Do I have to report this change to Universal Credit?

Jack_bauer24

Hi, 

I need some advice, next week my dad is lending me 2 thousand as a loan, but just wondering, do I need to notify Universal Credit about this amount? I asked many people on UC groups on Facebook and some are saying yes, I need to declare it and if I don't, I could get in trouble with DWP and some saying I don't have to. I am confused. 

Any advice would be great, thank you.

Spoonie_Turtle

You only need to declare it if your savings are (or will be, once you receive it) over £6,000. 

It's not any type of income for UC purposes, just capital.

Jack_bauer24

Spoonie_Turtle said:

You only need to declare it if your savings are (or will be, once you receive it) over £6,000. 

It's not any type of income for UC purposes, just capital.

Ok thanks and no, I don't have any savings for that amount or higher. I was just curious and confused if I should report it or not. 

HillStreetBlues

As Spoonie stated  no need to report. Actually it's much better not to report it, as could save a needless check.

Numberwang_2

HillStreetBlues said:

As Spoonie stated  no need to report. Actually it's much better not to report it, as could save a needless check.

Further to your comments, a new section has appeared on the UC Statements. As below

Money, savings and investments

minus‑ £0.00

We have taken £0.00 off your Universal Credit payment because you have money, savings and investments of £1200.00

The first £6,000 of your money, savings and investments does not affect your payment. If you have over £6,000 up to £16,000, every £250 reduces your Universal Credit by £4.35. For any remaining amount that is not a complete £250, a further £4.35 is also deducted.

You told us you have £1,200.00 You must tell us if this changes so that we can pay you the correct amount on time.

Based on the above this implies you must tell them of any change, not just if it goes above £6000?

Spoonie_Turtle

Numberwang_2 said:

HillStreetBlues said:

As Spoonie stated  no need to report. Actually it's much better not to report it, as could save a needless check.

Further to your comments, a new section has appeared on the UC Statements. As below

Money, savings and investments

minus‑ £0.00

We have taken £0.00 off your Universal Credit payment because you have money, savings and investments of £1200.00

The first £6,000 of your money, savings and investments does not affect your payment. If you have over £6,000 up to £16,000, every £250 reduces your Universal Credit by £4.35. For any remaining amount that is not a complete £250, a further £4.35 is also deducted.

You told us you have £1,200.00 You must tell us if this changes so that we can pay you the correct amount on time.

Based on the above this implies you must tell them of any change, not just if it goes above £6000?

It does seem to imply that, but:
- the purpose of notifying changes is to make sure they get the payments correct
- anything below £6,000 does not affect your payment
- therefore there is no need to notify of changes below £6,000.

Brie

What springs to my mind is why dad is lending you the money?  Is it something that he could pay for you directly?  Say you need the ££ for a car, if he pays the £2k to whomever you're buying the car from you won't have a change to your savings at any point.  Others will no doubt say whether this approach is dodgy.

HillStreetBlues

Brie said:

What springs to my mind is why dad is lending you the money?  Is it something that he could pay for you directly?  Say you need the ££ for a car, if he pays the £2k to whomever you're buying the car from you won't have a change to your savings at any point.  Others will no doubt say whether this approach is dodgy.

It's not dodgy but pointless as capital under £6k.
If over £6k then that would be the way to go.

HillStreetBlues

Numberwang_2 said:

HillStreetBlues said:

As Spoonie stated  no need to report. Actually it's much better not to report it, as could save a needless check.

Further to your comments, a new section has appeared on the UC Statements. As below

Money, savings and investments

minus‑ £0.00

We have taken £0.00 off your Universal Credit payment because you have money, savings and investments of £1200.00

The first £6,000 of your money, savings and investments does not affect your payment. If you have over £6,000 up to £16,000, every £250 reduces your Universal Credit by £4.35. For any remaining amount that is not a complete £250, a further £4.35 is also deducted.

You told us you have £1,200.00 You must tell us if this changes so that we can pay you the correct amount on time.

Based on the above this implies you must tell them of any change, not just if it goes above £6000?

Sadly the DWP can be fond of moronic statements.
Every time you buy something with cash or with a debit card your capital changes or a DD comes out of your bank account capital changes. If a person took notice of that statement then a person would be forever reporting fluctuations of capital.

Newcad

HillStreetBlues said:

Sadly the DWP can be fond of moronic statements.

I agree - it's just yet another poorly worded statement from the DWP.

To be correct what it should say is:

"You told us you have £1,200.00 You must tell us if this increases to above £6,000 so that we can pay you the correct amount on time."

Much of the confusion with various benefits that I've seen over the years is entirely due to poorly/wrongly worded DWP statements such as that one.

Auti

Just being me and my different way of understanding I did not read it that way. I read that if your savings increase you must tell them. Your working money is not savings is not capital until the end of the relevant assessment period - eg pip received on 1st of month to be spent by time next months is received but during that month you do not count it as savings and the same for all other benefit/ other income that is regular. It is only savings if you have some left when the next payment is due.

You also do not count COL payments or (for a year since receipt) money owed by DWP and paid by them as a lump sum as that is not counted as savings during that time.

I think I have got it right but really happy to have it confirmed or not please. If I have, just for once, something has been written in a way I understand