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The law generally allows a person to have up to ÂŁ6,000 in savings at any one time, before their means-tested benefits are affected. Therefore, if a person has ÂŁ4,000 in savings, they can receive another ÂŁ1,999 to ensure they remain below the limit. When the ÂŁ6,000 is exhausted it can be replaced by another ÂŁ6,000 and so on.
Different capital limits apply to Local Authority funding, but the principle remains the same.
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