"Universal Credit: money, savings and investments" - New Guidance

Newcad

There is a new guide from the DWP issued yesterday, 5 Sept 2024 -
"Universal Credit: money, savings and investments"
https://www.gov.uk/guidance/universal-credit-money-savings-and-investments
It helps answer some of the tricker questions that we see, particularly about what is and isn't counted, and gives a handy place to point questioners to.

Auti

It does not mention the cost of living payments so are they now counted? 

HillStreetBlues

A couple of issues I have

What we take into account

money that belongs to someone else, but is in your name

That's legally incorrect and misleading. If you can show you are not the beneficial owner then it's discounted.

Your income is counted as savings if it has not been spent by the end of the assessment period after the one in which it was received. 

Example

Katie’s assessment period for Universal Credit runs from the 8th of the month to the 7th of the next month.
Katie was paid a salary of £2,000 on 1 April. This was within her 8 March to 7 April assessment period.
By the end of her next assessment period (8 April to 7 May), she has spent £1,500 of this income.
For the next assessment period (8 May to 7 June) she should report the saved £500 as part of her savings.

This is misleading, as gives impression that the change in capital in that situation always needs reporting, but that's not correct. It would only apply if capital was over £6k  and that any deduction would be different to the previous AP.

Newcad

The CoL payments are regarded indefinitely, so probably should be mentioned.
(Perhaps as they were meant to be used towards living expenses they expect you to have actually spent them on living expenses by now? or more likely they might have just forgotten them).

Someone elses money saved in your name - It's in your name so they can take it into account and it would be up to you to challenge that you couldn't access it and spend it.

The example says that she 'should' report it, not that she 'must' report it, so factually it is not incorrect as it stands.

There's a "Report a problem with this page button" if you think that someting is missing or factually wrong.

It probably isn't really intended for that, more for reporting technical errors, but hey,  missing or incorrect information is a problem and the button is there so .....

Auti

Not being awkward just trying to understand - does this one mean that if child has building society account that child wanted to open so he could start to save pocket money and birthday money when and if he wanted to, that is now classed as my money even though I am on the account as trustee for the child (cannot open one without this as he wants to withdraw and put in money). The BS were clear that it was child’s money and they only expect child to use it for child’s wishes.

HillStreetBlues

Auti said:

Not being awkward just trying to understand - does this one mean that if child has building society account that child wanted to open so he could start to save pocket money and birthday money when and if he wanted to, that is now classed as my money even though I am on the account as trustee for the child (cannot open one without this as he wants to withdraw and put in money). The BS were clear that it was child’s money and they only expect child to use it for child’s wishes.

That's  the trouble with a brief guide it can cause confusion, I expect you will be one of many concerned after reading it ( a guide isn't legal fact)

If the account is in the child's name then even when a parent is a trustee then it's the child's money. But it can always be looked at to make sure  parents aren't hiding their money in the child's account. This is the best way as it would be up to the DWP to prove it wasn't the child's money
If say a grandparent gave the money to the child  but parents put it into their account, the money is still the child's as parents aren't the beneficial owners of the money, it matters not if they can access it, as they might need too.  the issue with this is by default it would be classed as parents money, so proof would needed, EG a letter from the grandparent.

peteuk

Newcad said:

The CoL payments are regarded indefinitely, so probably should be mentioned.
(Perhaps as they were meant to be used towards living expenses they expect you to have actually spent them on living expenses by now? or more likely they might have just forgotten them).

Would you add to this only if you can prove you’ve not spent them, and as such as still part of your capital over £6 or £16K (therefore disregarded indefinitely)

Auti

@HillStreetBlues. Thank you that put my mind at rest as child likes learning about money management and interest He loves maths so having a passbook makes his day. He is well known in his BS and loves to discuss money with them - they would confirm the money is most definitely his.

NedS

peteuk said:

Newcad said:

The CoL payments are regarded indefinitely, so probably should be mentioned.
(Perhaps as they were meant to be used towards living expenses they expect you to have actually spent them on living expenses by now? or more likely they might have just forgotten them).

Would you add to this only if you can prove you’ve not spent them, and as such as still part of your capital over £6 or £16K (therefore disregarded indefinitely)

Indeed. If you had received £1000 in CoL payments, but your capital had subsequently reduced to zero, it would be reasonable to assume that the disregard ended at that point. If you subsequently inherited £10k, I don't think it would be reasonable to expect £1000 to be disregarded.

CoL payments are also only disregarded for the life of the claim. I recall there being some questions raised previously about whether those who received CoL payments under legacy benefits before making a claim for UC would be entitled to an ongoing disregard on UC, or if the disregard ends with the legacy benefit claim. I don't know the answer to that.

HillStreetBlues

peteuk said:

Would you add to this only if you can prove you’ve not spent them,

Yes, for example I received £1,850 so as long I have kept at least that amount it's disregarded. If it dropped to £1,000 but later went up to £2,000  only £1,000 is disregarded. 

peteuk

NedS said:

peteuk said:

Newcad said:

The CoL payments are regarded indefinitely, so probably should be mentioned.
(Perhaps as they were meant to be used towards living expenses they expect you to have actually spent them on living expenses by now? or more likely they might have just forgotten them).

Would you add to this only if you can prove you’ve not spent them, and as such as still part of your capital over £6 or £16K (therefore disregarded indefinitely)

Indeed. If you had received £1000 in CoL payments, but your capital had subsequently reduced to zero, it would be reasonable to assume that the disregard ended at that point. If you subsequently inherited £10k, I don't think it would be reasonable to expect £1000 to be disregarded.

CoL payments are also only disregarded for the life of the claim. I recall there being some questions raised previously about whether those who received CoL payments under legacy benefits before making a claim for UC would be entitled to an ongoing disregard on UC, or if the disregard ends with the legacy benefit claim. I don't know the answer to that.

I assume if you claimed TC as this is not means tested then there is nothing to disregard.  Equally if you then transition with over £16K capital its fair to say the years transition period provides a bumper so to speak.