Universal credit and help to save

Bumblebeedriver

Does anyone have experience of the govt Help to Save accounts being included in the savings figures we have to declare for UC calculations. We’ve actually asked them and they don’t know! 

huckster

Yes you would include it. It is part of savings. If Government intended to exclude it from benefit savings consideration, they would have specifically stated this was the case.

calcotti

Yes it's included. The scheme is intended to encourage people to save if they can. Even if both halves of a couple each saved the maximum amount over 4 years the joint total would only be £2,400 and would therefore have no impact on benefit entitlement. 

whizzywoo

calcotti said:

Even if both halves of a couple each saved the maximum amount over 4 years the joint total would only be £2,400 and would therefore have no impact on benefit entitlement. 

That's not my understanding of it.  Each member of a couple can save a maximum of £50 per month each.  So for 48 months (4 years) that would mean £2,400 each making a total saved of £4,800.  After the first 2 years there is a £600 bonus each and then a further £600 each at the end of the 4 year term.
Assuming that none of the savings are withdrawn and the full bonuses are not spent but saved in another account, the total amount would be £7,200.

For example:
Mr X saves £50 x 48 months:   £2,400
Mr X bonus at 24 months:        £    600
Mr X Bonus at 48 months:        £    600
TOTAL £3,600

Mrs X saves £50 x 48 months:   £2,400
Mrs X bonus at 24 months:        £    600
Mrs X Bonus at 48 months:        £    600
TOTAL £3,600

Therefore a couple could potentially have savings of £7,200 when the final bonuses are received.

calcotti

whizzywoo said: Therefore a couple could potentially have savings of £7,200 when the final bonuses are received.

You are absolutely correct - thanks for correcting me.

NedS

whizzywoo said:

Therefore a couple could potentially have savings of £7,200 when the final bonuses are received.

Not necessarily. The first bonus of £1200 is paid after two years and may have been spent by the time the final bonus is paid. Therefore, the final balance would be £4800 saved and £1200 bonus giving a total of £6000.

whizzywoo

NedS said:

whizzywoo said:

Therefore a couple could potentially have savings of £7,200 when the final bonuses are received.

Not necessarily. The first bonus of £1200 is paid after two years and may have been spent by the time the final bonus is paid. Therefore, the final balance would be £4800 saved and £1200 bonus giving a total of £6000.

I did say "potential" savings and assuming none of the savings had been spent.