Going over £6k savings with UC

bookdragon7

Hello all,

I got a letter from UC today stating that they had underpaid me for 18 months due to (I think) putting me in the wrong work capability group for that time. Completely unexpected, but yay! The amount they say they'll pay me will put me well over the £6k savings threshold, which means the rest will count as income (£4.35 in 'income' per £250 in savings). My income ceiling before they start subtracting 63p per £1 is £293 (due to the work capability group I'm in). This is higher than the 'income' from my extra savings.
Am I correct in thinking that I will not have my UC payments reduced?

Thanks in advance for your advice!

poppy12345

Any backdated money that is owed to you is disregarded from savings for 1 year. So unless your savings were more than £6,000 before you received the money then there's nothing to report.

poppy12345

bookdragon7 said:

Hello all,

I got a letter from UC today stating that they had underpaid me for 18 months due to (I think) putting me in the wrong work capability group for that time. Completely unexpected, but yay! The amount they say they'll pay me will put me well over the £6k savings threshold, which means the rest will count as income (£4.35 in 'income' per £250 in savings). My income ceiling before they start subtracting 63p per £1 is £293 (due to the work capability group I'm in). This is higher than the 'income' from my extra savings.
Am I correct in thinking that I will not have my UC payments reduced?

Thanks in advance for your advice!

For future reference though, this is not quite how the deductions work  when you have savings.  For every £250 or part there of over £6,000 there's a £4.35 deduction in your UC payments.

The £293 you mention is the work allowance, which applies to those that work and receive earnings during their assessment period. It has nothing to do with any savings.