Are Premium Bond Winnings Classed As Earnings/Income on Universal Credit?

Skylark83

Hi All,
Hoping to find some answers here please. I'm on Universal Credit and I have capital that is over £6000, but under £16000.
I have informed universal credit about my total capital and they have deducted my benefit accordingly.

Part of my capital includes savings in Premium Bonds.  What I can't seem to find an answer to anywhere, is are the winnings you get from Premium Bonds, seen as a source of income/earnings?  Or are they basically just seen as more capital?

I have heard that dividends from stocks/shares and interest from savings accounts are seen as capital, not classed as earnings?

I think gambling wins/lottery wins might be seen as earnings?  But I have never thought Premium Bonds was a form of gambling.

So, if I win £25 every now and then via Premium Bonds, do I have to declare that as an earning to universal credit? Or would I just add the £25 to my capital, then inform universal credit of my new capital total?

I know £25 is such a small amount, but even winning £100 or £1000...I'm unsure if it would be seen as earnings or just an increase in capital?

Really appreciate any answers offered, as it is so hard to find information on this. Wanted to check here before phoning DWP, as sometimes the universal credit advisors have zero clue themselves and have given wrong information before.

Thanks in advance...

calcotti

Premium Bond winnings will be treated as an addition to capital.
ADM Chapter H1 (publishing.service.gov.uk)

H1021 A payment is capital if it is
1. not made or due to be made regularly and
2. made without reference to a period.

Arthurian

https://forums.moneysavingexpert.com/discussion/305876/winning-money-whilst-claiming-benefits/p2  is an old discussion but might help.  From what I can see, it corroborates calcotti's post.

Skylark83

Thanks for your replies Calcotti and Arthurian. 👍🏽

I was a little worried I would have to keep declaring a £25 win as earnings. Would take the fun out of winning really and i'm much happier just reinvesting the £25 and alerting universal credit to a change in my total capital.

calcotti

Skylark83 said: i'm much happier just reinvesting the £25 and alerting universal credit to a change in my total capital.

You only need to tell them if your total capital crosses a £250 threshold. They don't need to know every little change.

Skylark83

calcotti said:

Skylark83 said: i'm much happier just reinvesting the £25 and alerting universal credit to a change in my total capital.

You only need to tell them if your total capital crosses a £250 threshold. They don't need to know every little change.

Thanks, I'll be sure to keep an eye on my total. 👍🏽

NedS

Skylark83 said:

calcotti said:

Skylark83 said: i'm much happier just reinvesting the £25 and alerting universal credit to a change in my total capital.

You only need to tell them if your total capital crosses a £250 threshold. They don't need to know every little change.

Thanks, I'll be sure to keep an eye on my total. 👍🏽

Be aware that your total includes ALL capital, including premium bonds, bank account balances, savings accounts, ISAs, cash and any other assets you (and your partner) have, on the last day of each Assessment Period, not just your premium bonds balance.

calcotti

NedS said: Be aware that your total includes ALL capital, including premium bonds, bank account balances, savings accounts, ISAs, cash and any other assets you (and your partner) have, on the last day of each Assessment Period, not just your premium bonds balance.

Going by opening post I think OP knows this 

Skylark83 said: I'm on Universal Credit and I have capital that is over £6000, but under £16000...I have informed universal credit about my total capital and they have deducted my benefit accordingly....Part of my capital includes savings in Premium Bonds.  

shortman_J

Hiya. So once I have over £250 in government bonds I have to tell universal credit? Is it classed as income or assets? 

HillStreetBlues

shortman_J said:

Hiya. So once I have over £250 in government bonds I have to tell universal credit? Is it classed as income or assets? 

It's capital, you only need to declare if your capital is over £6k at the end of your assessment period.

peteuk

shortman_J said:

Hiya. So once I have over £250 in government bonds I have to tell universal credit? Is it classed as income or assets? 

In this context, as the OP has over £6000 capital, they need to re-report every time they enter the next £250 bracket.

eg declares £6255 but then wins £100 on bonds.  His capital is £6355 but doesnt need to report this as the deduction is the same.    Two months later another £100, capital now £6455, same applies.   Two months later another £100 now the capital is over £6500 it needs declaiming as the reduction is increased by another £4.35.