Universal Credit when savings over £16000 reserved for house purchase

oh_really

Perhaps he should have chosen his degree subject with more thought.

There are lots of vacancies for carers.

pmlindyloo

Woggle1 said:

I would appreciate any help that can be given please?

My son left university last year with a good masters degree, but cannot get a job anywhere. There does not seem to be much demand for zoologists. He has no money to live on so after his six months of JSA applied for UC. His application was refused since he has more than £16000 in savings. He needs money to live. His savings have been accumulated due to small inheritances and savings by us which we gave him when he reached 18. It was always his and our intention to save this money and use it for a house deposit. It has been squirrelled away in long term savings, help to buy ISAs, lifetime ISA etc since he is not yet ready to buy a house. The money is not readily available to him, without penalties.

Apparently according to UC he is supposed to use his savings to live on. The money is not readily available to him and moreover was always intended for a house deposit, not to live on.

Even if he could get at the money he can't simply give his savings away, or spend it, to get UC, because that would be considered deprivation of capital. Buying 10 years of beer supplies is a no no apparently. Apparently expenditure on living expenses to deplete the capital is OK, but starting to charge rent when he has previously been allowed to live at home for free (as he had no job) would also be deprivation of capital. Charging back rent is also a no no I'm told, because it would simply be being done to deplete his capital so he could get UC. That would be true as we would no doubt give the money back to him should he need it to buy a house.

All of this seems so unfair. If he, or us, had spent our money on booze and women he would have had no savings and be eligible for UC. Because he, and us, have been responsible no support is available when it is desperately needed! I imagine this is a common issue.

Does anyone have anyway that my sons savings can be legally depleted, but retained, so that he can receive UC? He doesn't have any debts, except his student loan which of course is not really a debt and anyway he doesn't' have to repay anything while he has no income.

Thanking you in advance for any help you can offer.

Trying to get my head round how the son was entitled to 6 months on JSA.  Was he working whilst at uni?

calcotti

Galloglass said:

Given that the majority of student loans are expected to be cancelled before they are paid off then paying down the loan doesn’t necessarily make sense.

Sense in what sense?

Without wishing to drift into a discussion on policy and whether the taxpayer should be stiffed for a cost (which is they OP's original question about UC) there is no guarantee that the debt won't become payable if the rules on income are changed.

It also raises the question implied by the OP which is what is the value of a degree which doesn't generate an income sufficient to pay of a loan on such generous terms.

In the sense that unless the debt is paid off in full he is still liable to make repayments at a fixed rate based on income regardless of the size of the outstanding debt and if he still ends up paying for the full term until it is written off then paying down (as opposed to paying off) the debt is a complete waste of money. It depends on the numbers involved.

poppy12345

pmlindyloo said:

Woggle1 said:

I would appreciate any help that can be given please?

My son left university last year with a good masters degree, but cannot get a job anywhere. There does not seem to be much demand for zoologists. He has no money to live on so after his six months of JSA applied for UC. His application was refused since he has more than £16000 in savings. He needs money to live. His savings have been accumulated due to small inheritances and savings by us which we gave him when he reached 18. It was always his and our intention to save this money and use it for a house deposit. It has been squirrelled away in long term savings, help to buy ISAs, lifetime ISA etc since he is not yet ready to buy a house. The money is not readily available to him, without penalties.

Apparently according to UC he is supposed to use his savings to live on. The money is not readily available to him and moreover was always intended for a house deposit, not to live on.

Even if he could get at the money he can't simply give his savings away, or spend it, to get UC, because that would be considered deprivation of capital. Buying 10 years of beer supplies is a no no apparently. Apparently expenditure on living expenses to deplete the capital is OK, but starting to charge rent when he has previously been allowed to live at home for free (as he had no job) would also be deprivation of capital. Charging back rent is also a no no I'm told, because it would simply be being done to deplete his capital so he could get UC. That would be true as we would no doubt give the money back to him should he need it to buy a house.

All of this seems so unfair. If he, or us, had spent our money on booze and women he would have had no savings and be eligible for UC. Because he, and us, have been responsible no support is available when it is desperately needed! I imagine this is a common issue.

Does anyone have anyway that my sons savings can be legally depleted, but retained, so that he can receive UC? He doesn't have any debts, except his student loan which of course is not really a debt and anyway he doesn't' have to repay anything while he has no income.

Thanking you in advance for any help you can offer.

Trying to get my head round how the son was entitled to 6 months on JSA.  Was he working whilst at uni?

