Savings and benefits

calcotti

kaMelo said:

The only way I can see is to reduce savings below £16000 prior to migration, 

Or during the 12 month protection period.

What isn’t clear, to me at least, is how deprivation of capital rules will be applied

themoomins

kaMelo said:

jobe1972 said:

I went and read all the rules so think I now know how it works.. If when I swap over and i have 20k banked they will ignore the 4k for the first year providing the amount I have saved doesnt drop below 16k anything above that will be ignored for a year at least . then the rules will apply for the 6k to the 16k so would lose £174 per month if I continued to have 16k plus in the bank. once the savings then drop below 16k the amount of UC would then be adjusted each period assume per month ..until eventually savings dropped below the 6k mark then UC would be award at its full amount of what I would be entitled too

Not quite, the capital disregard is twelve months maximum. If after twelve months you still have in excess of £16000 then all means tested benefits will end.

Yes this is what I thought. And I bet if you did have £20k, got the TP and then don't have £20k at the end so you still qualify, you get into trouble for spending it and possibly still lose your UC if they deem you blew it to keep qualifying.

sammyjammy

themoomins said:

Yes this is what I thought. And I bet if you did have £20k, got the TP and then don't have £20k at the end so you still qualify, you get into trouble for spending it and possibly still lose your UC if they deem you blew it to keep qualifying.

Of course it would and quite right too as that would potentially be deprivation of capital.

jobe1972

Thankyou all .. I was looking to get reasonable interest on my savings and I found a fixed rate sainsbury account only thing is what ever term I pick the money can not be withdrawn until the term is up ..so is that still classed as savings if its locked away for 5 years? for it to be classed as savings It has to be easy accessible to use 

kaMelo

Yes, savings are savings wherever they may be. The only place where they don't count them is in a pension fund

Spoonie_Turtle

kaMelo said:

Yes, savings are savings wherever they may be. The only place where they don't count them is in a pension fund

To be really clear, this means an approved, official pension scheme, not simply an ISA or some other savings account that people decide to put away for their retirement.

UKSBD

Spoonie_Turtle said:

kaMelo said:

Yes, savings are savings wherever they may be. The only place where they don't count them is in a pension fund

To be really clear, this means an approved, official pension scheme, not simply an ISA or some other savings account that people decide to put away for their retirement.

Would transferring any savings you have in to an approved, official pension scheme  be classed as a deprivation of capital?

Spoonie_Turtle

UKSBD said:

Spoonie_Turtle said:

kaMelo said:

Yes, savings are savings wherever they may be. The only place where they don't count them is in a pension fund

To be really clear, this means an approved, official pension scheme, not simply an ISA or some other savings account that people decide to put away for their retirement.

Would transferring any savings you have in to an approved, official pension scheme  be classed as a deprivation of capital?

During the 12 month disregard, I have no idea. 

Before being invited to claim UC, quite possibly - for DoC one of the main factors has to be intention to increase entitlement to benefits … which in the context of the thread, is exactly what this is.  

To go back to another point you made

jobe1972 said:

for it to be classed as savings It has to be easy accessible to use 

The valuation of savings/capital accounts for any withdrawal penalty.  So if some are locked away, there no doubt would be a penalty if you absolutely had to withdraw, thus the value of those savings would take the penalty into account.

NedS

UKSBD said:

Spoonie_Turtle said:

kaMelo said:

Yes, savings are savings wherever they may be. The only place where they don't count them is in a pension fund

To be really clear, this means an approved, official pension scheme, not simply an ISA or some other savings account that people decide to put away for their retirement.

Would transferring any savings you have in to an approved, official pension scheme  be classed as a deprivation of capital?

You can only pay into a pension scheme what you earn (HMRC rules), so you could pay your salary into your pension and then live off your savings. That way you have not payed any of your savings into your pension scheme.