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UC savings questions
- neptune1980
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5 days 15 hours ago #303410 by neptune1980
UC savings questions was created by neptune1980
Hello all,
I have some questions on UC savings.
1) we migrated over to UC from TC last Aug and were granted capital protection for 12 months as we had over 16k in savings.
However we have some very urgent repairs which means we will be going under 16k much sooner than Aug. Probably next week.
Any advice on what happens or any particular date within the AP would work better?
Will our claim stop?
What should we do?
2) after we lose our 16k capital protection and drop under 16k we suspect we will at times peek back over 16k during the APs for a short time until our savings go back under 16k by the end of the AP after our cost of living expenses are paid.
Do we need to make a note on the journal when this happens?
Is there any official guidance on this for those who are under 16k but who go over 16k during the AP but at the end of the AP they have spent what they went over and are back under 16k by the end of the AP. The example below doesn't mention someone in the above situation though, sounds like someone with savings between 6k - 16k?
But maybe the same principle applies to someone who temporarily goes over 16k while in the AP but then spends it before end of AP?
Anyone else had this happen to them? What happened?
www.gov.uk/guidance/universal-credit-mon...ings-and-investments
"
Income
Your income is counted as savings if it has not been spent by the end of the assessment period after the one in which it was received.
Example
Katie’s assessment period for Universal Credit runs from the 8th of the month to the 7th of the next month.
Katie was paid a salary of £2,000 on 1 April. This was within her 8 March to 7 April assessment period.
By the end of her next assessment period (8 April to 7 May), she has spent £1,500 of this income.
For the next assessment period (8 May to 7 June) she should report the saved £500 as part of her savings.."
I have some questions on UC savings.
1) we migrated over to UC from TC last Aug and were granted capital protection for 12 months as we had over 16k in savings.
However we have some very urgent repairs which means we will be going under 16k much sooner than Aug. Probably next week.
Any advice on what happens or any particular date within the AP would work better?
Will our claim stop?
What should we do?
2) after we lose our 16k capital protection and drop under 16k we suspect we will at times peek back over 16k during the APs for a short time until our savings go back under 16k by the end of the AP after our cost of living expenses are paid.
Do we need to make a note on the journal when this happens?
Is there any official guidance on this for those who are under 16k but who go over 16k during the AP but at the end of the AP they have spent what they went over and are back under 16k by the end of the AP. The example below doesn't mention someone in the above situation though, sounds like someone with savings between 6k - 16k?
But maybe the same principle applies to someone who temporarily goes over 16k while in the AP but then spends it before end of AP?
Anyone else had this happen to them? What happened?
www.gov.uk/guidance/universal-credit-mon...ings-and-investments
"
Income
Your income is counted as savings if it has not been spent by the end of the assessment period after the one in which it was received.
Example
Katie’s assessment period for Universal Credit runs from the 8th of the month to the 7th of the next month.
Katie was paid a salary of £2,000 on 1 April. This was within her 8 March to 7 April assessment period.
By the end of her next assessment period (8 April to 7 May), she has spent £1,500 of this income.
For the next assessment period (8 May to 7 June) she should report the saved £500 as part of her savings.."
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5 days 11 hours ago #303415 by David
Nothing on this board constitutes legal advice - always consult a professional about specific problems
Replied by David on topic UC savings questions
Hi neptune1980
These are the UC regs--
F1
The transitional capital disregard
51.—(1) A transitional capital disregard is to apply where, on the migration day, the claimant—
(a)is entitled to an award of a tax credit; and
(b)has capital exceeding £16,000.
(2) Where a transitional capital disregard applies, any capital exceeding £16,000 is to be disregarded for the purposes of—
(a)determining whether the financial condition in section 5(1)(a) or 5(2)(a) of the Act (capital limit) is met; and
(b)calculating the amount of an award of universal credit (including the indicative UC amount).
(3) Where a transitional capital disregard has been applied in the calculation of an award of universal credit but, in any assessment period, the claimant no longer has (or joint claimants no longer have) capital exceeding £16,000, the transitional capital disregard is not to apply in any subsequent assessment period.
(4) A transitional capital disregard is not to apply for more than 12 assessment periods.]
As you can see from the above your UC claim cannot dip in and out of the £16000 threshold as the claim will be closed. UC uses your total savings balance on the last day of an assessment period so it can go above temporarily during the AP. To avoid disputes though I would keep the balance as per your bank statements below £16000.
David
These are the UC regs--
F1
The transitional capital disregard
51.—(1) A transitional capital disregard is to apply where, on the migration day, the claimant—
(a)is entitled to an award of a tax credit; and
(b)has capital exceeding £16,000.
(2) Where a transitional capital disregard applies, any capital exceeding £16,000 is to be disregarded for the purposes of—
(a)determining whether the financial condition in section 5(1)(a) or 5(2)(a) of the Act (capital limit) is met; and
(b)calculating the amount of an award of universal credit (including the indicative UC amount).
(3) Where a transitional capital disregard has been applied in the calculation of an award of universal credit but, in any assessment period, the claimant no longer has (or joint claimants no longer have) capital exceeding £16,000, the transitional capital disregard is not to apply in any subsequent assessment period.
(4) A transitional capital disregard is not to apply for more than 12 assessment periods.]
As you can see from the above your UC claim cannot dip in and out of the £16000 threshold as the claim will be closed. UC uses your total savings balance on the last day of an assessment period so it can go above temporarily during the AP. To avoid disputes though I would keep the balance as per your bank statements below £16000.
David
Nothing on this board constitutes legal advice - always consult a professional about specific problems
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