money in the bank

[d051153]

I need some help. My mum and Dad never had anything when they were younger and worked all thier lives. Now they are in there late seventies and getting tired, the thing is they sold a house and have a bout £35000 in the bank, it seems they will never get any help from the council with rent and rates, but now they seem scared to spend any of it because they think the council will want to know where its gone. The thing is some one told me they are allowed to spend so much a year but as much as I have tried I cant find any guide lines. Its got to the stage where they won,t go on holiday even. Any help would be appreciated.
Thank you.

[Sally]

What a shame that your mum & dad are worrying about spending their own money! If they aren't claiming any means tested benefits yet then they'll have nothing to worry about.  There is a phrase which the authorities use and that is "intentional deprivation" which means that if you intentionally get rid of any capital just to be able to claim benefits, then they will assess you as if you still had the money you've got rid of.  But holidays, new cookers, furniture, even a car would not be seen as intentional spending in that sense.  (Save the receipts so that you can demonstrate where the money has gone).
Encourage your mum & dad to spend and not worry about the consequences.