Artificially Above the UC Savings Limit

dirtyrodriguez

I'm in a tricky situation. I just graduated and expect to be job hunting for quite a few months. I'm not quite eligible for new-style JSA owing to my insufficient past NI contributions. I have about 10k in savings from working (I plan on getting a mortgage asap when I get a job) which is below the upper limit of 16k, so I should still be eligible for some UC.

However, during university my parents leant me some money rather than me take out a maintenance loan, to avoid the crazy interest I'm paying on my tuition loan. I didn't spend a fair amount of it (I'm very frugal), and haven't returned it yet since it's interest-free. But that leaves me above the 16k limit. I'd like to return it, but if I do that and then claim UC I'm worried they'll think I just sent my own money away just so I qualify and do me for benefits cheating or whatever. What can I do in this situation?
Or is this just a (n understandable) penalty for having parents who can lend me money if I need it?

(Complicating matters, my dad also leant me £7.5k of his own money to invest, so that he earns returns on it, and I get to practise investing for later life ((HMRC, he will pay tax on his earnings when I return it to him! He's not evading tax, it's to help me learn)). This means I also have another £8k, which also pushes me over the limit. but again, this isn't actually my money, and i'd obviously rather return it and get any UC i'm eligible for while I job hunt than keep it)

strawb_shortcake

Not the answer you are looking for, but would it not be simpler to find part time work for interim rather than a drawn out process of benefits. I used to manage Graduates in my old team and the ones that had previous work experience really seemed to do much better

TELLIT01

With a setup as complex and convoluted as you describe, I doubt that DWP would accept that the monies in your accounts are not yours. That being the case you won't be able to get UC.

sazaccount

annabanana82 wrote: »

Not the answer you are looking for, but would it not be simpler to find part time work for interim rather than a drawn out process of benefits. I used to manage Graduates in my old team and the ones that had previous work experience really seemed to do much better

^^^^ This, to be fair it will properly be easier to get a part time bar or supermarket job while your looking for a full time in your chosen career.

Clouds88

I would deffo try to get a ‘normal’ job whilst you hunt for a better one. To me it says more about a persons perosnality ect that they have gone out to work hard and earn until another better job comes along.

In my eyes the benefit system is for people who really ‘need’ it. Can you not move in with your parents for the interim and save even more money? I’ve never been without a job since I was 14, having said that I was incredibly lucky to get offered a job straight after getting my degree. Good luck to you

calcotti

Do you have formal loan agreements for the money your parents leant you. If so you can pay them back and it is fine. If there is no agreement then you’re likely to have a hard time convincing DWP.

xylophone

Do you have formal loan agreements for the money your parents leant you.

Lean on me? (Or them)?

I'd be surprised if the parents lent the money against a formal loan agreement.

(Complicating matters, my dad also leant me £7.5k of his own money to invest, so that he earns returns on it, and I get to practise investing for later life ((HMRC, he will pay tax on his earnings when I return it to him!

How will he pay tax on interest/dividends received on an account in your name?

Or do you mean that he will declare them as interest received on a loan?

Why not get some sort of work (as you did when you were a student) rather than mess about with UC?

You could supplement your earnings with the "maintenance loan" from your parents and then repay them in full once you have started your career?

calcotti

xylophone wrote: »

Lean on me? (Or them)?

I'd be surprised if the parents lent the money against a formal loan agreement.

Auto correction! Occasionally families do formalise loan arrangements but, in truth, I wasn’t expecting the answer to be yes.

BAFE

Another one here who says just find any job to do while your looking for your proper one.