Not entitled to Universal Credit because I have savings.

Molly4

Good Afternoon

I have had to medically retire from work due to serious health problems. I do not qualify for a State Pension for another 3 years. I currently live off a small work pension and get contribution based ESA(Employment Support Allowance) which may stop in 6 months time and that's my total income. 

I get my prescriptions for free at present because I am over 60 and I am currently on 4 different medications a day.  I am extremely worried about the possibility of having to pay for my prescriptions in the future. I do not qualify for help with dental treatment or any other health costs. I am already choosing whether to eat or heat. 

Based on my low income I would probably qualify for Universal Credit which would in turn open the door for me to claim other benefits like housing benefit and help with my medical costs. But because I have savings over £16,000 I am not entitled to claim Universal Credit. 

Why is it that people who earn up to £50,000 a year can get Universal Credit and yet I can't? My savings, which are actually my earnings that I have not spent, are 3 times less than the £50,000 earnings limit. It seems very unfair that others can get Universal Credit whilst earning up to £50,000 a year and have savings of just under the £16,000 threshold. 

Is there any way I can get around this? I haven't actually applied for Universal Credit yet because it clearly states you can't get it if your savings are over £16,000. Should I apply and then appeal when it is rejected? 

p00hsticks

I get my prescriptions for free at present because I am over 60 and I am currently on 4 different medications a day.  I am extremely worried about the possibility of having to pay for my prescriptions in the future.

Why so worried ? Assuming you are in England don't believe there is any suggestion at present that over-60's will be asked to pay for prescriptions in the near future. 

Molly4 said:

 I am already choosing whether to eat or heat. 

I'm afraid the answer is that you will need to dip into your savings to pay for food and fuel - if your savings were for a rainy day then that rainy day has arrived. When your savings go down to £16,000 then you can apply for UC and wil lbe eligible for other schemes such as the Low Income Scheme to help with dental treatment. 

lisyloo

Sorry to hear of your stressful situation.

Someone earning £50k could be supporting a wife and family and not have a great deal of disposable income, so none of that money is seen to be “available” and I presume the £50k is gross of tax and national insurance so they won’t get that anyway.
your savings in excess of £16k are seen to be available for you to live on

are you aware you can get an annual prescription for £108.10 (presuming you do not qualify medically).

I don’t think there is any point you applying if you don’t meet the basic criteria - sorry.
hoepfully others will be along but if I don’t think there is discretion on that.

poppy12345

Molly4 said:

Is there any way I can get around this? I haven't actually applied for Universal Credit yet because it clearly states you can't get it if your savings are over £16,000. Should I apply and then appeal when it is rejected? 

There's no point in applying if you have savings over the maximum amount and appealing that decision will be a complete waste of your time and everyone else's because you will lose that appeal.

I don't understand why you're choosing heat over eat when you have that amount of savings, you're depriving yourself for no reason at all.

UC entitlement is based on personal circumstances and is not based on annual earnings. It's earnings received each month that count. If someone has children to feed then yes, they may well be entitled. You can't compare yourself to someone else because all of our circumstances are different.

Thankfully, you're claiming New style ESA which isn't means tested. If placed into the Support Group your payments will increase and your money will continue for as long as you remain in the Support Group.

Once your savings go below £16,000 then you can claim UC but your ESA and pension will be deducted £1 for £1 from any UC entitlement. There will also be a deduction of £4.35 per month for every £250 over £6,000.

Are you currently receiving either DLA or PIP? If not then have a look at claiming PIP, it's not means tested so savings etc doesn't affect it. Whether you're entitled to anything ill totally depend on exactly how your conditions affect you against the PIP descriptors. It's not awarded based on any medication taken or any diagnosis. See link. https://pipinfo.net/

sheramber

which are actually my earnings that I have not spent,

Now is the time to spend them. Just as you used your earnings for your expenditure when you were working.

calcotti

Molly4 said:

... get contribution based ESA(Employment Support Allowance) which may stop in 6 months time..

Have you had the Work Capability Assessment yet? Your ESA would stop after 12 months if you have Limited Capability for Work and are in the ESA WRA. If you are in the Support Group it continues until such time as another Work Capability assessment decides you not longer qualify for the Support Group.

Molly4 said:.. I would probably qualify for Universal Credit which would in turn open the door for me to claim other benefits like housing benefit 

You wouldn't be claiming housing Benefit, you would be claiming help with rent as part of your Universal Credit claim (unless you are in supported accommodation in which case Housing Benefit would apply).

Molly4 said:

..My savings, which are actually my earnings that I have not spent, are 3 times less than the £50,000 earnings limit. 

