UC and if you go over 16k?

HillStreetBlues

1) yes
2) The best way to check is  the two links, these have to change as they are Acts as long as they both continue to say

Payments to be disregarded for the purposes of tax and social security

No account is to be taken of an additional payment in considering a person’s—

(a)liability to tax,

(b)entitlement to benefit under an enactment relating to social security (irrespective of the name or nature of the benefit), or

(c)entitlement to a tax credit.

then  these payments are disregarded, it can only be changed by an amendment to the Act and that is what to quote in anyone asks.

3) It doesn't matter what any other info states, including guides, all that matters are the two Acts and as long as number 8 remains unamended the the CoL payments are disregarded 

NedS

blackstar said:

Disregard of Cost-of-Living payments (providing the balance has never gone below the running sum of those payments) - H1767 of the ADM Chapter H1 cites Social Security (Additional Payments) Acts 2022 s.8 and 2023 s.8, asserting that these should be permanently disregarded. That's a permament disregard of £1850 for all related payments. But there is no question in the UC interface about Cost-of-Living disregards.

The UC system is a work in progress (even after 12 years!) and will likely continue to be so. The original Verify Capital todo's that gathered the evidence didn't ask about any disregards, so the fact they now ask about most (even if not all) is progress in the right direction. You would not believe how difficult it is to get what may seem like a simple amendment made to the UC system.

As stated above, the legislation is what is important. Hopefully DWP guidance and the UC system reflect that legislation as closely as possible.

blackstar

Thanks

Sorry to not be understanding and I am trying hard but can someone please explain to me a few questions please in relation to the below Act and COL.

"Commencement Information

I7 S. 7 in force at Royal Assent, see s. 11(2)

8 Payments to be disregarded for the purposes of tax and social security

No account is to be taken of an additional payment in considering a person’s—

(a)liability to tax,

(b)entitlement to benefit under an enactment relating to social security (irrespective of the name or nature of the benefit), or

(c)entitlement to a tax credit."

https://www.legislation.gov.uk/ukpga/2022/38

1) how is the above refering to COL payments? 

2) any links to how it is refering to COL please?

3) How is it not also covering DLA, ESA and other benefits? 

4) Is it section "b" that is relevant to COL and the part that says "no account is to be taken..." that is relevant to COL? 

HillStreetBlues

blackstar said:

Thanks

Sorry to not be understanding and I am trying hard but can someone please explain to me a few questions please in relation to the below Act and COL.

"Commencement Information

I7 S. 7 in force at Royal Assent, see s. 11(2)

8 Payments to be disregarded for the purposes of tax and social security

No account is to be taken of an additional payment in considering a person’s—

(a)liability to tax,

(b)entitlement to benefit under an enactment relating to social security (irrespective of the name or nature of the benefit), or

(c)entitlement to a tax credit."

https://www.legislation.gov.uk/ukpga/2022/38

1) how is the above refering to COL payments? 

2) any links to how it is refering to COL please?

3) How is it not also covering DLA, ESA and other benefits? 

4) Is it section "b" that is relevant to COL and the part that says "no account is to be taken..." that is relevant to COL? 

The two Acts, Social Security (Additional Payments) Act 2022 & 2023  is the official name of the CoL payments, Everyone calls them CoL payments, but actually they are Additional Payments.
It covers all social security benefits.  

Spoonie_Turtle

3) because the legislation is ONLY for what we call the CoL payments.  It is not applicable to payments of other benefits.

blackstar

Thanks Spoonie,

HILLstreet would love your input on my 4 questions too please. Thanks. 

Spoonie_Turtle

blackstar said:

Thanks Spoonie,

HILLstreet would love your input on my 4 questions too please. Thanks. 

HillStreetBlues' post answered questions 1, 2 and 4 (and implicitly 3).

The legislation applies to the Cost of Living Payments (and only CoL payments) because those two Acts are the legal basis on which the Cost of Living Payments were paid.  The colloquial 'CoL payments' are the Additional Payments referred to in the Acts' titles.  Of which you can reassure yourself by matching up the payment amounts set out in the law with the payment amounts specified here  https://www.gov.uk/guidance/cost-of-living-payment

blackstar

Thanks so much. Appreciated greatly. I understand it now.

1) So basically so long as the dates do not change to the below: 

https://www.legislation.gov.uk/ukpga/2022/38 & https://www.legislation.gov.uk/ukpga/2023/7

The top one showing 28/06/22

And bottom one showing 23/03/2023

Then I can safely assume no changes to the COL being disregarded correct?

2) There won't be a seperate act about the COL coming out and those two above acts staying the exact same way and same exact date will there? Nervous

HillStreetBlues

1) Yes dates will change to show amendments, if they do then check what's been amended
2) If they want to change the above Acts then they will amend them rather than create a new Act.

blackstar

UPDATE:

The first month last month we asked on the UC journal about if we should disregarded the disregarded capital or they should. They replied

"Thank you for confirming. Any money paid from other benefits is not taken into account, and you do not need to add this to your capital."

So the 2nd month we did the same and declared our capital after the disregarded capital was taken off. Then as last time made a note in the journal about what the disregarded capital was. We then got a note on the journal saying the below.

"You will need to report your full capital , then I can refer it to the decision maker to make a decision for it to be disregarded."

Also if we make a capital declaration now it's at the start of this new AP and not the last day of the last AP when we made the last capital declaration 2 days ago. Will that not cause some confusion?

Also our daugher get Self Directed support and we know for a fact that this is disregarded but they are asking to declare all capital. 

What do others advise?