Calls to scrap Universal Credit savings threshold

Thrugelmir

kremlinbot said:

Millennials are generally fu(ked. they can't get houses or start families like they could in the 70's and 80's - I don't know of a single Millennial to age 30 who has bought a house without help or inheritance from their parents. And now we're told by x'ers and boomers - 'at least you saved up a bit of money that you can use now to pay down your rent from the next few months'. I do know I'm generalising a bit here, but things have been dragging along for our entire twenties and now they're doubly !!!!!!. You can kind of see where the dissolution in the entire system comes from and the desire to just want to watch it all come crashing down, what exactly are we supposed to have faith in that will somehow work out for us in the long run? Bit of a rant that people probably won't like here but that is at least a sentiment you might consider from a Millennial.

Perhaps this event is going to have a profound game changing effect on society as a whole. Resetting the way we live.  

mattyprice4004

I think the way it is works fine - at the end of the day, if you have savings you should use those first and foremost rather than relying on handouts.

Only when the handouts are critically needed (ie you have less than the threshold left) should it be awarded; which thankfully is the way it works. 

I’ve been hit hard by all this, but it’s important to maintain perspective. No doubt I’ll have to eat into savings, but I have them so I’m happy to use them. 

KxMx

I'm a millennial too 😉

Jeremy535897

If you want to make a reasoned argument on the "savings cap" in universal credit, you would look at the mechanism by which they decide that £16,000 is the right cut off. The rules state:
"H1760 Claimants cannot get benefit if the total amount of capital is more than £16,000. 1 WR Act 12, s 5; UC Regs, reg 18 Assumed yield from capital
H1761 Claimants are treated as having an assumed yield of £4.35 a month for
 1. each complete £250 of capital over £6,000 up to and including £16,000 and
 2. any capital which is left and which is not a complete £250"
A yield of £4.35 a month on £250 is equivalent to a (guaranteed) annual yield of £208.80 a year, after tax, on £1,000. Even for a non taxpayer that's nearly 21% a year return, in a world of 0.1% interest rates. Furthermore, if inflation had been taken into account, the cap would be nearer £18,500.

gary83

kremlinbot said:

Millennials are generally fu(ked. they can't get houses or start families like they could in the 70's and 80's - I don't know of a single Millennial to age 30 who has bought a house without help or inheritance from their parents. And now we're told by x'ers and boomers - 'at least you saved up a bit of money that you can use now to pay down your rent from the next few months'. I do know I'm generalising a bit here, but things have been dragging along for our entire twenties and now they're doubly !!!!!!. You can kind of see where the dissolution in the entire system comes from and the desire to just want to watch it all come crashing down, what exactly are we supposed to have faith in that will somehow work out for us in the long run? Bit of a rant that people probably won't like here but that is at least a sentiment you might consider from a Millennial.

I’m 37 so a millennial going by the definition, I bought my house in the south west without an inheritance or help from my parents, on a good salary (work in the public sector so it’s not over generous, and don’t get massive bonuses) most of the people I work with are in the same bracket, to say none of us have brought houses is a bit of a generalisation.

Anybody saving has not saved a house deposit, they’ve saved cash. if Corona virus hadn’t have come along they could still have faced problems like redundancies, lengthy periods of time off work due to serious illness, they could have found themselves with big car repair bills, in all those instances they’d have had to pay for it themselves, they’d have spent their cash on it, they wouldn’t have expected the taxpayers to fund their essential costs whilst they had a pile of cash unused in the bank like Scrooge mcduck, why do people suddenly feel like they’re entitled to the taxpayers paying for everything now?

Before all this you only had to open the papers, turn on channel 4/5 and there were always people moaning about “benefit Britain”, saying we were already paying out to much to too many people, now everyone wants the limits to be totally removed and everyone gets free cash? That free cash comes from somewhere, we all have to pay it.

SXX

LilElvis said:

SXX said:

yes I agree the savings limit should be scrapped on UC for the time being.  I put in a huge effort in saving hard and my current savings are for a specific reason (no not for a world cruise) so I do not want to dip into the savings as it will put me back several years.

Lots of people save for a "specific reason" - doesn't mean that they shouldn't adjust their priorities in a world-changing situation. Be thankful you have resources to call on rather than be worrying how you are going to pay for the basic necessities. What's another year of two of saving in the general scheme of things?

Because after 40 years of working, I want to retire in a year's time - rather than work for another 2 years so I can replenish my savings.  Have never ever claimed any benefit in my 40 years of working.   Have been through a lot of recessions and down turns over 40 years  and have never relied on any govt benefits  In previous recessions etc, yes the economy has slowed/few jobs around so have had to try harder to get a job but have just got on with things.  This situation is different in that there is a lockdown.  

SXX

I think the issue is, that this situation is very different. Most people with savings, I imagine if they lost their job during a normal time, would just jump back into work, or find literally any small job they could to get them by.

But now there is a lockdown, we have no choice, the lockdown is enforced by the government, there are not enough jobs to go around and many jobs that do exist, involve putting yourself on the front line and potentially risking your health or your life.

well said

SXX

I’ve been hit hard by all this, but it’s important to maintain perspective. No doubt I’ll have to eat into savings, but I have them so I’m happy to use them. 

I have always saved really, really hard (that is why I have savings)  and have relied on my savings during previous situations and have never ever applied for any benefits but this situation is different in that it is a lockdown, I want to retire in a year's time after over 40 years of working and on top of that my pension has taken a battering so I need my savings more than ever.

sharpe106

SXX said:

I’ve been hit hard by all this, but it’s important to maintain perspective. No doubt I’ll have to eat into savings, but I have them so I’m happy to use them. 

I have always saved really, really hard (that is why I have savings)  and have relied on my savings during previous situations and have never ever applied for any benefits but this situation is different in that it is a lockdown, I want to retire in a year's time after over 40 years of working and on top of that my pension has taken a battering so I need my savings more than ever.

Unfortunately the way the benefit system is set up, it rewards people who don't save. 

gary83

the purpose of the benefit system isn’t to punish those of us that have savings, it’s there to help those that need it in their time of need. We all begrudgingly see that money going out of our pay checks every month & hope we’re never in a situation to need it. 

if you have over £16,000 in the bank you’re not a priority for taxpayers cash, effectively benefits are triaged and directed at those that need it the most. It’s like complaining that you went to A&E with a broken arm and had to wait behind the bloke that turned up after you that had just gone into a coma, or complaining about the police responding faster to a murder enquiry than your broken wing mirror. using your logic you pay the same taxes, why should anyone receive different services to you?

Most of the country will have seen their pensions take a battering. every time you invest in a pension you’re warned that investments can go down as well as up, yes the timing is bad if you want to take it within the next year but you should have invested appropriately and within your risk tolerance. A lot of people are suddenly without work and relying on their savings. I’d like to retire in x amount of years, that’ll probably have been delayed now, the value of my pension has decreased and the rate we’re all paying taxes is going to have to go up. Why do you think that your a special case or deserve additional government support just because you planned to retire in a year? What about those people that want to retire in 2 years? Should they get extra free taxpayers cash too?