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

calcotti

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

Your original question did read as if you wanted to pay down savings in order to claim UC. What I understand now is that are concerned that your spend on your basic living expenses is less than the amount of UC you are receiving. This leaves a ‘surplus’ which becomes capital and could take you over the savings threshold.
As previously advised you can spend your money on anything that is reasonable in the circumstances - that is clearly not restricted to essential items. It’s essential to buy food, it’s reasonable to buy more expensive foods if you wish to. It’s reasonable to replace a worn out carpet etc. 

oopsiedoopsie

calcotti said:

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

Your original question did read as if you wanted to pay down savings in order to claim UC. What I understand now is that are concerned that your spend on your basic living expenses is less than the amount of UC you are receiving. This leaves a ‘surplus’ which becomes capital and could take you over the savings threshold.
As previously advised you can spend your money on anything that is reasonable in the circumstances - that is clearly not restricted to essential items. It’s essential to buy food, it’s reasonable to buy more expensive foods if you wish to. It’s reasonable to replace a worn out carpet etc. 

Sorry, I didn't make my circumstances clear, but yes you have it correct now. 

I suppose the word essential is subjective but the list of things you put there are the kind of thing I was thinking of.  Things that need replacing because they are worn out etc.  So I can't buy extra things that don't have a purpose functional purpose like antiques and art and things?

Maybe I should redo the thread now I have a better understanding of what I need to be asking. 

[Deleted User]

oopsiedoopsie said:

calcotti said:

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

Your original question did read as if you wanted to pay down savings in order to claim UC. What I understand now is that are concerned that your spend on your basic living expenses is less than the amount of UC you are receiving. This leaves a ‘surplus’ which becomes capital and could take you over the savings threshold.
As previously advised you can spend your money on anything that is reasonable in the circumstances - that is clearly not restricted to essential items. It’s essential to buy food, it’s reasonable to buy more expensive foods if you wish to. It’s reasonable to replace a worn out carpet etc. 

Sorry, I didn't make my circumstances clear, but yes you have it correct now. 

I suppose the word essential is subjective but the list of things you put there are the kind of thing I was thinking of.  Things that need replacing because they are worn out etc.  So I can't buy extra things that don't have a purpose functional purpose like antiques and art and things?

Maybe I should redo the thread now I have a better understanding of what I need to be asking. 

 If you buy things like antiques, art, a £40k car, stocks or even shove it in a P2P site https://forums.moneysavingexpert.com/discussion/6237011/does-p2p-lending-count-towards-the-savings-limit-on-universal-credit#latest
you will be classed as having the money and your benefits reduced accordingly.

calcotti

oopsiedoopsie said:

I suppose the word essential is subjective but the list of things you put there are the kind of thing I was thinking of.  Things that need replacing because they are worn out etc.  So I can't buy extra things that don't have a purpose functional purpose like antiques and art and things?

Maybe I should redo the thread now I have a better understanding of what I need to be asking. 

Please don’t start another thread on the same subject - the answers you have received should have given you enough information. There is no definitive answer because each case is looked at on its merits by a Decision Maker. My opinion is that it is not reasonable to buy expensive art and antiques if your are expecting the state to support your living expenses. Buying something to decorate your room doesn’t seem unreasonable.

oopsiedoopsie

Would paying student loan be a good idea?  I know Martin Lewis always says not to pay it off any more than you need to, but would this be an exception to that rule do you think?  Like I say I'm LCWRA and I'm just trying to work out what to do because I'm not allowed savings.  I'm not trying to scrounge

Pollycat

The OP has a thread (started on 30/1/21) about putting money into P2P lending:

https://forums.moneysavingexpert.com/discussion/6237011/does-p2p-lending-count-towards-the-savings-limit-on-universal-credit#latest

calcotti

Paying down a student loan is certainly allowed - whether it’s a good idea is quite another matter. If you will never pay it off anyway it seems to me a waste of money.

oopsiedoopsie

Pollycat said:

The OP has a thread (started on 30/1/21) about putting money into P2P lending:

https://forums.moneysavingexpert.com/discussion/6237011/does-p2p-lending-count-towards-the-savings-limit-on-universal-credit#latest

Yes.  This is just a broader version of that question.  Sorry, should I not have started a new thread?

oopsiedoopsie

calcotti said:

Paying down a student loan is certainly allowed - whether it’s a good idea is quite another matter. If you will never pay it off anyway it seems to me a waste of money.

Right, but if I have to waste money somehow because I'm not allowed savings do you think that would be the best option?

Pollycat

I think all related things should be in one thread - both are questions about spending/amount of savings on UC claims.

But that's just my opinion. I have a tidy mind.

I'm curious:

You were on UC when you posted on 3/1/2019.

Are you now applying for UC again?