UC review of £6K savings - a couple of questions please

jtlpbrighton

I am under review for UC because they have seen that I have more than £6K spread across savings (£5K) and bank account (wages of £1,200 every 4 weeks). Once I pay my rent from my wages, the amount across all accounts drops below £6K. I did not think to consider my wages as savings because the money goes out of my account the same month (UC can see this from the financial statements I've given them from my ISA (£4K), Bank savings account (£1K) and Current account where my wages are paid into.  

I know that ignorance is no defence in law and if if I have to pay anything back I will do so from the savings I have. Will there be a fine as well? Today, I have read a message from UC confirming they have received all the financial statements and ID info they requested and to look out for more messages. Do you know how long the review process could take?

Also, how can I turn on notifications for messages on the UC platform? I found the message from UC because I was checking the August payment (it's zero).

Thanks in advance and sorry for the long post. 

teaselMay

Is it not a routine review? If the 1200 coming in is spent within the month that doesn't count as savings.

Spoonie_Turtle

teaselMay said:

Is it not a routine review? If the 1200 coming in is spent within the month that doesn't count as savings.

That is correct (partially, as income is not capital unless it remains unspent at the end of the next assessment period), but my current experience is that the review team may apparently not even know this.  So be prepared you may need to challenge any incorrect decision, OP.

Relevant guidance quoted in this post here https://forums.moneysavingexpert.com/discussion/comment/81515043/#Comment_81515043

peteuk

Capital is what is left in your accounts at the end of the AP.  Any income or benefits received during the AP are not classed as capital until the end of the next AP
For example you have £5K savings and paid £1200 income on 29 July.  You AP is 30 Jul - Capital is £5k
You spend £1000 on Iiving and then get paid £1200 29 Aug.  
On 30 Aug although you have £6,400 your capital is £5200.

jtlpbrighton

Thank you for your replies and explaining things. I got a phone call from UC who said the account was under review because they wanted to check I didn't have more than £6K in savings. A relief to know that I'm not potentially facing a criminal case for defrauding the government. I don't have enough money to live on this month as they have suspended any payment for August, so I will dip into savings which has the weird "benefit" of keeping me well under the £6K limit!

Taffy9264

I thought you were allowed to have 16K in savings? Did that change? or Have I just been badly misinformed?

Muttleythefrog

Taffy9264 said:

I thought you were allowed to have 16K in savings? Did that change? or Have I just been badly misinformed?

You're allowed to have as much savings as you like... but capital between £6k and £16k will affect the amount of Universal Credit you get. Over £16k and no UC. Any capital over £6k should be reported each month.

There has been no change.