UC Migration with Savings

Rosie222

I have been scheduled an apppointment at my local job centre to present my bank/savings statements following the migration notice to move from Tax Credits to Universal Credits.  I have worked and saved hard and am lucky enough have over the £16k threshold for UC (which I have declared).  What is the purpose of my presenting these documents if I am no longer entitled to any benefits?  Would I receive a run-on for a few months?  Can anyone tell me what is expected of me if this does happen.  I am a single parent of a 9 year old and work 21 hours a week.
Thanks

stu12345_2

I always thought the max savings you can have is £6000

Rosie222

stu12345_2 said:

I always thought the max savings you can have is £6000

I think the amout you get goes down if you have over £6000 up to a max of £16,000.

Torry_Quine

I thought if you were migrating rather than choosing to claim UC you had a year's grace before savings were counted

peteuk

You don't get the transition protection if 

• choose to claim universal credit, or
• claim universal credit because they have a change of circumstances that brings their tax credit award to an end but and they need to make a fresh claim for support, or
• need to claim support that has now been replaced by universal credit (for example, help with rent – although there are some exceptions where housing benefit can still be claimed), or
• don’t renew their tax credit claims, HMRC can’t reinstate their late renewal and they need to make a fresh claim for support, or
• are issued with a migration notice by DWP but don’t claim universal credit by the deadline and no extensions are agreed.

As the op states she is has migrated so there will be an element of transition protection.  There are other rules that come into effect with regards to where the funds come from which allows them to be disregarded for a period of time.  

Newcad

For those migrating from Tax Credits to UC there is a 12 months disregard protection which applies to the savings/capital limit of £16,000 above which UC is not normally payable.

As there is no equivalent limit in Tax Credits then for those migrating from TC's to UC that £16K savings limit will be disregarded (ignored) for the first 12 months.

If you still have above £16K in savings after that 12 months then your UC will stop when the 12 months is up.

During that 12 months any savings that you have between £6K and £16k will reduce UC payments by £4.35 for each £250 or part of £250 between £6K and £16K.

eg. Savings of £6000.01 = £4.35 deducted, savings of £6250.01 = £ 8.70 deducted, and so on up to £15,750.01 and £174.00 deducted. Normally UC entilement would end at £16K.

The transitional provisions for the entitlement disregard also state that any savings amounts higher than £16K are to be disregarded when calculating UC amounts, so the most that can be deducted for savings is that £174.00

The UC Standard Allowance for a single person over 25 is currently £368.74 and so deducting £174.00 would still leave £194.74 of the Standard Allowance payable each month, plus any other UC Elements due. (eg Child Element).

The amount of UC payable will also depend on if there are other deductions to take into account, and with a migration from (Working) Tax Credits you can expect there will be a deduction for wages income at the 55p taper rate.

So although you have savings above £16k, as you are migrating from Tax Credits you may/should still be entitled to some UC for at least the first 12 months.

tomtom256

It's being done wrong. If it's part of the managed migration, they don't need to see evidence and the 12 month protection will just be awarded.

Newcad

No it is being done correctly and according to the procedure, they need to see the bank/savings statements to confirm how much deduction for savings should/will be taken from the UC payments each month.

NedS

I agree - as part of the Move to UC process, they will collect evidence of capital and disregard the amount above £16,000 for a maximum of 12 months. Tariff income rates (£174/month) will apply for the capital between £6000 and £16,000

tomtom256

Newcad said:

No it is being done correctly and according to the procedure, they need to see the bank/savings statements to confirm how much deduction for savings should/will be taken from the UC payments each month.

They do not need to see any evidence for a managed migration claim, they verify what has been declared and put special wording in the journal and on to the completed verification action.
There is a spotlight the jobcentre should follow, the only caveat would be if the capital is a second property, as they would need an A64A completing.

Rosie222

Thank you for all your comments, I have presented the documents as requested and have been granted 12 months disregard protection.