Universal Credit Savings and deprivation of capital

kingston1506

Sorry typo I meant are these counted as debt? 

itsthelittlethings

kingston1506 said:

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 

I think it just counts as paying for stuff, which is fine.

HillStreetBlues

kingston1506 said:

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 

Yes as long as you don't overpay.
For example if you owe £500 on utilities bill and paid into the account £1,000 only £500 is paying off a debt.

peteuk

kingston1506 said:

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 

No they’re not included as rent.  You are billed for the year and then have the option to pay monthly.  So paying yearly shouldn’t be a problem, as they’re not debt.  I would also argue if you agree to monthly payments this may also may not be classed as debt.

andrewmp

peteuk said:

kingston1506 said:

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 

No they’re not included as rent.  You are billed for the year and then have the option to pay monthly.  So paying yearly shouldn’t be a problem, as they’re not debt.  I would also argue if you agree to monthly payments this may also may not be classed as debt.

If it's debt, it's debt. Surely? They bill you at the start of the year for the coming year then allow you to pay over 12 months. Sounds exactly like a debt to me, which means repaying it can't be deprivation of capital.

peteuk

andrewmp said:

peteuk said:

kingston1506 said:

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 

No they’re not included as rent.  You are billed for the year and then have the option to pay monthly.  So paying yearly shouldn’t be a problem, as they’re not debt.  I would also argue if you agree to monthly payments this may also may not be classed as debt.

If it's debt, it's debt. Surely? They bill you at the start of the year for the coming year then allow you to pay over 12 months. Sounds exactly like a debt to me, which means repaying it can't be deprivation of capital.

It’s not a debt, it’s a household bill.  So even though it’s not a debt it’s something you are expected to pay so therefore wont be seen as DoC.  For a payment to be classed as DoC it has to be shown as spending money to allow the claimant to claim a benefit.  

For example - 
If you have £16,240 in a saving account and in Jan you decide to pay your water rates of £300 leaving you £15, 940.  If wont be classed as paying a debt but equally wont be seen as DoC. 

If you had the same £16,240 and spend £600 on a Kylie ticket when you could have spent £100 then this may be seen as spending to get under the £16K to then allow you to claim UC so may be classed as DoC

Mittens77

I hope someone can help me 

I'm on universal credit and also get lcwra..total amount is £1249 per month.
£440 is Lha towards rent.  Rent is £700+ per month
I get pip totalling £303 per month
I also have a family member send me roughly £200 per month voluntary cash gift in dribs and drabs to help with bills , debts  etc

All this money is spent each month...nothing left over.

I am over 55 and have a small private pension and have realised that I can now take up to 25% of that in a tax free lump sum. 

I need urgent dental treatment which is going to cost me roughly £2000 ( I do not have an NHS dentist). 

If I take £5500 as my £25% capital lump sum from the pension will this affect my universal credit amount each month? 

If I pay £2000 dental treatment and then have £3500  sat in my current account will this affect my monthly UC amount? 

If over the course of a year that £3500 left is spent ...well on anything from meals, social events treating myself to a weekend away...anything tbh. Will any of this affect my universal credit payments? 

Oh and will that lump sum affect the housing benefit over the course of a year ?

I've had cancer for over three years and it hasn't reduced in that time so who knows if I'll still be around in 10 years when I reach retirement age ! 

Any help much appreciated 

Grumpy_chap

Mittens77 said:

I hope someone can help me 

I'm on universal credit and also get lcwra..total amount is £1249 per month.
£440 is Lha towards rent.  Rent is £700+ per month
I get pip totalling £303 per month
I also have a family member send me roughly £200 per month voluntary cash gift in dribs and drabs to help with bills , debts  etc

All this money is spent each month...nothing left over.

I am over 55 and have a small private pension and have realised that I can now take up to 25% of that in a tax free lump sum. 

I need urgent dental treatment which is going to cost me roughly £2000 ( I do not have an NHS dentist). 

If I take £5500 as my £25% capital lump sum from the pension will this affect my universal credit amount each month? 

If I pay £2000 dental treatment and then have £3500  sat in my current account will this affect my monthly UC amount? 

If over the course of a year that £3500 left is spent ...well on anything from meals, social events treating myself to a weekend away...anything tbh. Will any of this affect my universal credit payments? 

Oh and will that lump sum affect the housing benefit over the course of a year ?

I've had cancer for over three years and it hasn't reduced in that time so who knows if I'll still be around in 10 years when I reach retirement age ! 

Any help much appreciated 

For any other readers, this has it's own thread here:
https://forums.moneysavingexpert.com/discussion/6590734/universal-credit-and-lump-sum-of-5500-from-pension#latest

poppy12345

Mittens77 said:

I hope someone can help me 

I'm on universal credit and also get lcwra..total amount is £1249 per month.
£440 is Lha towards rent.  Rent is £700+ per month
I get pip totalling £303 per month
I also have a family member send me roughly £200 per month voluntary cash gift in dribs and drabs to help with bills , debts  etc

All this money is spent each month...nothing left over.

I am over 55 and have a small private pension and have realised that I can now take up to 25% of that in a tax free lump sum. 

I need urgent dental treatment which is going to cost me roughly £2000 ( I do not have an NHS dentist). 

If I take £5500 as my £25% capital lump sum from the pension will this affect my universal credit amount each month? 

If I pay £2000 dental treatment and then have £3500  sat in my current account will this affect my monthly UC amount? 

If over the course of a year that £3500 left is spent ...well on anything from meals, social events treating myself to a weekend away...anything tbh. Will any of this affect my universal credit payments? 

Oh and will that lump sum affect the housing benefit over the course of a year ?

I've had cancer for over three years and it hasn't reduced in that time so who knows if I'll still be around in 10 years when I reach retirement age ! 

Any help much appreciated 

It’s always better to stick to one thread because it gets confusing asking the same question on multiple threads. Your question was answered on your own thread.