Don't know what you mean by that. There s no fixed earnings limit for UC. The earnings level at which a claimant will have nil entitlement depends on their personal circumstances. A £50,000 threshold is much higher than would apply to most claimant so I don't know where you have plucked that figure from.

calcotti

lisyloo said:..are you aware you can get an annual prescription for £108.10 (presuming you do not qualify medically).

There is no need for that as OP gets free prescriptions due to being over 60.

TELLIT01

The benefits system can seem extremely unfair, and it may actually be unfair.  Unfortunately that does change the reality that "It is what it is".  The system is not likely to change any time soon.

Spoonie_Turtle

Something for you to think about: what are/were your savings for?  Is that more important than your immediate need for basic necessities such as food AND heating?  [Rhetorical questions, please don't feel obliged to answer here unless you want to.]

If your savings are just above £16,000 (as you refer to them being one third of £50,000) then I don't understand your reluctance to use a small amount to live for a little while until they fall below the £16,000 threshold.

But, please take note of this important paragraph of poppy's response.  Depending on how much pension you receive and what your maximum entitlement to UC would be (which on turn depends on your circumstances including whether you be be entitled to the housing element and if so, how much), there may be nil payable until your savings have gone down further - UC is a means-tested benefit, and savings and income-replacement benefits including pensions are deemed to be means to live.

poppy12345 said:

Once your savings go below £16,000 then you can claim UC but your ESA and pension will be deducted £1 for £1 from any UC entitlement. There will also be a deduction of £4.35 per month for every £250 over £6,000.

You can use benefit calculators, putting in different amounts for your savings until you find out the level of them where you would be entitled to some help from UC.

Molly4

Spoonie_Turtle said:

Something for you to think about: what are/were your savings for?  Is that more important than your immediate need for basic necessities such as food AND heating?  [Rhetorical questions, please don't feel obliged to answer here unless you want to.]

If your savings are just above £16,000 (as you refer to them being one third of £50,000) then I don't understand your reluctance to use a small amount to live for a little while until they fall below the £16,000 threshold.

But, please take note of this important paragraph of poppy's response.  Depending on how much pension you receive and what your maximum entitlement to UC would be (which on turn depends on your circumstances including whether you be be entitled to the housing element and if so, how much), there may be nil payable until your savings have gone down further - UC is a means-tested benefit, and savings and income-replacement benefits including pensions are deemed to be means to live.

poppy12345 said:

Once your savings go below £16,000 then you can claim UC but your ESA and pension will be deducted £1 for £1 from any UC entitlement. There will also be a deduction of £4.35 per month for every £250 over £6,000.

You can use benefit calculators, putting in different amounts for your savings until you find out the level of them where you would be entitled to some help from UC.

My savings were for emergencies for example house repairs that are not covered by house or building insurance. A number of years ago I couldn't claim on my building insurance for repairs to my roof caused by a storm as the wind speed during the storm was a few MPH less than the limit set. I can't remember the exact figures but for example you could claim if the wind speed was 70 MPH and the storm that caused my damage was only 65 MPH. 

Molly4

calcotti said:

Molly4 said:

... get contribution based ESA(Employment Support Allowance) which may stop in 6 months time..

Have you had the Work Capability Assessment yet? Your ESA would stop after 12 months if you have Limited Capability for Work and are in the ESA WRA. If you are in the Support Group it continues until such time as another Work Capability assessment decides you not longer qualify for the Support Group.

Molly4 said:.. I would probably qualify for Universal Credit which would in turn open the door for me to claim other benefits like housing benefit 

You wouldn't be claiming housing Benefit, you would be claiming help with rent as part of your Universal Credit claim (unless you are in supported accommodation in which case Housing Benefit would apply).

Molly4 said:

..My savings, which are actually my earnings that I have not spent, are 3 times less than the £50,000 earnings limit. 

Don't know what you mean by that. There s no fixed earnings limit for UC. The earnings level at which a claimant will have nil entitlement depends on their personal circumstances. A £50,000 threshold is much higher than would apply to most claimant so I don't know where you have plucked that figure from.

****Yes I've had the Work Capability Assessment. I was awarded Contribution based ESA for one year which expires in May 2022. I am unsure if I can apply for it again after that time. I applied for ESA to get NI credits. If I had been awarded Income based ESA I would have qualified for other help and benefits. I do not know much about the benefit system as I have never claimed anything during my working life until now.  I thought it was called Housing Benefit but it would be help with my Council Tax I would hope to get.****

**** You state there is no earnings limit for UC. If people are allowed to earn up to £50,000 then my understanding is that £50,000 is an earnings limit. For me to reach this I would need to have over 3 x my current savings amount. ****