Universal Credit saving limit

Redroses25

Hi

i’m hoping someone can help me. 

I’m going through a difficult time and really need some advice. 

I’m going through a difficult divorce and applied for legal aid which I qualified for being on UC. 

In the financial disclosure, I stated that I have £21k in “saving” although not all of this is saving as such as my landlord makes me pay 6 months rent in advance which is due next month when I have to pay £11k. 

This has now been challenged because I am technically over the savings cap. I have sent them a copy of my tenancy agreement which details the arrangement but they are being very unhelpful and now threatening to remove the legal aid. 

Could someone help with some advice? Surely they can’t take this money into account as it is for upcoming rent. 

I would really appreciate any advice. 

TIA

HillStreetBlues

Redroses25 said:

Hi

i’m hoping someone can help me. 

I’m going through a difficult time and really need some advice. 

I’m going through a difficult divorce and applied for legal aid which I qualified for being on UC. 

In the financial disclosure, I stated that I have £21k in “saving” although not all of this is saving as such as my landlord makes me pay 6 months rent in advance which is due next month when I have to pay £11k. 

This has now been challenged because I am technically over the savings cap. I have sent them a copy of my tenancy agreement which details the arrangement but they are being very unhelpful and now threatening to remove the legal aid. 

Could someone help with some advice? Surely they can’t take this money into account as it is for upcoming rent. 

I would really appreciate any advice. 

TIA

AFAIK there is no exception for capital held for that reason.

poppy12345

How long have you been claiming UC for? With capital of more than £16,000 you’re excluded from claiming. 

Rubyroobs

As above anything above 16k means you would not qualify for UC.

Redroses25

Hi - doesn’t it count if it’s for my rent? It’s not
saving. I have to pay £11k next month so my savings will reduce to £10k. I am saving for a car and insurance. I have never driven before so my insurance will be high. I need a car for work and my son. 

Mnoee

There's very few instances where money is disregarded. They're listed here, and rent isn't one of them.

https://www.gov.uk/guidance/universal-credit-money-savings-and-investments#whats-notcountedas-money-savings-and-investments

You should contact UC. 

peteuk

You need to stop thinking about savings, HMRC will view anything left in your accounts at the end of each assessment period, minus any income received during the AP as capitol,  Regardless of if you are intending to use it as rent, until you pay it youve access to £11K, on top of the £10K.  

Buying a car is not classed as DOC, unless you buy a top of the range souped up £100K vehicle,  I brought a car for £2K in 2019, my wife’s had three cars in the time since, but my £2K banger is still going.   So you dont really need £10K for a car, insurance isn’t going to be massive if you buy an old car.  

poppy12345

peteuk said:

You need to stop thinking about savings, HMRC will view anything left in your accounts at the end of each assessment period, minus any income received during the AP as capitol,  Regardless of if you are intending to use it as rent, until you pay it youve access to £11K, on top of the £10K.  

Typo, that should be "DWP"