universal credit.

magicsnooker

Hi everyone. I was claiming universal credit but payment was stopped as I had savings over the limit. I lived off my savings and have now signed on universal credit again a year later.
They have asked me where have my savings gone. Obviously I lived off my savings to live on.
Are universal credit allowed to ask where they have gone when I was not claiming any benefits for a year?

Brie

They want to make sure that you didn't just blow the lot to enable you to start claiming again.  From a  tax payer's point of view it seems a good policy though obviously it's a bit nosy from your side.  

Are they allowed to see your bank statements?  Frankly I'd show them the last 3 months of those along with a general account of what you spent some of the money on.  Like "bought new tires for the car", "bought new freezer as old one broke and then topped up with food".  None of those sorts of things should cause any problems.  If you say you took a few round the world cruises, well, that's a different story.

HillStreetBlues

magicsnooker said:

Are universal credit allowed to ask where they have gone when I was not claiming any benefits for a year?

Yes, they will want to look to see if there is any Deprivation of Capital

sammyjammy

If they are asking it implies that the reduction in the savings over the time you haven't claimed isn't a reasonable amount to have spent on "living", is that the case?

SirSteven1986

I’d say it’s nothing to do with them is it? Say u bought a car now your back under the threshold and eligible again? 

poppy12345

SirSteven1986 said:

I’d say it’s nothing to do with them is it? Say u bought a car now your back under the threshold and eligible again? 

It's everything to do with them because UC is means tested. If the OP spent the money in a very short space of time then yes questions will be asked. 

SirSteven1986

poppy12345 said:

SirSteven1986 said:

I’d say it’s nothing to do with them is it? Say u bought a car now your back under the threshold and eligible again? 

It's everything to do with them because UC is means tested. If the OP spent the money in a very short space of time then yes questions will be asked. 

So say got drunk and lost lot in casino they could say no not helping you? At that time you reapply surely can only go off situation your in there and then 🤷‍♂️

poppy12345

SirSteven1986 said:

poppy12345 said:

SirSteven1986 said:

I’d say it’s nothing to do with them is it? Say u bought a car now your back under the threshold and eligible again? 

It's everything to do with them because UC is means tested. If the OP spent the money in a very short space of time then yes questions will be asked. 

So say got drunk and lost lot in casino they could say no not helping you? At that time you reapply surely can only go off situation your in there and then 🤷‍♂️

Yes a decision maker can decide that you've deliberately deprived yourself of capital and could refuse your claim. 

magicsnooker

Thank you everyone. I will just send statements in for proof. 

Muttleythefrog

SirSteven1986 said:

poppy12345 said:

SirSteven1986 said:

I’d say it’s nothing to do with them is it? Say u bought a car now your back under the threshold and eligible again? 

It's everything to do with them because UC is means tested. If the OP spent the money in a very short space of time then yes questions will be asked. 

So say got drunk and lost lot in casino they could say no not helping you? At that time you reapply surely can only go off situation your in there and then 🤷‍♂️

Circumstances prior to claim can be considered pertaining to deprivation of capital. They can determine you still are to be considered to have savings you've spent.

Hopefully in this case after seeing statements they'll see regular spending has resulted in the decline of the savings enabling entitlement.

jojaca

Blowing your money in a casino could be classed has ok if you have a gambling addiction, but a family holiday to Florida could seen to be deprivation of capital, decided by some minimum wage agent on the other end of the phone.