Savings whilst on social welfare

Hi there , I have a question about saving money whilst in receipt of social welfare , I try to save money as much as possible each year maybe 2-2.5 k depending on my outgoings and bills but recently I’m being investigated by the social welfare to see do I still meet all the necessary criteria to avail of said payment. I made some lodgements to my bank account which was from my cash savings at home after a holiday to Scotland and they are asking where the money came from after telling them it was cash I’d saved at home they are now threatening to cut my payment off because I didn’t declare said savings…. I didn’t know I had to tell them about any cash I managed to save at home? Has anyone else been in this situation ? I’m worried I’m going to be prosecuted for benefit fraud now

Any use?

Hi , I’ve read that , but I’ve been saving for 4 - 5 years now and had savings up to 7.5 k which have since been spent on 2 holidays in 2 years and household bills etc …. I no longer have the cash but there were a series of lodgements made for said holidays

Zoybells said:

Hi , I’ve read that , but I’ve been saving for 4 - 5 years now and had savings up to 7.5 k which have since been spent on 2 holidays in 2 years and household bills etc …. I no longer have the cash but there were a series of lodgements made for said holidays

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I suppose you kept the saved money always at home in a jar or so? That might be a problem now- the DoSP might suspect you had some secret income you never told them about.
Try to talk to them and tell them the way you kept the money. By law you are entitled to have up to Euro 20000 in savings when you are on a means tested payment like JA. You are not obliged to keep that money on a bank account. But you are obliged to make a full statement when the DoSP does a means test on you.
You might get away with this if they believe your story.

I did exactly kept it in my home and spent it as needed when I had car trouble or again wanted to go on a holiday with my kids , I just recently had to furnish the inspector with a years bank statements which clearly shows lodgements I made into my account to pay for whatever bills or holiday I went on ….. nothing exceeding the amount mentioned above …. I did hear that you were allowed up to 20k before it was means tested but I never had any savings prior to my initial claim , it’s only in recent years I’m managing my money a little better and saving at home ….

Zoybells said:

I did exactly kept it in my home and spent it as needed when I had car trouble or again wanted to go on a holiday with my kids , I just recently had to furnish the inspector with a years bank statements which clearly shows lodgements I made into my account to pay for whatever bills or holiday I went on ….. nothing exceeding the amount mentioned above …. I did hear that you were allowed up to 20k before it was means tested but I never had any savings prior to my initial claim , it’s only in recent years I’m managing my money a little better and saving at home ….

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I did the same when I was in that situation. But I never lodged any of the saved money on an account before paying a bill. I made sure first I can pay in cash- that leaves no trace and does not provoke any questions!

I know it definitely stupid on my part but bills be paid I’m sick thinking about it , can’t sleep or anything

If you are genuine and not deliberately hiding a source of income, then they will understand that.

They are very unlikely to prosecute you for benefit fraud if you are honest.

But I would say that their first assumption is that someone who has €7,500 cash earned it in nixers.

Brendan

No I know but my source of income is the welfare and my maintence and child benefit , I don’t have a job or any trade to earn other moneys through nixers …. Rock and a hard place

As long as it's all declared, you are fine.

Brendan

Zoybells said:

No I know but my source of income is the welfare and my maintence and child benefit , I don’t have a job or any trade to earn other moneys through nixers …. Rock and a hard place

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I don't think they will punish you for being frugal. However, if it keeps accumulating and you reach the 20k threshold it will become a problem, so make sure that doesn't happen.
If they suspect an undeclared income stream, they still have to prove that .
I suppose you could tell them you won it at Punchestown races. If it was good enough for our former Taoiseach and Finance Minster, it should be good enough for you.

It should be easy to count if that 7.5k makes sense. So you can prove them (or not), that it's all from your income.