Universal credit and savings/capital

mum_to_many

I do not own my own home, but live rent free in one. I do however own a small patch of land approx value £20000. Under the new universal credit rules it asks of savings and capital (which I have been led to believe on here includes land) am I now going to be over the £16000 limit, whilst others who have a house will be entitled. Any help appreciated on this odd situation:o

mum_to_many

At present we are entitled to small WTC and CTC, I am starting to get very worried about this, bought the land as couldn't afford a house or really need one.

BigAunty

Yes, you are correct - capital that was ignored under tax credits will be included under UC. Comparing yourself with an owner occupier is comparing apples with pears - your land is an investment. Owner-occupiers can't realise their capital without selling their property and losing their home! It's not an investment like an ISA, gold bullion, land or other capital which can be accessed more readily, is more liquid.

Look into the transitional protection under UC that guarantees that households are protected in the migration. Hopefully, other posters can confirm how this operates, how long it is and which types of changes in circumstance trigger its loss.

You should consider how to increase the income of your household due to the potential decreasee under UC, how to turn that capital into something useful if you wish to spend it in the interim in order to continue claiming benefits. For example, topping up a pension fund.

mum_to_many

I can not increase the income, we are registered foster carers, and we have 2 children full time. This is a 24 hour 7 day a week "job" as such I also for WTC rules have a low income. This has always been fine as I don't have rent to pay so manage fine. Its just annoying now with this ground. Its used for the childrens horses, which the foster children ride also so really don't want to sell.

edeneve

I sympathise as the change in policy will cause a lot of problems for folk who have had a fantastic deal with claiming tax credits ...tax credits are benefits for people on low income but not meant to support expensive luxuries such as keeping horses!!

I don't like what the tories are doing but if people can claim benefits and keep horses then no wonder there is something way wrong and the loopholes are being closed. Horses are very time consuming too, you say you don't work because your a ft foster carer, so how do you find time (where u could be working) to see to horses. I'm a ft single mum to many too (only one of me though) but also work ft around the kids so it can indeed be done, looking after my 6 kids is a 24hr, 7 day a week job too but I still work 35 hrs (without needing any childcare), you have 2 foster children and it take both of you all the time. With the governments changes to UC there are going to be a lot of people who believe they can't change how they live and work for one reason or another HAVING TO change how they live and work.

Maybe you should turn the horses and 20k investment/land into a business offering riding lessons etc...that way your investment will earn you money to keep your horses, rather than letting benefits supporting your expensive hobby and your 20k sitting pretty. The tories are definately making easy lifestyles on benefits a thing of the past, but you've got a few years yet to make a change, looks like one of three options 1) sell land and take your savings below 16K so you can claim. 2) Turn horses into a business or 3) Get a job and up your income.........

Sorry to be critical I just find it a bit of a shock when so many are struggling....rent free, money from fostering (which i know a lot doesnt get classed as income so ups household income, NOT TO MENTION THE GOOD OLD TAX CREDITS), 20K land and HORSES and your a couple looking after 2 foster kids who you say because you are carers you cant (or won't) get any other job....

shedboy94

edeneve wrote: »

I sympathise as the change in policy will cause a lot of problems for folk who have had a fantastic deal with claiming tax credits ...tax credits are benefits for people on low income but not meant to support expensive luxuries such as keeping horses!!

I don't like what the tories are doing but if people can claim benefits and keep horses then no wonder there is something way wrong and the loopholes are being closed. Horses are very time consuming too, you say you don't work because your a ft foster carer, so how do you find time (where u could be working) to see to horses. I'm a ft single mum to many too (only one of me though) but also work ft around the kids so it can indeed be done.

Maybe you should turn the horses and 20k investment/land into a 'proper' business offering riding lessons etc...that way your investment will earn you money to keep your horses, rather than letting benefits supporting your expensive hobby and your 20k sitting pretty. The tories are definately making easy lifestyles on benefits a thing of the past, but you've got a few years yet to make a change, looks like one of three options 1) sell land and take your savings below 16K so you can claim. 2) Turn horses into a business or 3) Get a job and up your income.........

Sorry to be critical I just find it a bit of a shock when so many are struggling....rent free, money from fostering (which i know a lot doesnt get classed as income so ups household income, NOT TO MENTION THE GOOD OLD TAX CREDITS), 20K land and HORSES and your a couple who you say because you are carers you cant get any other job....

Also, under WTC rules, foster carers are allowed to declare little or no income and enjoy maximum WTC's whilst also receiving thousands of pounds a year in fostering allowances.

mum_to_many

Thank you for your kind post, I do not have anything to do with the horses, the children do. I am allergic to them. The first horse cost £180 8 years ago, so wind your neck in about my luxery hobby. NO One would want a lesson off me, I can't even get on the sodding things.
Also your comments reguarding me getting another job is an insult and shows what little you know

edeneve

Little I know! I do not think so...I'm a psychologist, worked in CAMHS and educational settings, know a lot in general and about fostering...sorry if you didn't like what i had to say, you are probably very good foster parents and I'm not criticising your abilities. Its just for the majority being a foster parent is meant to mimic family life, where parent/s do indeed work also. If the children are capable as you say of looking after the horses, why then if they can do that cant at least one of you work when they are doing it! When I have needed extra money I have taken any job I can, worked nights around the kids, taken the worst jobs no-one else wanted and why!!!! because we NEEDED the money...but then I have a can do, not can't do mentality, always have.

I admire anyone who can offer children a home...but I hate to say I know also of many people becoming foster parents because it is a cushy number in terms of claiming benefits etc as SHEDBOY94 points out. I am not saying at all that is why you are doing it one jot...and it is the upkeep of the horses that is expensive, not neccessarily the buying of them....and that is the continuous expense that your supported income by benefits is going towards.

So option 2 setting up a business is impossible as you can't go near horses...so looks like selling the land and horses or upping your income....but as I say you have a few years left yet to enjoy your lifestyle.

MissMoneypenny

mum_to_many wrote: »

. The first horse cost £180 8 years ago, so wind your neck in about my luxery hobby.

It's not only the buying costs of all your horses and all their tack and rugs and riding equipment and all the safety equipment of varying sizes for all the children to wear (none of which is cheap by any means). It's also the ongoing costs of keeping all the horses i.e. vet bills, farrier bills, hay, feed, worming, vacinations, insurance, upkeep of the land/fencing/shelters; plus riding lessons; new safety and riding equipment as the children grow or if the equipemnt is damaged.

Plus the cost of entering any shows; trials; or pony club/riding club events and transport to these (horse box or trailer) to get there.

It's not a cheap hobby to set up and is defiantely not a cheap hobby to keep going.

HappyMJ

Sell the property to the highest bidder possibly a family member or a friend. Then offer to rent it back. You will then keep the use of the land and have the money to spend.

rogerblack

mum_to_many wrote: »

I do not own my own home, but live rent free in one. I do however own a small patch of land approx value £20000. Under the new universal credit rules it asks of savings and capital (which I have been led to believe on here includes land) am I now going to be over the £16000 limit, whilst others who have a house will be entitled. Any help appreciated on this odd situation:o

With existing benefits rules, this is counted for means tested benefit, as it can be sold sepratrely from the household, and is not a personal posession.
It will make you ineligible for council tax benefit, housing benefit, and any other income related benefit.
UC brings this capital limit for WTC too. (and WTC is eventually going away)