Universal Credit Savings and deprivation of capital

kingston1506

Thank you for your guidance much appreciated 

HillStreetBlues

Make sure you're not getting any deductions from your UC  for being over the lower capital limit.
While you are under the lower limit deprivation of capital can never apply, you are free to do whatever you like with your money.

peteuk

peteuk said:

Only your UC will be affected by the capital you have.  PIP is not means tested. 

It sounds like you have over £6K in savings already - this will mean your Uc is reduced by £4.35 for every £250 or part there of over the £6K.
Once you reach £16K your entitlement ceases.  

Certain payments are disregarded, like the COL payments are disregarded for life if you can show you still have them.  For example

If you received £1500 in COL payments and since the your savings have never been lower than this then you can disregard £1500.  If your savings droped to £1k then you disregard £1k of the £1.5K.

Your income and benefits do not count as capital until your next assement period, this is what you are expected to life off. 

Any lump sums may also be disregarded depending on why they came from and the  circumstances you recieved them in.

as previously mentioned COL payments are disregarded if your savings/capital have remained over the amount received.   I dont want to be a pain but please try and read all the advice your being given. 

poppy12345

kingston1506 said:

HillStreetBlues said:

kingston1506 said:

Looks like I will have to contact them and start reporting monthly I was unaware that this had to be done. Do you think likely they will issue me with a penalty for not reporting monthly? 

What has been your maximum savings? Have you deducted your income from your savings to get your capital?

 I didn’t know they don’t count COL payment as capital

You were advised elsewhere that they are disregarded. 

justwhat

Child ISA, Pension and pay off all debt. Treat yourself and improve your life style by using spare money.

Investing in a pension may have tax issues/benefit issues at a later date. Long term planning is key under the current UC rules.

Just remember current non means tested benefits may get changed in the future.

kingston1506

poppy12345 said:

kingston1506 said:

HillStreetBlues said:

kingston1506 said:

Looks like I will have to contact them and start reporting monthly I was unaware that this had to be done. Do you think likely they will issue me with a penalty for not reporting monthly? 

What has been your maximum savings? Have you deducted your income from your savings to get your capital?

 I didn’t know they don’t count COL payment as capital

You were advised elsewhere that they are disregarded. 

Thank you poppy yes I know just trying to get a clear understanding of what I need to do before contacting UC / DWP

peteuk

kingston1506 said:

poppy12345 said:

kingston1506 said:

HillStreetBlues said:

kingston1506 said:

Looks like I will have to contact them and start reporting monthly I was unaware that this had to be done. Do you think likely they will issue me with a penalty for not reporting monthly? 

What has been your maximum savings? Have you deducted your income from your savings to get your capital?

 I didn’t know they don’t count COL payment as capital

You were advised elsewhere that they are disregarded. 

Thank you poppy yes I know just trying to get a clear understanding of what I need to do before contacting UC / DWP

I believe You don't disregard it, DWP do, so theres nothing for you to work out.  You need to declare your capital over £6000 and then advise of disregarded payments.  So using your fiqures you declare £7500 of which 1339 and 600 is disregarded for a month (UC and PIP) but my understanding is you still declare it.  But I’m happy to be wrong.

HillStreetBlues

peteuk said:

kingston1506 said:

poppy12345 said:

kingston1506 said:

HillStreetBlues said:

kingston1506 said:

Looks like I will have to contact them and start reporting monthly I was unaware that this had to be done. Do you think likely they will issue me with a penalty for not reporting monthly? 

What has been your maximum savings? Have you deducted your income from your savings to get your capital?

 I didn’t know they don’t count COL payment as capital

You were advised elsewhere that they are disregarded. 

Thank you poppy yes I know just trying to get a clear understanding of what I need to do before contacting UC / DWP

I believe You don't disregard it, DWP do, so theres nothing for you to work out.  You need to declare your capital over £6000 and then advise of disregarded payments.  So using your fiqures you declare £7500 of which 1339 and 600 is disregarded for a month (UC and PIP) but my understanding is you still declare it.  But I’m happy to be wrong.

There is no need to declare it, capital must be over £6k  not monies.
But if  person feel more at ease declaring  then they should do so, but do the calculations of breakdown for the DWP

Spoonie_Turtle

You certainly don't need to declare benefits payments received during the current (i.e. current when you declare) assessment period.

kingston1506

Just a query would paying off my utilities bill count as paying off debt ie paying my yearly water bill in full, paying tv licence in full are these counted as rent? Thank you for any guidance