to live on, Not to Save so there is something going on there.

if he has got enough to buy it then he is committing benefit fraud the law says any saving over £2000 must be declared. (not £8000 as one answer says)

Answer 4

He`ll only lose benefits if he rents out the caravan