Savings and Universal Credit

Dave3456

I have savings of about £8000 and I am applying for universal credit. I need to change my car. This is for a valid reason not just to get rid of some money. So basically I will have over 8k when I apply. I know how much I will lose and how that's calculated. My question is - if the amount of capital I have is reduced by about £3000 (without any deprivation of capital) and under the £6000 allowed, how soon can I ask the DWP to re assess and how long would it take for my award to be changed to the full amount?

NedS

The amount of capital reduces each month by the assumed income generated by that captial.

The assumed income on £8000 is £34.80 (£4.35 for each £250 over £6000), therefore the capital of £8000 would reduce by £34.80 each month until it is at or below £6000. It will therefore take 58 months to reduce the capital to the point you will receive a full award of UC.

calcotti

I would advise them as soon as you have spent the money. However to preempt questions about possible deprivation of capital it would be sensible to include details of why you ‘need’ to change your car. I don’t know how long it will take to reassess your award but, when/if made, the changes should be applied to the assessment period in which the change took place.

Dave3456

Thanks. I will do that. Its a mobility related issue so I don't think there would be any argument. I wondered if there was a minimum time before you could get reassessed. I can't find anything documented.

Sheepski

No minimum time it will be reassessed upon you telling them of the change, and changes can be done whenever. Obviously the processing time for the change and decision will vary.

As Calcotti has said though, do let them know not only how much was spent but also why you needed that new car as this is where deprivation of capital issues may arise. If you're changing from a perfectly working, maintained car that you've been using for years (for example) to a newer car for no reason than the features on it then they can easily say you shouldn't have. But if it's because the car has broken down and needs a lot of work, or doesn't fit reasonable purpose anymore then you should be fine.