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Thread: UC and savings

  1. #1

    UC and savings

    Hi everyone I have a question to ask .
    I recently came in to some money £4000 and I had £2000 in savings so I have £6000 in my savings account , I have declared that I have £6000 now and sent statements. My other account which is my living expenses account where my UC gets paid in but that is where I pay my rent, bills , food from ( this isn’t savings though as it’s my day to day money ) . I’m not sure how this works? Is this also classed as savings / capital ?

    Thanks for any advice .

  2. #2
    Senior Member nukecad's Avatar
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    As long as it's only your benefits going in and out (or other income below your 'Work Allowance') then I believe that it will not count as capital/savings but as 'Income'.

    (Otherwise your 'savings' total would be going up and down faster than they could calculate it each month).

    If they want to see the account details they will (should) ask for your bank statements.

    I believe they have even started looking at how much you may have in Paypal/Amazon acounts and the like. (And wondering what they can do about bitcoin).

    I'm aware that you have been on UC for a number of years now, but just to double check that this £4k wasn't backpay of benefits was it?
    If so it can be disregarded as capital for at least 52 weeks.

    The general rules on UC and capital can be found here:
    https://revenuebenefits.org.uk/unive...capital-rules/
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    Migration from ESA to Universal Credit- Click here for information.

  3. #3
    Thanks nukecad

    No it wasn’t backpay ( has an old gold watch and had no idea it was a limited edition collectors item , got it valued and just decided to sell it )
    The only money that goes into my regular account is my UC , glad to hear it should be all fine then .

  4. #4
    I have had to declare all accounts - current and savings - but that is for ESA
    they also ask about cash at home

    its best to be up front, like you are

    but I agree the current acc. is always changing with rent going in/out and benefits

  5. #5
    I have about £4.50 at home in pennies and about £1.25 in my paypal account lol

    I agree it’s always best to be honest , they’ve given me the biggest headaches already and caused me bad stress , the last thing I want is to make things more difficult for myself .

    I can’t see that they could class benefit income as savings though as it fluctuates weekly with rent , bills food etc .

    Thanks for replying.

  6. #6
    I get your point about benefit income
    but that is all I have as income (well including HB) and it is certainly counted - as in have to submit bank statements
    and it is added to the savings amount and then that is worked out as I think £1 income for every £250 or part of, over £6k

    but I do not know how it works with UC

  7. #7
    Thanks Walker , I’m sure it’d be pretty much the same with UC then , I’m shocked that they count benefits though .
    This’ll cause me stress , wish I hadn’t bothered to sell the watch now . Maybe I’ll just buy myself a new MacBook and get the savings down to £5000 . Sending in statements every month will cause me unnecessary stress .

  8. #8
    i really hope i have not added to your stress
    that was the last thing i wanted to do

    i didn't know you would have to send statements in every month

    if you need a new laptop then why not
    that is not unreasonable

  9. #9
    Thx Walker

    DWP have just given me a headache for ages and the less I deal with them the better for my MH.

    I’m sure I’ll get it sorted in the end .

  10. #10
    Senior Member nukecad's Avatar
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    Quote Originally Posted by walker View Post
    I get your point about benefit income
    but that is all I have as income (well including HB) and it is certainly counted - as in have to submit bank statements
    and it is added to the savings amount and then that is worked out as I think £1 income for every £250 or part of, over £6k

    but I do not know how it works with UC
    With UC it's a deduction of £4.35 a month for each £250, or part thereof, over £6K, (which is roughly the same as the £1 a week with ESA).
    It's laid out in more detail in the link I gave above.

    I remember a thread from a few years back where the claimant was not spending any of their benefit money (living with parents).
    Because it wasn't spent it built up to a tidy sum and was then classed as savings.

    EDIT, the rough and ready rule there is that money received as benefits is 'income', but if there is any left when you get you next benefit payment that 'leftover' becomes savings.

    I'd also be careful about buying a new computer, - do you need one?
    If it's not needed, and especialy if you replace one that you then 'give away', the spending may be seen as "Deprivation of Capital".
    There are no set rules on what counts as 'Deprivation' each case is judged individually.
    You would be best getting the DWPs agreement, preferably in writing, before spending any 'large' amounts that bring down your savings.
    Last edited by nukecad; 03-28-2019 at 11:46 AM.
    I don't know everything. - But I'm good at searching for, and finding, stuff.

    Migration from ESA to Universal Credit- Click here for information.

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