Universal credits , Redundancy payment + deprivation of assets

poppy12345

A_Lert said:

The jobseeker's rate of Universal Credit is a pittance, £409 a month if you're 25 or over and £342 a month if you're under 25.

Which has of course been increased by about £90 per month due to Covid and is due to end in April 2021 and return to it's usual amount.

calcotti

Published UC standard Allowances from April 2021 are Single under 25 £257.33, 25 or over £324.84. Government may choose to extend a COVID uplift which would raise these amounts.
For couples the published amounts are under 25 £403.93, 25 or over £509.91.

Numberwang_2

MarkN88 said:

Numberwang_2 said:

Earmark some for home improvements, new kitchen, bathroom etc won’t be classed as capital? 

Get a decent safe and keep some at home.

Why do people always think they can do that and potentially commit fraud? 

Where, in the past 6 months, a person has received a sum of money by way of a loan, grant or otherwise which is to be used for making essential repairs or alterations to premises occupied or intended to be occupied as the person’s home, that amount can be disregarded from the calculation of the claimant’s capital but only where it is used for that purpose.

It is reasonable to disregard the grant, loan or otherwise for a longer period if the repairs and alterations will take more than 6 months. 

Not fraud it’s in the UC guidance, as above. 

The safe was tongue in cheek, sorry it wasn’t a helpful addition.

calcotti

Numberwang_2 said:

MarkN88 said:

Numberwang_2 said:

Earmark some for home improvements, new kitchen, bathroom etc won’t be classed as capital? 

Get a decent safe and keep some at home.

Why do people always think they can do that and potentially commit fraud? 

Where, in the past 6 months, a person has received a sum of money by way of a loan, grant or otherwise which is to be used for making essential repairs or alterations to premises occupied or intended to be occupied as the person’s home, that amount can be disregarded from the calculation of the claimant’s capital but only where it is used for that purpose.

It is reasonable to disregard the grant, loan or otherwise for a longer period if the repairs and alterations will take more than 6 months. 

Not fraud it’s in the UC guidance, as above. 

The safe was tongue in cheek, sorry it wasn’t a helpful addition.

Interesting, while a redundancy payment obviously isn't a loan or grant I wonder whether a redundancy payment can fall within the 'or otherwise' category. However I suspect this isn't relevant to OP.

Xbigman

This is where the OP's girlfriend needs to work out the numbers.
Use a spreadsheet program and start from the basis that all except 6k (or 5999) will be paid off the mortgage, making sure the overpayment reduces the monthly mortgage payment and not the term of the mortgage. If that 6k will make the mortgage payments for 9 months or more then it's a goer. If its close, say 7 or 8 months then I'd still do it and rely on maybe a small loan from friends or using some of that UC money to make up the shortfall. Below 6 months worth of payments (which would make the OP's girlfriends mortgage more than 1k a month, which seems unlikely as they are low paid) then some money over 6k would need to be kept back and playing with the spreadsheet figures should give the optimum balance.

Knowing the benefits systems rules, some basic spreadsheet skills and common sense forward planning can be massively beneficial with todays benefits system.


Darren