Universal credit and cash withdrawals

kingston1506

I had a review where they questioned cash withdrawals, now I panic every time I draw cash, I withdraw between £50 and £100 a week for every day spending, does anyone else you cash? I was thinking to put a journal message asking what the weekly limit is? 

Exodi

Out of curiosity, why do you withdraw the money in cash for every day spending?

Virtually all shops I use for every day spending accept card (many prefer it). I virtually never have cash on me, I can no longer think of a single place I need it - even car parks mostly accept card or payment by app (card). £1 for a trolley or locker, perhaps?

It probably just looks a bit odd. From their perspective, there are nefarious reasons someone might do something like this.

Grumpy_chap

I suspect there is no weekly limit as "it depends" on what is reasonable in the circumstances.
The concern that will be behind the question is whether the cash is being spent or stashed under the floorboards to create savings about £6k / £16k thresholds.
Do you keep receipts for the spending, that could provide evidence of spend if asked?
Do you have alternative methods of payment for the spend, for example debit card?  
I do understand that sometimes it is easier to manage budget with cash and avoid overspend.  If you have £50 cash and that is what you can afford to spend, it is very easy to see how much is left.  Not so visible or obvious if using a debit card which makes it easier to overspend.

kingston1506

It just helps me budget better, plus I sometimes pay friends back in cash if we have been out for dinner things like that really 

Exodi

kingston1506 said:

It just helps me budget better, plus I sometimes pay friends back in cash if we have been out for dinner things like that really 

I found the one of the best ways to budget was to transfer an amount to savings just after I got paid.

Despite being able to withdraw back from savings easily, that didn't happen and the mental impact of seeing a smaller balance in my account caused me to naturally reduce my spending.

In theory, it shouldn't make any difference whether you have £50 in your bank account or £50 in your wallet, though it is probably a question of how often you check each.

How often are you paying back friends in cash? Surely not every week. It might be easier for them if you transferred them the money straight away until having to wait until you next see them.

HillStreetBlues

As using cash is perfectly legal and it suits you then I would continue to use it. I wouldn't let the DWP or anyone else browbeat  me into changing that.

sgthammer

I think the DWP are likely to ask at least as many questions about apparently-random bank transfers to Kingston's mates as they are about cash withdrawals.

"Walking around money" is a useful thing to have. It's a good system that's worked for hundreds of years and I'm not sure why we should be bullied out of it.

Muttleythefrog

You're doing nothing wrong provided of course you're not stashing it away as undeclared capital. There are no limits. During the reviews they seem to have a duty to ask some questions about some transactions... it is likely in your case they lacked for anything significant to ask on spending or sending money or unusual incomes so simply enquired about these transactions to satisfy their role. My wife recently had her review and withdraws and spends more in cash than you typically although irregularly.... yet they didn't ask about cash withdrawals... they asked about cash deposits from selling her junk.

I would not waste your time with a journal message in this case... any answer you do get is liable to be simply made up by someone who wouldn't know... and the reality is there are no limits... you can spend your money legally as you wish and that includes in the form of cash. Whatever you do... try not to worry about this... it's just standard review queries... and I imagine given the basic nature of what they asked you then your review is likely to have gone fine.

To be honest I think we answered this query for you quite recently in previous thread but I imagine your anxieties are getting the better of you. Try not to worry... as I see it from your history you have been open about your capital and reporting relevant levels to UC. You have had previous anxieties of what might be considered deprivation of capital and then detailed things which seemed entirely legitimate and reasonable purchases given your circumstances.

Muttleythefrog

Exodi said:

Out of curiosity, why do you withdraw the money in cash for every day spending?

Virtually all shops I use for every day spending accept card (many prefer it). I virtually never have cash on me, I can no longer think of a single place I need it - even car parks mostly accept card or payment by app (card). £1 for a trolley or locker, perhaps?

It probably just looks a bit odd. From their perspective, there are nefarious reasons someone might do something like this.

Many reasons people do this... but budgeting is a common reason cited by those with very limited funds especially if they get the income infrequently (it is monthly with UC). My wife uses cash sometimes... although mainly uses cards... the reason she does is because she has lived in the UK ten years and yet still isn't entirely familiar with the currency (there will be millions of people in the UK particularly from overseas who might struggle to recognise coins and notes due to never or rarely having used such in the era of card transactions)..... because she spent her first years using cards. She also almost always spends her cash at charity stores on clothes or homewares... probably saves the charities a few pence. Some people, sometimes for political reasons, simply prefer to use cash. I tend to carry some cash because it is not uncommon for taxis here (emergency use in my case) and supermarkets to only accept cash... the first because they often don't use cards and the latter because it is far from uncommon here in Cornwall for card transacting to go down due to communication issues...lol... I'd say it is a weekly occurrence that in local social media I'll see the 'sorry we can only accept cash as our card machines are not working'. Oh and buses... local buses a nightmare for cards and phones... they say they accept these things but their technology and comms are expletive... people often end up resorting to cash or simply being let on for free... I've seen foreign tourists particularly bemused by it all like they're gone back 20 years in time.

bazdvd

spend in a store with your card and get cashback. 

pumpkin60

   I take my universal credit out in full, I take my pip out in full. I have done for years. When I was on esa I took that out in full. I had to send bank statements to esa every year as I had savings, no one has ever asked what I spent my money on. I wish they paid me enough to ' stash it '  My savings have gone down over the 8 years I've been claiming but not by much, I have never been asked why!
   Once the money hits your bank it is yours to spend as you wish.