£6000 in savings

R200

When is the £6K threshold going to go up with inflation? It’s been six grand for a long time look how much rents have gone up.


we have only £5000 in savings but when UC comes in the same sort of time as wages for the month it takes us over for a short time until the £2500 rent is due.

will this be a problem should we declare that we go over £6k for a short time every month until the rent is paid?

MattMattMattUK

R200 said:

When is the £6K threshold going to go up with inflation? It’s been six grand for a long time look how much rents have gone up.

Probably never, the savings limit is for the taxpayer's benefit not the UC recipient, so allowing it to fall in real terms is an aim of government, not an accident of inflation.

R200 said:

we have only £5000 in savings but when UC comes in the same sort of time as wages for the month it takes us over for a short time until the £2500 rent is due.

will this be a problem should we declare that we go over £6k for a short time every month until the rent is paid?

It would not be an issue as monthly cash flow is not savings.

poppy12345

Your earnings and UC payment is not treated as capital until the end of the following assessment period in which it was paid for. 

R200

Thabks so much

nannytone_2

Just take another holiday to marrakesh

SimonFF

MattMattMattUK said:

.

R200 said:

we have only £5000 in savings but when UC comes in the same sort of time as wages for the month it takes us over for a short time until the £2500 rent is due.

will this be a problem should we declare that we go over £6k for a short time every month until the rent is paid?

It would not be an issue as monthly cash flow is not savings.

Can you please expand on the concept of " monthly cash flow is not savings." I would have though that anything that is on the bank account counts as savings.

SimonFF

poppy12345 said:

Your earnings and UC payment is not treated as capital until the end of the following assessment period in which it was paid for. 

What do you mean by that? Sorry for being dense.

kaMelo

Whatever you receive in salary/wages/benefits /pension is classed as income in the assessment period in which you receive it. 

Any of that income you have left at the end of that assessment period only becomes capital going forward front the next assessment period.

Rinse and repeat

sheramber

You recieve £2000  for your assessment period- that is your income.

You pay your bills and my the end of the assessment period you have £200 left. That £200 then becomes capital.

You can keep them separate by having one bank account to receive  benefit and pay bills.

Attthe end of the assessment period transfer what is left over into a separate account. 

That way you be able see the two amounts separately.

Sea_Shell

Also AIUI, any cost of living additional payments that you've received can be disregarded.

So worth checking how much of those (if any) you've received over the last couple of years.

Happy to be corrected though, but I think that's how it works for pension credit, if UC is the same.

R200

So if you have around £5k savings and when your £3K UC payments come in, and your £1K wages that doesn’t count if most of it goes on rent and living costs?

some months a little left over some months none and have to dip into the £5k savi

As long as the £5k part doesn’t go over £6k?