UC and Savings

Lady24

Hello All,

Need some advise on my situation please.

I currently get UC as is just me and my child living together in my own flat, in 2027 I will be selling my flat and buying a house with my partner.

I have a plan to save money, but the problem is by the time I sell up and move I will have almost 26.500 saved and I know anything over 6K will make my UC stop  while I save up and I really cannot afford this.

What would be the best way to go round this while I'm in the process of saving so my UC doesn't stop?

Thank you!

kaMelo

Your UC will be reduced with savings of £6000 or more but it won't stop unless you reach £16000. At that point your eligibility to all means tested benefits would cease.

Have you received any payments that may be disregarded from this total such as cost of living payments?

As to ways around this, other than putting money in a pension, no. (or at least none that aren't dodgy or require total trust in someone else)

maisie_cat

Would it be possible to overpay your mortgage so that when you sell you have more equity that will be disregarded?

TELLIT01

Can you clarify whether you mean you will have £26.5k including the sale of the flat, or excluding that?

Lady24

@TELLIT01 excluding the sale of my flat

Lady24

@maisie_cat I have a shared ownership, I own 40% but dont really want to overpay as I need that money that I plan on saving for either the new house with my partner etc..

peteuk

To clarify your UC will be affected as follows
Capital above £6K - your UC will be reduced by £4.35 for each £250 or part of therein above £6K
Capital above £16K - your UC will stop

So  if you have £6001 your UC will reduce by £4.35, if you have £6251 your UC will reduce by £8.70 etc etc. 

When you sell your flat the amount you have is disregarded for 6 months (this can be extended) if you can prove you’re buying another property. 

The minute you move in with your partner your UC will become a joint claim. 

The point of this being is, if you have over £16K in capital then you can afford to live without UC. Thats why the £16K limit is there, 

Grumpy_chap

Lady24 said:

@maisie_cat I have a shared ownership, I own 40% but dont really want to overpay as I need that money that I plan on saving for either the new house with my partner etc..

I think the idea was that overpaying the mortgage would increase your equity when you sell but does not result in savings in the meantime.