Just got UC statement, worse off by £900 ? Mistake?

blackstar

Hello all

Rather than starting a new thread thought might be easier to follow on from this one?

I am having trouble trying to figure out the date our Transitional Capital Protection ends? And would appreciate any help? Ie from this date if we still have over 16k we will not longer be entitled to UC. 

Also in terms of once the TP ends if at any point we tip over 16k during the assesment period for even say 1 day or 2, is it the case that its matters only what our savings are on the final day of the assesment period ? 

I did find this when I logged into UC

"Your next statement will be ready on 1 May 2025. Check again then.

On 5 May 2025 you will be paid any money you are entitled to.

The amount you get is based on your circumstances from 29 March to 28 April 2025."

Our first AP was 

Assessment period: 29 August to 28 September 2024

And we were paid Oct 5th 2024

We have been saving hard for some essential home repairs and should have enough for them by Aug 2025 which will most probably take us below 16k. 

Thanks all? 

peteuk

Assuming you transfered over from WOrking tax credits - then the TP will ignore capital over £16K for one year. However anything betweeen £6K and £16K is not and so still attracts the £4.35 deduction for every £250 or part of there in, over the £6K. 

Your Assesment period will always be the same, so 29 th of the month to 28th of the next month and payment is usually 5 - 7 days later. (Unless weekend/bank holiday)  You are correct in the fact that it is the amount of capital at the end of the assessment period that counts to your UC. 

It may be asked why wait until the years TP is completed to start work, as this may be seen as DOC to ensure you continue on UC.  Equally if you drop below £16K prior to the TP finishing, any further increase in capital above £16K after this would not attract the TP. 

Yamor

Generally, what matters is the amount of capital you have at the end of your AP.

However, there is nothing to stop a Decision Maker making a decision in the middle of an AP to terminate your award, if they are satisfied that you have over £16k at that point. They do not have to wait until the end of the AP to see if that still remains the case.

In practice, around the end of your 12-month transitional capital disregard period, UC will ask you to report if your capital has changed, and if you don't do anything, or if you report a figure over £16k, then they will usually terminate your award immediately, even before reaching the end of the AP following the 12-month period.

If your capital was to subsequently fall below £16k still during that AP, you would have to make a new claim for UC. The start of the new claim would be backdated to the beginning of that AP, effectively meaning no gap in entitlement.

The only loss in that scenario would be if you had been entitled to a transitional element, as that wouldn't carry over to the new award.

Without reading through the whole thread properly, it appears that you don't have a transitional element, so that shouldn't be an issue.
However, to save the hassle of making a new claim, it would be better if your capital was below £16k by the end of your 12-month period (i.e., 28th Aug), or at least within a few days after that.

blackstar

Thanks.

So the last day of our capital transitional protection is 28th Aug 2025 is that right?

Our first AP was 

Assessment period: 29 August to 28 September 2024

If our capital is still over 16k on 29th Aug 2025 does this mean our UC will stop and we will need to make a new claim? 

If our savings are below 16k for example on 15th Aug 2025 what happens?

We have been saving up for some essential home repairs and should have enough to pay for them around mid August which means we will be below 16k around middle of Aug 2025 once we pay for those essential repairs. 

What is your advice please. 

Yamor

Yes, the last day of your protection will most likely be 28th Aug.
It can be later if you had/have any Assessment Periods with a nil award due to the level of your earnings, as for each such month the protection will be extended for a month.

As I stated above, your UC will not end if you respond to the request on your journal at the 12-month mark to confirm your capital, and you are able to confirm that your capital is below £16k.

If your savings are below £16k at 15th Aug, then you should therefore certainly be fine. Subject of course to DWP accepting that your savings are lower, and that there has not been any deliberate deprivation of capital.