Universal Credit: How do they check savings?

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I've received a managed migration notice to swtich from 'legacy benefits' to UC.

I just wondered if anyone is on UC and knew how they check how much money you've got? I know I will initially have to provide bank statements, but how does it work on an ongoing basis after that? Do I have to upload bank statements every week/month going forward? Do I have to grant them access to constantly check my bank accounts?

I'm worried if it's the latter. I've got nothing to hide. And I completely understand that it's a means tested benefit so there has to be some mechanism for checking who's eligible. I certainly don't have over the threshold amount of money or assets, but I just feel uncomfortable with the thought of the government bods being able to dip in and out of my account at any time and check what I've been buying. So, does anyone know how it actually works?

And what happens if I temporarily go over the £6k, say for a couple of days? I can imagine it, e.g. if I agreed to organise a holiday for my extended family and collected in everyone's money before paying out to the accommodation provider. Would I get penalised and lose UC?

Can anyone who currently claims give any insight as to how the process actually works?

TIA.

Apologies if there's a dedicated topic for this, I couldn't find one.

If savings are going up or down each month then they expect you to report it. It goes on the circumstances on the last day of your assessment period each month. If you don't report it for a few months they will prompt you to declare your savings. They don't go snooping on bank statements unless they have reason to think you are not being truthful..

I've never had my savings checked.

Not when switching (I switched because ds left education but he's disabled so could get the carers allowance on income) and they've never asked since either.

Thanks. It's not savings that are going up and down. I have just over £1k in savings and that stays stable (I can't afford to put any more in!), it's the current account that goes up and down. But it would be very exceptional for it to go over £6k in total (like I say, maybe if I paid for an entire holiday). So do I report how much I've got once a month, on the journal or something?

I'm not sure but I assume they have access to bank account details or payroll details? Maybe not with bank accounts?

But I claimed UC for 3 months before I started a new job. The month I started the new job and my income took me over the UC threshold, I didn't receive a UC payment. I hadn't told UC about the new job so they must've had access to my HMRC payments.

They don't check your bank account unless they have reason to believe you're being dishonest.

Isn't there some kind of protection when being migrated over that savings don't count for the first year anyway? Or if they do it is the same as the previous benefit

I wondered about this too. DH has a business and it can vary from if he has just been paid for something in advance but then he has to pay out stuff...I wondered how it would work with that?

I'd dreading it to be honest as he is self employed and about how to calculate things monthly etc whereas with tax credits it is based on the years profit.

I was assuming they'd have access to my employment details, because the tax credits I currently get do (they send me an annual statement of how much I've earned), I just didn't see how they would check bank accounts.

It seems from other posts that they probably don't, which is reassuring.

There is a part of the letter that talks about transitional protection, which I was really relieved about, because I'd already done the online calculators and was looking at losing a considerable amount each month from the switch. I'll still be losing my free prescriptions and dental treatment, so that's going to eat into my budget.

I'm not sure what that means in terms of the amount you have in the bank. But the way it was worded in the migration notice was that you were supposed to be topped up on UC to the same level as what you were on before as long as there was no change in circumstance. It didn't say how long for.

Am absolutely dreading receiving my Transitional letter. What area of the country are you OP?

What is 'savings' anyway?

Do they count savings for tax for the self employed? I hope not, as it's not your money so you can't spend it.

What about money in your current account that's needed for bills, food, travel etc later in the month? Who's to decide what is and isn't 'spare'?

What about money that you know you'll need to spend on essentials in a few months' time? Eg if you pay your car insurance annually so save towards it? Would they count that money?

They wouldn't count your car insurance money (or other car related costs) if you paid it monthly, so why should you be penalised if you're more financially responsible and budget for ups and downs in monthly expenditure by saving for bigger purchases?

The banks provide them with data. Don't know the details though.

That was my experience. Could've been HMRC? But UC knew the 1st month I was paid and it went over the UC threshold so I didn't get paid that month or from then on.

London. I was really hoping to be able to cling on until a General Election in the hopes that a new government would pause the roll out (Labour said they would, although I don't know if that's a current commitment), but no such luck.

Just out of curiosity, why do some people not want to migrate over ?

They will know what you earn as payroll is reported to HMRC every time you get paid

As far as I can tell, it's just the sum total of what you have in all your accounts and certain assets (not sure about the assets as I don't have any). They don't take any notice of whether it's earmarked for particular things, or a general rainy day fund, or whatever. It's just a straightforward, if you've got under £6k, no penalty; if you've got between £6k and £16k, you lose a certain amount per £250 increment above £6k; and if you've got over £16k you can't get any UC at all, except during the initial transitional period. I might have misunderstood, but I've done all the online calculators and looked at a lot of sites and that seems to be how they look at it. They don't distinguish between savings and general current account balance, it's just the total of everything in every account.

I assume there is some arrangement for self-employed people and their expenses/balace, but I don't know what. Maybe there isn't!

Did your letter come with your renewal pack or was it separate?

They just took my uncle's word for how much savings he had, when he applied last year.

In my experience, I don't think they often check someone's amount of savings ever again. A few people might be unlucky to be randomly picked to be one of the few that are checked each year.

Universal credit is a shit system. For example person receives a pip benefit on income support they receive a sickness premium on universal credit you don’t. Uc is paid calendar month in arrears so if you are paid every 4weeks uc thinks you have been paid twice in one month basically. The system needs to be looked at and reviewed.

Loads of reasons. In my case (and I really hope this isn't too outing, when compared with my posting history; if you recognise me IRL, please don't say!):

a) I will lose my free medical and dental care. As I'm on long-term medication I'm having to think carefully about how I can afford to keep taking it or what alternative there is (a hysterectomy is an option, which would solve my gynae issues in a somewhat radical way). I don't meet the threshold for any additional support for prescription costs.

b) My income is calculated differently for the current 'legacy' benefits than for UC. I have a student grant which I can only use for education-related costs, but UC counts it as income so it takes it away from what I'm entitled to receive. I don't think this is fair because it's not spare income that I can spend on day to day living expenses.

c) It gives my ex a further hold over me. He already pays less than he should according to the CMS calculator. Spousal maintenance counts as income for UC whereas it doesn't under legacy benefits. So he can play nasty and report me for benefit fraud by claiming that he pays spousal maintenance rather than child maintenance (difficult to prove since we never went to court, it's all informal), and in the meantime reduce what he pays me further under the pretence that it will make my income look too large if I have to add on what he pays.

By itself. With a part of the letter saying that if I got a renewal notice in the meantime, I should still complete it.

I only had to send bank statements when I first went over to them after that nothing

They know how much I'm paid every month through my employer nothing to do with the bank informing them

Unless your savings go above £6k you don't need to say anything if they change up and down below that amount. They will only apply for permission to access your bank account if they suspect fraud.
No you can't hold above £6k for a few days so don't volunteer to be the friend that does that.

Yes Unlimted savings for 12 months if migrating from tax credits.