Deprivation of capital - UC

I have to migrate to UC by the beginning of April.  I currently have over 6k in savings as I took out a loan a while ago for some home improvements which are taking us ages so we have some of the cash left.  If I make some purchases before I do the migration application, will that be seen as deprivation of capital? What about if I pay the loan off?  Thanks

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  • Newcad
    Newcad Posts: 782
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    edited 2 February at 5:25PM
    Either or both would/should be fine. particularly if the purchases are a part of the home improvements anyway.
    Paying back all or any part of a loan is not deprivation under UC rules. (It can be in older benefits but that doesn't apply here).
  • marcia_
    marcia_ Posts: 1,467
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     Surely the savings will not matter as the op will get transitional protection? 
  • TELLIT01
    TELLIT01 Posts: 16,231
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    The upper limit for savings is £16k.  Over £6k deductions are made but do not stop UC entitlement.
  • Newcad said:
    Either or both would/should be fine. particularly if the purchases are a part of the home improvements anyway.
    Paying back all or any part of a loan is not deprivation under UC rules. (It can be in older benefits but that doesn't apply here).
    That's great thank you.  
  • Newcad
    Newcad Posts: 782
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    edited 2 February at 6:45PM
    marcia_ said:
     Surely the savings will not matter as the op will get transitional protection? 
    Savings of between £6k & £16k will still reduce the amount of UC that is payable.
    TP applies to the 'top line' entitlement at migration, any standard UC deductions due will still be made from that top line.
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