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£16,000 savings cut off Universal Credit
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Posts: 63 Forumite
Is it possible anyone can explain how the cut off for Universal Credit works with savings.
Are you meant to be able to earn the same amount in interest on £16,000 savings as you would if you were claiming one of the forms of Universal Credit.
On the disability part of working tax credit if someone works 16 hours a week they can get £4,780 in tax credit
If they have savings of £16,000 they would loose £4,780 each year as they wouldn't be able to claim any more.
Where would you get £4,780 a year in interest on £16,000
Are you meant to be able to earn the same amount in interest on £16,000 savings as you would if you were claiming one of the forms of Universal Credit.
On the disability part of working tax credit if someone works 16 hours a week they can get £4,780 in tax credit
If they have savings of £16,000 they would loose £4,780 each year as they wouldn't be able to claim any more.
Where would you get £4,780 a year in interest on £16,000
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Comments
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As I understand, it's nothing to do with the interest. If you have £16k+ capital, you will not qualify for UC, as with benefits that are currently means tested.
Currently with tax credits, the interest earned on any capital should be declared as income, but capital is disregarded.
Different eligibility criteria altogether.
Hope that helps.Bossymoo
Away with the fairies :beer:0 -
Think Tax Credits are changing to Universal Credit starting from October 20130
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More than £16000 means that you are not entitled to any means tested benefits - that's all the benefits that come under UC. You are then expected to live off your savings until your capital falls below the limit.
The 'old' tax benefit rules will be irrelevant once UC takes over.I'm a retired employment solicitor. Hopefully some of my comments might be useful, but they are only my opinion and not intended as legal advice.0 -
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Yes roll out will be slower and may start in April 2014 onwards. Or at least that was the proposed start date at the start of the year.0
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Tax Credits are an income based welfare payment, but for some strange reason, was never subject to the under 16k rule and conditions that the other income based welfare payments are. That anomaly is being rectified with Universal Credits.RENTING? Have you checked to see that your landlord has permission from their mortgage lender to rent the property? If not, you could be thrown out with very little notice.
Read the sticky on the House Buying, Renting & Selling board.0 -
sammyjammy wrote: »No they aren't, the rollout will be MUCH slower.
Yes, it's looking like a non-starter with each passing week.
This is the latest official pronouncement: https://www.gov.uk/government/news/universal-credit-roll-out-from-october-2013
It's very heavy on spin. By October, rather than Universal Credit being rolled-out nationwide, it will only apply to ten areas in total and in those ten to single unemployed claimants only.0
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