Income classed as savings for UC

karenlouisee

Can someone please explain what they class as income? I understand they say:
“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.”

the example they give is what confuses me:
” 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. ”

So is it just the salary they look at? Or do they look at any money you have in your account at the end of your assessment period. My income consists of my wage from employment, UC, and then children’s benefits. Do they look at all of it that’s left at the end of the assessment period or just your salary? The example doesn’t mention “she also got 500 uc which she also didn’t spend so would have 1k in savings. 

Also my assessment period runs to the 5th, but I get paid on 15th and UC on the 12th, so I always have a lot in my account at this point because bills haven’t come out yet. 

I have savings close to 6k so just trying to understand how they take your current account into account and if it takes me over the threshold. Finding it hard to understand and whether I need to declare anything or not. 

Brie

Can't answer much so just want to suggest that you arrange for bills to be taken before the start of the assessment period so it's not an issue.  Most companies are happy to change payment dates within reason.

HillStreetBlues

That example is misleading, what you report is capital at the end of the AP. Also unless it's over £6k you don't have to report it.
Example with made  up figures for 6th to 5th AP  Wages £1k on the 15th UC £1k on the 12th. Monies at end of AP £7k The wages & UC equals £2k that is classed as income. Deduct the income(£2k) from monies (£7k) that leave £5k capital (This excludes in the calculation any capital that could be disregarded).

peteuk

So if your assessement period is 24 to 23rd of each month and you get paid on the last working day of each month your wage will not be counted until the next assessment period,

So assessment period 24 Sept to 23 Oct - pay day is Monday 30 £1000.

When it comes to 24 Oct you only need to look at what’s left from your wage.

If your assessment period is 01 Sep - 30 Sep and your paid 30 Sep is wont be classed as capital until 01 Dec. 

I believe this is the same for all benefits (someone will correct me) but you only have to declare of £6K.  But in the situation where theres an under lap you (wage enters days befor end of assessement and you have over £6K you still declare everything and the disregard will kick in.  Also if youve been on UC for a while and had the COL payments these are disregarded for life, if you can demonstrate youve keep above the amount in your savings.

So you can declare over £6K but not have a deduction. 

Spoonie_Turtle

They do include other sources of income - if it remains unspent, it becomes capital.

For the end of an assessment period, you need to add up all the types of income you've received in that AP - wages, benefits, etc. - then minus that from the total of your accounts.  What's left is your capital.

Baldytyke88

If you put £50 per month into a pension, that will bring down your earnings.

peteuk

Baldytyke88 said:

If you put £50 per month into a pension, that will bring down your earnings.

But that will only really effect the reduction for income (55p per £1) it will then leave the OP with £27.5 more in UC but -£50 in wage.

It wouldnt effect the amount of savings they have, because the question is when does wage, benefits ect become capital.