What should I spend my money on to avoid the Universal Credit savings limit?

oopsiedoopsie

I'm looking for advice on how best to spend the money I have to avoid the cap that comes with Universal Credit.  Are there assets I can have that don't count towards the limit?  Perhaps I need to be thinking outside the box a bit.  Artwork?  Jewellery?  I don't really have a clue.

Pollycat

Start with Googling 'Deprivation of assets'.

Here's a starter for 10:

https://www.entitledto.co.uk/help/Deprivation-of-savings-and-other-capital-Universal-Credit

oopsiedoopsie

I'm not sure I understand.  Are there things UC claimants are and aren't allowed to spend their benefits on?

calcotti

oopsiedoopsie said:

I'm not sure I understand.  Are there things UC claimants are and aren't allowed to spend their benefits on?

OP is not claiming UC. They want to claim UC but have more than £16,000 of capital and wish to dispose of some to bring themselves below the limit.

poppy12345

oopsiedoopsie said:

I'm not sure I understand.  Are there things UC claimants are and aren't allowed to spend their benefits on?

If you have more than £16.,000 then you're excluded from claiming UC. You can pay off debt which is allowed but other than that just spending your money to lower your savings could be classed as deprivation of capital. Giving away your savings to be able to claim UC is also classed as deprivation of capital.

calcotti

OP, you can spend your money on whatever is considered reasonable in the circumstance. I think it is safe to say that artwork and jewellery will not be considered reasonable.

if you have any debts start by paying those off. If you have a mortgage you can pay some of this off. 

oopsiedoopsie

If I'm claiming UC then I receive a certain amount each month.  I know I'm not allowed to keep savings so I want to spend the money that I get.  Is that against the rules?  It seems a bit confusing.  Like I can't save the money but if I spend it then it counts as saving it...?

[Deleted User]

oopsiedoopsie said:

If I'm claiming UC then I receive a certain amount each month.  I know I'm not allowed to keep savings so I want to spend the money that I get.  Is that against the rules?  It seems a bit confusing.  Like I can't save the money but if I spend it then it counts as saving it...?

 Of course you can spend it. Firstly on rent, food, travel and bills. If you need to replace household items thats fine. As would replacing your car if needed.

 Buying expensive goods to get rid of your money to ensure you still get or get more benefits is not

jimpwarsop

Hookers, booze, crack ?

Shares in Tesla ?

GameStop ?

Or my favourite - a share in a racehorse.

oopsiedoopsie

That sounds like I can only buy essential items.  Is that right?  I have to throw any excess money away?  I'm LCWRA, maybe I should have worded the original question differently

[Deleted User]

_shel said:

oopsiedoopsie said:

If I'm claiming UC then I receive a certain amount each month.  I know I'm not allowed to keep savings so I want to spend the money that I get.  Is that against the rules?  It seems a bit confusing.  Like I can't save the money but if I spend it then it counts as saving it...?

 Of course you can spend it. Firstly on rent, food, travel and bills. If you need to replace household items thats fine. As would replacing your car if needed.

 Buying expensive goods to get rid of your money to ensure you still get or get more benefits is not

oopsiedoopsie said:

That sounds like I can only buy essential items.  Is that right?  I have to throw any excess money away?  I'm LCWRA, maybe I should have worded the original question differently

 Not quite what you were told 🙄
you have excess money to throw away 🙄😂 perhaps you dont need benefits