Well spotted. Full time students can't usually claim New style JSA anyway. https://www.disabilityrightsuk.org/students-and-jsa

pmlindyloo

poppy12345 said:

pmlindyloo said:

Woggle1 said:

I would appreciate any help that can be given please?

My son left university last year with a good masters degree, but cannot get a job anywhere. There does not seem to be much demand for zoologists. He has no money to live on so after his six months of JSA applied for UC. His application was refused since he has more than £16000 in savings. He needs money to live. His savings have been accumulated due to small inheritances and savings by us which we gave him when he reached 18. It was always his and our intention to save this money and use it for a house deposit. It has been squirrelled away in long term savings, help to buy ISAs, lifetime ISA etc since he is not yet ready to buy a house. The money is not readily available to him, without penalties.

Apparently according to UC he is supposed to use his savings to live on. The money is not readily available to him and moreover was always intended for a house deposit, not to live on.

Even if he could get at the money he can't simply give his savings away, or spend it, to get UC, because that would be considered deprivation of capital. Buying 10 years of beer supplies is a no no apparently. Apparently expenditure on living expenses to deplete the capital is OK, but starting to charge rent when he has previously been allowed to live at home for free (as he had no job) would also be deprivation of capital. Charging back rent is also a no no I'm told, because it would simply be being done to deplete his capital so he could get UC. That would be true as we would no doubt give the money back to him should he need it to buy a house.

All of this seems so unfair. If he, or us, had spent our money on booze and women he would have had no savings and be eligible for UC. Because he, and us, have been responsible no support is available when it is desperately needed! I imagine this is a common issue.

Does anyone have anyway that my sons savings can be legally depleted, but retained, so that he can receive UC? He doesn't have any debts, except his student loan which of course is not really a debt and anyway he doesn't' have to repay anything while he has no income.

Thanking you in advance for any help you can offer.

Trying to get my head round how the son was entitled to 6 months on JSA.  Was he working whilst at uni?

Well spotted. Full time students can't usually claim New style JSA anyway. https://www.disabilityrightsuk.org/students-and-jsa

I meant after he had finished uni. How was he eligible for new style JSA?

xylophone

It must be very disappointing not to be able to find work in his area of interest.

Has he tried elsewhere?

An acquaintance had a degree in marine biology but found work in a bank!

If he can find anything at all it will be better than sitting at home worrying  and will be the source of a reference when the jobs market improves.

unkle

Unfortunately the benefit system doesn't really cater for those that are careful or prudent as you are finding.
He either gets a job, any job, or lives off savings until such time as they deplete enough to go onto UC.
My daughter is just entering her third year at Uni, she earns quite well between terms working in McDonalds. Certainly would be enough to live on if more full time (if living with parents). It may not be ideal, but he needs to just get a job, almost any job to pay his way in life and hopefully over time he'll be able to move into a career of his choice rather than need.

I'm currently unemployed, have a family to support, but only get £74 a week JSA, because i've saved money. Thats how it is i'm afraid.

kaMelo

unkle said:

Unfortunately the benefit system doesn't really cater for those that are careful or prudent as you are finding.
He either gets a job, any job, or lives off savings until such time as they deplete enough to go onto UC.
My daughter is just entering her third year at Uni, she earns quite well between terms working in McDonalds. Certainly would be enough to live on if more full time (if living with parents). It may not be ideal, but he needs to just get a job, almost any job to pay his way in life and hopefully over time he'll be able to move into a career of his choice rather than need.

I'm currently unemployed, have a family to support, but only get £74 a week JSA, because i've saved money. Thats how it is i'm afraid.

For context, also reckons they will earn at least £150,000 this year.

TELLIT01

The simple reality is that the Income Related parts of the benefit system such as Universal Credit have a cut off point regarding savings / capital.  Those with substantial savings are expected to live off that before trying to claim from the State.  Savings cannot generally be ring-fenced for a specific purpose and therefore disregarded when calculating benefit entitlement.  One of the exceptions is where a property has been sold and the proceeds of that sale are intended for the purchase of another property.  Even then the disregard period is only 6 months.  As I assume the son hasn't sold a property, the savings do not fall into that category.

If / when he is in a position to claim UC he will be expected to look for ANY work, not just jobs directly relevant to his degree.

Some people do need a wake up call in order to join the real world.  The dream job is rarely there.

calcotti

Mickey666 said: ..He works as a consultant carrying out ecological surveys to support planning applications and helping to mitigate any harm to native species during building works.  

Not sure those will be needed as much if the current planning 'reform' proposals are enacted. According to Boris "Newt-counting delays are a massive drag on the prosperity of this country". However we are straying a long way from support for benefits questions!