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

HillStreetBlues

NedS said:

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.

Where did you get that information from?
As what I have read on the relevant law is https://www.legislation.gov.uk/ukpga/2023/7/crossheading/administration-etc/enacted

Payments to be disregarded for the purposes of tax and social security

No account is to be taken of an additional payment in considering a person’s—

(a)liability to tax,

(b)entitlement to a benefit under an enactment relating to social security (irrespective of the name or nature of the benefit), or

(c)entitlement to a tax credit.

https://data.parliament.uk/DepositedPapers/Files/DEP2023-0365/025_Capital_disregards_V22-0.pdf

Cost of living payment The government is making Cost of Living Payments to
claimants on certain benefits including Universal
Credit.
The Cost of Living Payment is disregarded for
Universal Credit capital purposes indefinitely 

I haven't read it's  just for the life of the claim, if it is I'd like to read it.

NedS

HillStreetBlues said:

NedS said:

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.

Where did you get that information from?
As what I have read on the relevant law is https://www.legislation.gov.uk/ukpga/2023/7/crossheading/administration-etc/enacted

Payments to be disregarded for the purposes of tax and social security

No account is to be taken of an additional payment in considering a person’s—

(a)liability to tax,

(b)entitlement to a benefit under an enactment relating to social security (irrespective of the name or nature of the benefit), or

(c)entitlement to a tax credit.

https://data.parliament.uk/DepositedPapers/Files/DEP2023-0365/025_Capital_disregards_V22-0.pdf

Cost of living payment The government is making Cost of Living Payments to
claimants on certain benefits including Universal
Credit.
The Cost of Living Payment is disregarded for
Universal Credit capital purposes indefinitely 

I haven't read it's  just for the life of the claim, if it is I'd like to read it.

Maybe I'm confusing it with some other disregards which do explicitly state for the life of the claim (large benefit arrears maybe?)

Newcad

"Indefinitely" is an often misunderstood word when used by governments ( especially when used by the DWP).

They use it to make many people think that it means "Infinitlely" ie. for all time - but it doesn't mean that at all.

"Indefinitely" just means 'for a period of time that is not defined'.

Or if you want to put it another way - until we decide it has been long enough.

Spoonie_Turtle

Newcad said:

"Indefinitely" is an often misunderstood word when used by governments ( especially when used by the DWP).

They use it to make many people think that it means "Infinitlely" ie. for all time - but it doesn't mean that at all.

"Indefinitely" just means 'for a period of time that is not defined'.

Or if you want to put it another way - until we decide it has been long enough.

'Indefinitely' is the word DWP chose for their guidance.  (Although I have learned something new from your comment!)

The legislation doesn't use it, just says "no account is to be taken … ".  At the end of the paragraph quoted by HSB it then moves onto another section.  [Although as always I appreciate correction if I'm misunderstanding or misinterpreting.]

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I agree with previous comments that the government probably assumed they'd be used quickly, given their purpose, so very likely didn't think they'd need to consider the potential long-term implications of not setting any time limit at all for the disregard.

HillStreetBlues

Spoonie_Turtle said:

I agree with previous comments that the government probably assumed they'd be used quickly, given their purpose, so very likely didn't think they'd need to consider the potential long-term implications of not setting any time limit at all for the disregard.

An issue  was speed,  some Bills take many years to get Royal Assent, the first Bill had to be done fairly quickly so much easier to just have one very simple clause. If there was a set time-limit it would open up to amendments playing ping-pong until the limit is agreed so delaying the passage.
The second bill was just a copy of the first one with dates amended.

Newcad

Just to note that "Indefinite" may also be genuinely used to describe disregards that are "for the life of the claim".

Nobody knows just when that claim end may be, so it's an indefinite date.

PS. My guess is that they just 'forgot' about the CoL payments when writing that new guidance.