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to think that people with savings don't realise they may not be eligible for ANY Universal Credit

(199 Posts)
OriginalRoute Tue 02-Apr-13 22:42:08

Universal Credit will be affected by savings over £6000 and if an individual or a couple have savings of £16000 between them they will not be entitled to any Universal Credit. I'm in a full time low paid job and have no pension, but do have savings slightly above £16000 from my inheritance. It wasn't a big safety net for the future especially with current interest rates but I thought it was better than nothing. Now Nothing would actually give me a much better return and I'm going to have to spend it on topping up my income, as I don't think the chance of getting a higher paid job is likely in the foreseeable future.

ExRatty Tue 02-Apr-13 22:46:12

ATM you can't get income support if you have savings of over £6k
£16k is already the figure for other benefits afaik

OriginalRoute Tue 02-Apr-13 22:50:42

Capital isn't taken into account when working out entitlement to tax credits.

ThreeWheelsGood Tue 02-Apr-13 23:24:10

Hasn't this always been true for JSA and council tax housing benefit? Still sucks though.

mercibucket Tue 02-Apr-13 23:37:42

i think you are right and a lot of people are in for a shock

PariahHairy Tue 02-Apr-13 23:55:41

Isn't that what savings are for though? A rainy day? confused I hate this government and almost everything they do, but on this hmm. Although, why don't you buy silver or gold to take you under the limit, I'm always reading on the conspiracy forums I read that precious metals are an excellent store of wealth.

Or buy an expensive piece of art/jewellery something that doesn't count as savings.

steppemum Wed 03-Apr-13 00:04:56

original route, does that mean that under universal credit, the old rule about savings and tax credits will no longer apply?

We are entitled to child tax credit, does that mean we will no longer be entitled?

Bunfags Wed 03-Apr-13 00:05:36

6,000 won't get you very far these day though. You might need to buy a new car, or have unexpected, urgent repairs at home. 6,000 could soon vanish.

OriginalRoute Wed 03-Apr-13 00:07:42

But it's not really a rainy day is it? Just my life, going to work and not getting paid enough. Am I being subsidised or my employer?

MrsRajeshKoothrappali Wed 03-Apr-13 00:08:31

This'll start a spate of peeps hiding cash in biscuit tins (not that I'd blame them). Then the banks will lose money.

It does seem that these new plans aren't terribly well thought out.

OriginalRoute Wed 03-Apr-13 00:11:15

As I understand it Steppemum if you have savings over £16000 you get nothing.

OriginalRoute Wed 03-Apr-13 00:11:16

As I understand it Steppemum if you have savings over £16000 you get nothing.

ExRatty Wed 03-Apr-13 00:17:20
ExRatty Wed 03-Apr-13 00:18:56
Bunfags Wed 03-Apr-13 00:26:45

Can't people just transfer money into a relatives account or something like that? Won't people just move their money elsewhere or invest it in something that won't be taxed?

propertyNIGHTmareBEFOREXMAS Wed 03-Apr-13 00:35:50

Yanbu and you are exactly right in your understanding of the rules re UC and savings. Biscuit tins are about to become very popular I think. I find it odd that £17k in the bank means no child tax credit unnder UC but a £17k car sat on the drive is fine as is a £17k diamond ring on you finger. Can you just pay it against your mortgage? That would be a 'sensible' and non frivilous wayway to spend it?

propertyNIGHTmareBEFOREXMAS Wed 03-Apr-13 00:37:59

Also someone in rented with £17k in bank will not get child tax credit under UC but a homeowner with £100k equity in their home (but no savings) will? It is very odd logic.

Time to start stuffing the mattress. Lots of elderly people have money hidden about the house, inside books cupboards biscuit tins. Time to join them. Dh used to like keeping a cash stash, I got him out of that habit a few years back.
It's good to have back up for emergencies, no way I'd spend it all.

wannaBe Wed 03-Apr-13 01:02:37

£16k is the equivalent to an annual salary in some instances. Why on earth should people be entitled to benefits if you have that much in the bank. To that end, if you can afford to save £16k clearly you're not living in poverty are you?

There are already limits on income support and JSA which it could be argued are far more important than ctc which you presumably can earn even if you have an income where as IS/JSA are your income.

I think they're right on this.

thekidsrule Wed 03-Apr-13 01:05:22

*ATM you can't get income support if you have savings of over £6k
16k is already the figure for other benefits*

not true savings between 6 and 16k can get income support,for every £250 over 6k they deduct a £1 from is up to £16

Also someone in rented with £17k in bank will not get child tax credit under UC but a homeowner with £100k equity in their home (but no savings) will? It is very odd logic.

well id be stuffed then if they counted equity,i would have to sell my house,find a private rent with 3 kids ,single parent not working and pets,where would be the logic in that then

ATouchOfStuffing Wed 03-Apr-13 01:06:47

It's because the government want you to spend it to help boost the economy. As long as you/we do then we will fish the country out of their mess while they get paid huge amounts for making us want flashy cars by selling us out to large companies for advertising and media pressure like the Daily Wail.
Rant over, time for bed!

propertyNIGHTmareBEFOREXMAS Wed 03-Apr-13 01:09:41

But why is a £17k car ok, a £17k ring ok, £100k equity in your house ok but not £17k in the bank? I am not sure why the last one alone should mean no child tax credits. I don't get CTC but I feel sorry for yet another group of people hit by this government's policies.

propertyNIGHTmareBEFOREXMAS Wed 03-Apr-13 01:10:22

My last post was to Wannabe btw.

propertyNIGHTmareBEFOREXMAS Wed 03-Apr-13 01:12:50

I see they want you to spend it but I would assume anyone with a mortgage will sink it straight into that. Pretty unfair to those renting (with savings) who can't do anything as 'sensible' with their nest egg.

thekidsrule Wed 03-Apr-13 01:19:19

does childrens savings count then?

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