Savings and universal credit?

us2ontab

I work full time 40 hours a week I have managed to save some cash but I was told there is a limit I can save before universal credit is taken away from universal credit?
I get around £12,000 a year and even though its low we are saving to buy a house I dont think it will be possible if I have to spend the money I have been saving for years, I always thought the savings limit was for people out of work can anyone explain if there is a limit for working familys?

Darksparkle

http://www.entitledto.co.uk/help/Savings-and-other-capital-overview-Universal-Credit

us2ontab

Are childrens bank accounts taken into account? We have 4 children and have been saving for them since birth.

NYM

us2ontab wrote: »

Are childrens bank accounts taken into account? We have 4 children and have been saving for them since birth.

Not if you don't have access to the money in the accounts.
I presume you weren't going to be using their money for your house purchase were you?

us2ontab

No I did use it once in order to pay for a funeral but the money was returned a short while after.

NYM

us2ontab wrote: »

No I did use it once in order to pay for a funeral but the money was returned a short while after.

What type of accounts are they?

If you've accessed funds from those accounts in the past, I imagine you may have problems.

TELLIT01

If you are able to withdraw funds from an account, the value of that account will be taken into consideration when benefit entitlement is calculated. Only junior ISA's and Child Trust Funds are definitely excluded from the calculation.

Weary_soul

Darksparkle wrote: »

http://www.entitledto.co.uk/help/Savings-and-other-capital-overview-Universal-Credit

God, they've really raised the tariff income on savings haven't they. I mean it used to be for every £250 over they would deduct £1.00, but under UC it's raised to £4.35. Thats one hell of a rise imo.

It's really going to put off people from even attempting to save.

tazwhoever

Weary soul - I was thinking the same. Plus it affects Tax Credits.

Mersey_2

Universal Credit is a means-tested benefit (so the same £6k rule applies where you have to declare savings).


Although remember it's effectively net assets, as a ruling stated that if a claimant has eg £8k in savings and a £3k overdraft, they only have £5k of assets and are not therefore over the savings threshold.


Incidentally £6k is a 'limit' in the sense it's a trigger where you have to declare to the DWP. It doesn't stop benefit payments, as others have suggested re tapers above.

tazwhoever

https://www.citizensadvice.org.uk/nireland/benefits/welfare-benefits-reform-ni/universal-credit-ni/how-universal-credit-is-worked-out-ni/

Why do NI pay less than England people. £1 per £250 and we pay £4.35 per £250?

Like many, I am not looking forward to UC.