6k threshold on a couples UC

stueyhaigh1974

Hi, I'm needing to know if I would be over the 6K threshold for UC, based on the fact that my partner needs to learn to drive and has taken out a 2k loan to do so. If we are claiming UC as a couple and this loan takes us just over the 6k when you add our bank accounts together, does this count and we'll be deducted?

Spoonie_Turtle

It does count, for as long as you have the money in your account.

The deduction is £4.35/month for every £250 or part thereof over £6,000.  And obviously as she uses the money to pay for lessons and anything else, you notify them at the end of each assessment period when it's reduced below a multiple of £250.

If she can pay for blocks of driving lessons that'll help bring it down in chunks rather than gradually paying for each lesson week by week.

TimeLord1

Just make sure he keeps good records of the loan.

teaselMay

TimeLord1 said:

The £2,000 loan your partner has taken out for driving lessons will not be counted as capital. It's a liability, not an asset.

this is not correct

TimeLord1

teaselMay said:

TimeLord1 said:

The £2,000 loan your partner has taken out for driving lessons will not be counted as capital. It's a liability, not an asset.

this is not correct

Yes my mistake, because they are over the 6k as joint claim.

TimeLord1

@Spoonie_Turtle What about previous payments of Universal Credit for that month? Would that be income then counted as capital if unspent the following month?

Spoonie_Turtle

TimeLord1 said:

@Spoonie_Turtle What about previous payments of Universal Credit for that month? Would that be income then counted as capital if unspent the following month?

Good point, rereading the first post I see they say 'just over' £6,000.

OP you only need to report your capital - that is, not including income you've received that assessment period, which is earnings, benefit payments, things like that. 

So at the end of an assessment period you add everything up, deduct what income you received, and what's left is capital.  If that result is under £6,000 then you don't need to report anything.

stueyhaigh1974

Thank you all for your posts and your info!