Universal Credit - How Often to Update Savings?

KCJA1989

Hi all,

We have recently (more than likely temporarily) exceeded the £6,000 limit in capital/savings, how often is it recommended to update this as a change of circumstance?

We were advised years ago (when the claim started) that it was pointless to update amounts under £6,000, as this was all disregarded (I suppose one could theoretically update this after every transaction).

This is the first time this has happened and just wondered, is it beneficial to only update each time the amount either goes back under the £6,000 threshold or if and when any £250 increments are passed? This isn't likely, it's much more likely after bills/expenses we'll be back under the threshold (which I assume I report as being back under), but would be good to know for reference. For example, if capital went from £6,249 to £6,251, that would need to be reported as the increment was breached, as opposed to £6,251 to £6,499, would that not need to be reported as that change in capital wouldn't constitute a reduction?

I hope I've made that somewhat clear, just trying to wrap my head around it! Thanks.

Spoonie_Turtle

UC is calculated based on your circumstances on the last day of the assessment period.  So if you go up or down any £250 increments above £6,000 within an assessment period, you need to update them on the last day.

KCJA1989

Ah, okay. Thanks a lot, that makes sense!

Feel stupid for reporting a change earlier on now and leaving my work coach a note on the matter.

So I would only need to update things on a monthly basis?

poppy12345

KCJA1989 said:

So I would only need to update things on a monthly basis?

Yes on the last day of your assessment period.

HillStreetBlues

KCJA1989 said:

Hi all,

We have recently (more than likely temporarily) exceeded the £6,000 limit in capital/savings, how often is it recommended to update this as a change of circumstance?

We were advised years ago (when the claim started) that it was pointless to update amounts under £6,000, as this was all disregarded (I suppose one could theoretically update this after every transaction).

This is the first time this has happened and just wondered, is it beneficial to only update each time the amount either goes back under the £6,000 threshold or if and when any £250 increments are passed? This isn't likely, it's much more likely after bills/expenses we'll be back under the threshold (which I assume I report as being back under), but would be good to know for reference. For example, if capital went from £6,249 to £6,251, that would need to be reported as the increment was breached, as opposed to £6,251 to £6,499, would that not need to be reported as that change in capital wouldn't constitute a reduction?

I hope I've made that somewhat clear, just trying to wrap my head around it! Thanks.

Remember UC is income in the period it is paid.
For example
If UC is £1000 in a month and you have £6.5k in money at end of the assessment period  it works out that you have £5.5k in capital & £1k income  so nothing needs reporting.

KCJA1989

@poppy12345: That's great, thanks for clarifying!

@HillStreetBlues: Thanks for the information, didn't know about that either! We have three accounts, one for the main in/out transactions, one for the bills and then a savings account. How does that work with regards to income? Say, for example, we had £5,700 in the savings account, £500 in the bills and I'd just received £200 income for the week in the main account, is the income disregarded? 

poppy12345

All moey in all bank accounts are classed as savings at the end of the period in which your benefits were paid for. As ylou're claiming UC then this is paid monthly so if your assessment periods are for example 15th to 14th of every month then your UC payment is not classed as savings until the 14th of the month (if there's anything left.

Spoonie_Turtle

poppy12345 said:

All moey in all bank accounts are classed as savings at the end of the period in which your benefits were paid for. As ylou're claiming UC then this is paid monthly so if your assessment periods are for example 15th to 14th of every month then your UC payment is not classed as savings until the 14th of the month (if there's anything left.

Unspent income is classed as savings in the next payment period.

HillStreetBlues

@HillStreetBlues: Thanks for the information, didn't know about that either! We have three accounts, one for the main in/out transactions, one for the bills and then a savings account. How does that work with regards to income? Say, for example, we had £5,700 in the savings account, £500 in the bills and I'd just received £200 income for the week in the main account, is the income disregarded? 

On your example you would have £6,200 capital and £200 income,  so a deduction of £4.35 for that month.

KCJA1989

Thanks for all the fantastic advice everyone, I didn't know half of this and it's been made much clearer!

When we started our claim years back, our capital/savings was put at £0. I've never updated this as it was always under the £6,000 threshold, should we have updated this and/or should we update this in the future when the amount is under £6,000 (this will likely be the case, it's just been a case of Universal Credit payment combined with a first wage slip has taken it artificially high)? Was always under the assumption that under the threshold is irrelevant, but I suppose the case could be made that nothing has been updated in so long. Also, will evidence be needed i.e. bank statements?

poppy12345

Savings of under £6,000 are ignored, so you do not need to report them.