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.

Hardly anyone I'd paid spousal maintanance, theh aren't going to believe it's that rather than cb just because he says so

Bloody hell cat on my lap ! Rather than cm

Capital is not treated as savings it will be fine.

That's good to know. Although I think they should make the application clearer. I only knew that CM didn't count because I'd done my research separately. On the application it just asks you to declare SM and doesn't mention CM at all. Before I read up on it, I thought SM was anything paid by an ex, regardless of purpose, since it was the only thing they asked about.

Op you can pay monthly, its approximately £10 for all prescription costs

It's £11.60

I've never had anything checked when I was moved over from tax credits. They never asked to see my bank statements, all they wanted to see were my wage slips and the contract for my rent. I do stay above board and keep my savings below the amount required for them to start reducing UC, just in case they ever do want to check.

I don't think any government will pause it, it is too far rolled out now and works out better for many many people and is a much easier system for many. I think way too many people knock it, but the ridiculous tax credits system needed to change and there are lots of things about UC that are better. It's not great for the self employed but many many people like it and find it better and find they are actually better off on it.

For me...

I am a single parent of two children.

I do have over £6k in savings but that is my emergency fund as l owe my own home so everything is down to me to maintain. Also l know my 14yr old car isn't going to last much longer and l need transport for comuting to work.

When my Mum died her 50% of her and Dads house was split between my brother and l (parents were tenants in common)... therefore l own 25% of his house... which classes as a second property. Even though l don't receive anything for it i.e rent. Plus if Dad needed care in the future even though technically social care could only claim 50%of the house worth... we'd give up our share to ensure he was looked after.

That's not from checking your bank. They request wage slips from your employer.

I personally prefer UC to tax credits. Every bloody year on tax credits I was either overpaid or underpaid. I like that UC is done on a month by month basis so there's no overpayments.

There are pros and cons according to circumstances. Eg in op's case yeah she can pay £135 a year for prescriptions, split over 12 months, but previously she didn't have to. Add in glasses, dental treatment etc and you're soon looking at hundreds of pounds extra outlay per year. Rules on pension contributions are more straightforward, rules on student finance more of a pita. It's also great if you get paid on the same day every month, not so great if any other pattern or if you're a contractor or something. Plus there's all sorts of things around adult learning and training that UC doesn't passport you onto, and you can simultaneously win and lose with state bursary help for transport etc for school age kids. It's just a bit of a ballache in general having to get your head around a new set of complex rules when you're already acutely aware of the underlying massive fact that your household income is lo-o-o-ow.

And the savings thing is tight. Eg £6k wouldn't get you much of a second hand car now so if you need to drive it's in your interest to have something like that in the bank ready to buy when necessary. But then simultaneously save for (eg) a pair of glasses and bang you get penalised. It's almost encouraging debt and finance plans by only allowing minimal contingency funds.

I hadn't even thought of the car. I really need a car, despite living in London, because otherwise it takes me 1.5 hours to get in to work on public transport (or 1 hour 15 minutes if I walk, but given that I usually have to bring a laptop, and often a printer and other stuff, walking is rare). My car is 20 years old, so it's not going to last too much longer. I'd better start saving ... but not too much!

They don’t check your accounts, the earnings are reported by your employer.
When I moved the house, I had quite a big amount of cash transferred into my account, as I took a bigger mortgage in order to cover the cost of replacing the roof and other costs related to the move. I did not declare this as savings, because the money was gone in a couple of weeks.
When I received an inheritance from abroad, they took my word for it and did not request any evidence. I tried to report it to HMRC, but as the person was not linked to the UK, they did not want to know.

Dwp here ..

Contrary to popular belief DWP does not have access to your private bank accounts. Even when fraud is suspected getting a production order to look at your accounts is a far from simple process, requests often get knocked back as disproportionate to the allegation without stronger evidence of wrong doing .. however ..

There is a thing called the GMS scan. This is when the banks and building societies have a legal obligation to report the interest paid on savings. This is then matched against means tested benefits .

So for example .. if your name comes up as someone on means tested benefits (old Income support, income related ESA, UC to name the most common ones) and you have received interest of say £400 for the year on an account paying 2% interest, then you have more than 16k in savings . It's just worked backwards (iyswim) ..

The benefit of being on tax credits means that capital isn't counted - which in my eyes was grossly unfair. You could have inherited £500k and decided to work 16 hours each a week and the govt would top up your income ..

I used to do loads of visits to people on the matching scan.. the 'reasons' were quite breathtaking.. most memorable was a last incensed that I questioned her undeclared savings .. as the £400k in her savings were 'earmarked' for her DHC and therefore didn't regard it as hers ... despite being in an account with her name on. She was claiming pension credit of £400 a month based on her very low income ..

DHC = DGC

If you are self employed, does the money in your business account count as savings?

I don't know about UC but during COVID my partner couldn't claim anything as he hasd about 45k in his business account. It was for tax and vat later in the year but that didn't matter to them.

I'm dreading the change too. I've deliberately not changed my hours or job in years as I don't want to have the stress of moving to UC.

Neither of those things would trigger a move to UC

I report what's in my accounts
every month as it varies. I believe it's a £4.50 deduction for every £250

They wouldn't move you for that, I changed my hours and job a few times and it never triggered a move. I only got moved when I requested it.

So glad I found this site. I'm worrying myself sick with being migrated to universal credits. My son has money in savings account from a life insurance policy from when his dad died. I've read that I have to declare this to uc is this right? Also I work 25 hours on working tax will I have to increase my hours when I get over moved over to universal credit? I read somewhere that if your child is over a certain age you have to work 35 hours? Would be most grateful to hear off anyone

If you are self employed how does that work? Some moths you pay huge amounts out in materials and some you make profit...

Do you have to input all your profit and loss every month? Sounds like a right pain int bum

I wonder what assets they consider for UC too?