To wonder why the UC savings threshold is £6,000?

No it doesn’t. The assessment is about the impact of the disability, not extra costs incurred because of it. I spend £££ on my disability but I can’t imagine it would be eligible for PIP as with intensive medication etc I live a fairly normal life.

How is that relevant ? Entitlement to PIP means you have additional costs due to disability, so it would be spent on that.

On the old Working tax credit/Child tax credit system the actual amount of savings didn’t matter. It was the amount of interest you got from savings that was added to your annual earnings. The £6k amount was introduced for universal credit and tampered down until £16k. People who were moved over had some protection.

just focussing on the working part- where do you get your stats from?

when I looked it up last night it said about 35% people on UC are in work and about 10% are full time.

I genuinely am interested as I keep hearing this line that most people who are on UC are in work but can’t find any evidence that is the case.

editing to add- i think this is important in this debate as I think we are often comparing apples and oranges regarding people’s situations and how the government should cater to help

Right, so you’re not talking about people who are likely claiming benefits.
Yes, people who are earning a reasonable wage should save. How is that relevant to the thread? You were bashing people who piss it all up the wall.

There is currently the lifetime ISA which you can use for a house deposit (if you've never owned a property) or retirement. There are penalties for accessing for any other reason. I think this should be treated like a pension and not included in UC calculations.

If a nurse is using a food bank they need to learn how to manage money better as a starting wage for a nurse is £32k

The £6000 savings limit has been in place for means-tested benefits since 1988, when, to put things in perspective, the average UK rent for a 2 bedroom property was £30-£40 per week, so it is very low now

This.

Why should people who are sensible and save be penalised? They're getting the same amount as someone who was spending it on drugs/alcohol/new clothes would. Most people on UC are in work, some will have mortgages to pay and really need a decent buffer in their account for any emergencies or unforseen circumstances.

What needs to be asked is why the cost of living is sky rocketing and wages aren't? Why is the wealth gap is getting larger and larger? The wealthiest people are holding the most wealth whilst the lowest paid are getting poorer, leading to the government having to heavily subsidise them and not have the money in th pot to provide good quality services.

Of course people who have disposable income can save. I don’t think you realise just how many people do not have disposable income for meals out and the like. I think you believe it’s a really tiny amount of households. It’s not. There are TAs, nurses, carers needing food banks.

The limit is £16k. But they reduce any award for people with more than £6k in savings.

I know this doesn’t fit the Mumsnet narrative but not everyone on UC has always been on it. People do lose jobs, relationships break down etc.

Could she not just use her savings to live,.pay her bills. Then when less than the threshold apply for UC and also the stair lift through the council ?

But you could say the exact same for people not on benefits that are renting

Yes, I know. That’s why I included the word “if”.

But there are a significant amount of people on benefits who aren't renting me included. Just like there are a significant amount of people not on benefits that are renting. Its not the divide you seem to think it is

Far from all people on benefits rent.

Not all those things on the list would be covered by a landlord anyway.

Plus admin errors would be made which would leave people with no money which will mean people going into debt and higher demand on food banks and an increase in crime levels. The one and only time in my life I have ever had to use a food bank was following a benefits error through no fault of my own.

Not if they’re renting. The landlord would pay for three of the things on that list that needed to be sorted. I can think of many more.

What is it with the absolute obsession on here with savings and benefits at the moment?
So many similar threads that start of with a seemingly innocent "I wonder..' & quickly turn into benefit bashing comments and derision for anyone who hasn't got at least £50k in the bank.

Well said. People don't seem to grasp that people on benefits still have the same costs they do.

This is s good question, when you drop below the limit your benefits increase again, and drop again as you go back over, it's a lot of paperwork.
The savings limit includes everything in your account, not just savings accounts, so if the limit was lowered people would be going over and under the limit constantly, creating even more paperwork and costing the government more money.

For all saying that people on benefits shouldn't be allowed to have a penny in the bank....

It's a new boiler in in the event your packs in.
It's a cheap second hand car, in the event that your rusts away to nothing.
It's a relocation costs if you have to move across the country to accept a new job.
It's taxi costs if you happen to break your arm and need to visit the hospital regularly.
It's a new fridge if yours packs in.
It's a plumber if your pipes burst.
It's a new phone if yours get dropped down the loo.

Not being allowed a rainy day fund would keep people trapped in poverty, debt and benefits.

I’m sorry to hear that. I thought some of the cancer charities can help with financial support - or at least point you in the right direction. I hope you can find a solution. This is certainly when you should be getting financial support.

I always had saved a £500 contingency/emergency fund which I only touched if something broke like the car or white goods.

It's not fantasy - it's discipline.

Again, I'm not talking about people on the lowest wages living at the edge. I'm talking about the working people who have a bit of cash each week to go to the pub, grab coffee, eat out, get takeaways, go to the cinema etc. Normal things that can be regulated carefully in order to save.