Too much savings!!

Pandora_2

I think I'm in big trouble!! I knew you couldn't have more than £16k in savings and still claim universal credit but what I didn't know was that you had to declare anything over £6k and have deductions from your benefits. I've just had to send the last 18 months worth of bank and savings statements to the DWP and my savings were over £12k at one point! I get the disability/not capable of work element of universal credit and I get high rate PIP as well so I'm literally getting more money than I can spend! I've got my savings down to under £6k again now but I've got £3k in my current account!! I've paid off loads of debts but still have more to go so it's not like I've got nothing to spend some of the money on. Just worried I'm gonna be sanctioned and have my benefits stop and maybe even be prosecuted for benefit fraud! It was an honest mistake and was partly the DWP's fault as they gave me an almost £6k back payment to start with and then I'm getting nearly £2k a month with universal credit and PIP so it just built up. Nervously awaiting them to get back to me about my savings. Do I just play dumb as I honestly didn't know about the £6k thing and have only just found out by accident now it's too late!! Aaaargh!!!!!

Baldytyke88

If you are under 75 you can put £2,880 in to a pension(SIPP)

Auti

Think the £6000 back payment if in lump sum is disregarded for a year.  

 Is any of your money from Cost of Living Payments - they are disregarded indefinitely (you total up how much cost of living payments you got and then minus from your total BUT your money must never go below the cost of living total amount for it to count).    

The money you get in an assessment period is also disregarded and only becomes capital (what’s left after the assessment period it covered) in the next assessment period.
It is what you have on your assessment day that counts (the date about 4 days before you are paid) 

I dont think it is as bad as you fear by my understanding of the rules but others with more knowledge will be along to help.
 

Pandora_2

Baldytyke88 said:

If you are under 75 you can put £2,880 in to a pension(SIPP)

Just had a little read up about SIPP's and I don't think I would be able to do it. I know nothing about investing and am not tech savvy as it says you need to be!! All the talk about fees for this that and the other is a bit off-putting as well 😞 Thanks though

Pandora_2

Auti said:

Think the £6000 back payment if in lump sum is disregarded for a year.  

 Is any of your money from Cost of Living Payments - they are disregarded indefinitely (you total up how much cost of living payments you got and then minus from your total BUT your money must never go below the cost of living total amount for it to count).    

The money you get in an assessment period is also disregarded and only becomes capital (what’s left after the assessment period it covered) in the next assessment period.
It is what you have on your assessment day that counts (the date about 4 days before you are paid) 

I dont think it is as bad as you fear by my understanding of the rules but others with more knowledge will be along to help.
 

Ah the lump sum was about 5 years ago unfortunately. I've had plenty of cost of living payments and my savings have definitely never gone lower than what I've received. I'll try to spend more each month! I quit drinking and smoking so I just don't seem to have the massive outgoings that I used to. Will have to clear off my debts and then find another bad habit to spend on! Ridiculous that you get penalised for not spending money and saving it instead! Thanks for your advice 👍

justwhat

Pandora_2 said:

Baldytyke88 said:

If you are under 75 you can put £2,880 in to a pension(SIPP)

Just had a little read up about SIPP's and I don't think I would be able to do it. I know nothing about investing and am not tech savvy as it says you need to be!! All the talk about fees for this that and the other is a bit off-putting as well 😞 Thanks though

open a NEST pension and put it in there. Simple and does not need managed. £2880 is the max you can get tax relief on if you are not working.

Newly_retired

As well as CoL, your PIP payments are disregarded.

peteuk

Newly_retired said:

As well as CoL, your PIP payments are disregarded.

Pip is only disregarded for the assessment period it was received in, after that anything left over is classed as capital.

Pandora_2

justwhat said:

Pandora_2 said:

Baldytyke88 said:

If you are under 75 you can put £2,880 in to a pension(SIPP)

Just had a little read up about SIPP's and I don't think I would be able to do it. I know nothing about investing and am not tech savvy as it says you need to be!! All the talk about fees for this that and the other is a bit off-putting as well 😞 Thanks though

open a NEST pension and put it in there. Simple and does not need managed. £2880 is the max you can get tax relief on if you are not working.

Ooh all this pension stuff is confusing!! Been reading about Nest pensions and personal pensions. None the wiser after reading it! Haha!! Citizens advice I think is needed to help with pensions. Thanks though

Pandora_2

Newly_retired said:

As well as CoL, your PIP payments are disregarded.

Oh really?! Coz thats over £700 a month!! That's good to know. Thanks 😊 

Pandora_2

peteuk said:

Newly_retired said:

As well as CoL, your PIP payments are disregarded.

Pip is only disregarded for the assessment period it was received in, after that anything left over is classed as capital.

Ah ok. Sounded too good to be true! Haha! Thanks 😊