Savings and universal credit?

SkyeKnight

skcollobcat10 wrote: »

But if an able bodied person was working a full time 40 hours contract like most people without children would do, they would still be taxed 20%, ni12% and would not have to rely on tax credits at all.

My husband and I worked full time and had 3 children, we paid ourselves for childcare.

What I can't understand is why can't people work full time now, why only work 16 hours? I think people stick to 16 hours because it maximises tax credits so that all they have to do is what really is the equivalent of 2 working full days and have 5 days off per week.

Well, not really relevant to UC where there isn't the 16 hour benfit trap anyway, but the argument I'm trying to make is: if you work 16 hours you should be better off than someone working 0. If you work 80 hours between you, you should be better off than someone only working for 16. However, means testing UC means that you can't save your extra income - you have to spend it or you end up worse off than the person not working at all. It just doesn't make sense to means test a working benefit.

dirtydingismagee

Have researched re savings etc for UC, but can anyone clarify whether current accounts will be included in 'savings'? Say I have £3,000 in a savings account, and then take my current account. At the height of the month, once salaries are in, there could be a balance of around £3,500. But once all bills etc are paid, it could sit at £500 or less. Surely a current account can't count towards the £6k savings (but if it doesn't, then anyone with savings approaching/over the limit can just stick some in their everyday account?)

pmlindyloo

When claiming UC (and currently any means tested benefits) all money which you have is counted. This includes all bank accounts, ISAs, cash, premium bonds etc etc. which you will have to produce for them.

Of course they will look at your current account and see if you have a huge amount left over each month and count that as savings.

There is no escaping.

They have cross referencing with countless 'bodies' including nosy neighbours!

sammyjammy

dirtydingismagee wrote: »

Have researched re savings etc for UC, but can anyone clarify whether current accounts will be included in 'savings'? Say I have £3,000 in a savings account, and then take my current account. At the height of the month, once salaries are in, there could be a balance of around £3,500. But once all bills etc are paid, it could sit at £500 or less. Surely a current account can't count towards the £6k savings (but if it doesn't, then anyone with savings approaching/over the limit can just stick some in their everyday account?)

In your example it wouldn't count as its not capital, if you always had 3k in your current account as a minimum that would be capital but because its less than the current lower limit of £6k it would not reduce benefits.