Universal Credit when savings over £16000 reserved for house purchase

TELLIT01

Mickey666 said:

oh_really said:

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

Although that sounds harsh it's a very good point.

I graduated with a degree in biology but even before I had graduated I realised that the sorts of jobs it qualified me for would not earn me enough money for my ambitions.  So I applied for, and got, an entry-level job in the computer industry before I graduated, starting later that year after graduation.  OK, that industry was very different back in the 1980s and there was a shortage of qualified graduates so with some hard work I was able to rapidly progress in a well-paid industry.  I'm not suggesting the OPs son should go the same route, just that he should widen his horizons before he gets stuck in a rut. 

Having said that, if he really wants to do something specific to his degree subject, how about working for property developers or building consultancies as a zoologist?  Sounds odd doesn't it, yet that's exactly what the son of one of my friends has done.  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.  He only graduated a few years ago but is doing very well and has just bought his first house.

The ability to obtain a degree is often more important the subject of the degree to prospective employers.  Had I been in the position to go to university, I would much rather have spent 3 years studying a subject I enjoyed and/or was actually interested in than one which might have higher earning potential but was actually of no interest to me.  The OPs son does need to accept that they need to cast the net wider in search of employment.

A_Lert

Woggle1 said:

Does anyone have anyway that my sons savings can be legally depleted, but retained, so that he can receive UC?

Hell no. Don't go there. Depleting savings "so that he can receive UC" is exactly what the deprivation of capital rules are in place to stop! If your son is deemed as wasting or throwing away his money, the DWP can act like he still has it, and therefore leave him penniless.

There is no clear rule about what spending is "acceptable". It is rather that if the DWP deem the purpose of the spending to be in order to claim benefits, that is deprivation of capital. Considering you've already planned on doing exactly this, any significant increase in your son's spending over previous levels will put him on thin ice.

If it seems unfair, newsflash: Universal Credit is unfair. Deliberately so by government policy.

Consider that having these savings is still a big advantage to your son. He doesn't have to deal with capricious and arbitrary "sanctions", he doesn't have to live on an absolute pittance. (Do ensure that Universal Credit correctly take into account any withdrawal penalties on the savings if that would reduce it under £16,000 though.)

PS: Also, with hindsight, I think your son has dug himself a hole. He presumably graduated June 2019 or so, so before the covid pandemic he's had 9 months to start work and hasn't done so. Because he was being too choosy, by the sounds of it. That 9 months of unemployment will make him less attractive towards potential employers. The most desirable candidates for a job are those already in a job. If an applicant is long-term unemployed, potential employers assume there must be something wrong with them. And now covid-19 is going to dump all over new graduates too.

calcotti

Mickey666 said:

calcotti said:

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!

Might be true.  I just mentioned it as an example of looking for wider opportunities and taking advantage where they exist.  If 'newt-counting' stops being a thing then at least he'll have 3-4 years good work experience under his belt, which cetainly won't do his future job prospects any harm.

I appreciate the wider point you were making and wasn't seeking to dismiss that.

strawb_shortcake

Mickey666 said:

TELLIT01 said:

Mickey666 said:

oh_really said:

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

Although that sounds harsh it's a very good point.

I graduated with a degree in biology but even before I had graduated I realised that the sorts of jobs it qualified me for would not earn me enough money for my ambitions.  So I applied for, and got, an entry-level job in the computer industry before I graduated, starting later that year after graduation.  OK, that industry was very different back in the 1980s and there was a shortage of qualified graduates so with some hard work I was able to rapidly progress in a well-paid industry.  I'm not suggesting the OPs son should go the same route, just that he should widen his horizons before he gets stuck in a rut. 

Having said that, if he really wants to do something specific to his degree subject, how about working for property developers or building consultancies as a zoologist?  Sounds odd doesn't it, yet that's exactly what the son of one of my friends has done.  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.  He only graduated a few years ago but is doing very well and has just bought his first house.

The ability to obtain a degree is often more important the subject of the degree to prospective employers.  Had I been in the position to go to university, I would much rather have spent 3 years studying a subject I enjoyed and/or was actually interested in than one which might have higher earning potential but was actually of no interest to me.  The OPs son does need to accept that they need to cast the net wider in search of employment.

Precisely!  Especially a first degree.  They are, or should be, a door-opener not a sentence to a narrow range of jobs for life.

Having said that, I wonder if things are different these days when so many kids go to university? 

In my last role I used to manage some graduates and it was a mixed bag as to how many doors a degree opened. One didn't end up in FTE until he was 26, he struggled to get work after finishing his degree and spent 12 months or so unemployed. He then decided to go back for a masters degree, after finishing it still took maybe 9 months to secure a job. 
In part I'm sure his difficulties were his personality and social skills. 
Despite running quite a good graduate scheme we have had graduates apply for apprenticeships and entry level roles simply because they've had so many rejections. 

Additionally my 15 year old Daughter considered zoology but after some research realised that there was a lot of competition for paid employment due to the vast number of volunteers.

unkle

kaMelo said:

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.

What on earth has my earnings got to do with this post?

Lanzarote1938

As a single man, does he stil live at home? he will not get very much from Uc anyway. If I was in the OP's position i would try to provid him with some spending/transport cash so he can continue job searching and not have to use his savings. Worth looking into exactly what he would be entitled to if he didn't have savings. You could be surprised at how little it is.

oh_really

Mickey666 said:

I graduated with a degree in biology but even before I had graduated I realised that the sorts of jobs it qualified me for would not earn me enough money for my ambitions.  So I applied for, and got, an entry-level job in the computer industry before I graduated, starting later that year after graduation.  OK, that industry was very different back in the 1980s and there was a shortage of qualified graduates so with some hard work I was able to rapidly progress in a well-paid industry.  I'm not suggesting the OPs son should go the same route, just that he should widen his horizons before he gets stuck in a rut.  

My youngest decided on a dual politics/ history hons degree, got that in the bag and then out of nowhere decided on a social work masters. Took to it like a duck to water and loves SW, plus there are vacancies all over the Uk and he's now considering Aus/ NZ.