To think UC guidelines regarding savings are unfair

[dancinguser]

Prepared to get flamed for this and apologies if it's been done before but here goes.

So it's looking likely that DP will be made redundant within the next few weeks due to there not being enough work coming in to justify bringing back all of the staff that were working pre-lockdown.

I had a look into universal credit should this happen to see if we're able to get any support until he can find another job and we meet all of the criteria except "you and your partner have £16,000 or less in savings between you." We have been saving for a house deposit for 2 years and have just over £16k between us. Pre-lockdown we were viewing houses and have been waiting for the right one to make an offer on.

Now before the obvious is stated that we wouldn't receive support as we have money that others don't which could pay for the rent, bills etc. I've put an example below to explain why I think it's unfair -

Person A earns £30k per year, their outgoings total £10k leaving them with £20k. They spend a little of the money but put over £16k into savings for a house.

Person B earns £30k per year, their outgoings total £10k leaving them with £20k. They spend this money on luxuries such as a new car, designer clothes, a new sofa, the latest iPhone.

Both Person A & B lose their job. Person B receives UC to help pay their rent and bills, whilst sitting on their new sofa in their designer clothes with a nice car sitting in the driveway. Person A must burn through their own savings before being eligible for support, all whilst having 0 luxuries.

So whilst at face value it makes sense that people with savings pay using them, I find it ridiculous that two people who have had the exact same money coming in wouldn't receive the same support based on whether they are good at saving their money or not. Why are people who choose to save their money being penalised against someone who may have spent their money frivolously? IMO if two people both have had the same income they should be eligible the same support, AIBU?

I’m with @LangClegsInSpace, Universal Credit was good enough for the poor who would be able to live well on it if only they didn’t buy huge TVs and all the cigarettes and alcohol, those wasters too lazy to get jobs and oh my goodness it’s shocking we have to pay for their lovely lives from our taxes!
Now suddenly it’s an unfair system, not fit for purpose and the people who deserve help can’t get it or get very little.

I meant to add that it’s a crappy system for everyone, it’s just that now the wider population is beginning to understand that.

I can understand your frustration but we heading for a major depression, the tax payers will have to pick up millions of pounds of debt. Unfortunately you are a casualty of the pandemic, but once your savings are below £16000 you will be able to claim.

What should the savings limit be to claim welfare? 16k? 160k?

It’s shit that you might have to use your savings, but I’m bet some people will be facing eviction once allowed because benefits will be less than their rent.

Try not to focus on those who didn’t save (for whatever reason) and maybe count your lucky stars that you have a buffer.

@marns

As crap as it is OP, there is no point in making up fake scenarios where someone could have the same job but not saved since the same scenario means person b does not have any form of income and money now, while you have 16k meaning you can still at least buy food and pay rent.

I know this is true and we are lucky to have money to fall back on in these times. I think the thought of us having to use at least a grand of our house savings on necessities just because we chose not to spend the money sucks.

Stash the excess in a foreign account, ideally well before you need to claim so that the movement doesn't show up on your bank statements.

If hiding your money is OK for the mega-rich, it's OK for the rest of us.

Everything around the distribution of money comes with rules, and they have to be broad to be workable. It is annoying when you fall on just the wrong side of that (eg if you hadn't saved 16 k, or if you had saved more and spent it on a house already). It is personally annoying. However it would also be frustrating if people on a low income but with loads in the bank could access UC. It's a case of where do you draw the line.
Good luck and I hope your dP isn't out of work long enough to spend through too much your savings.

I know this is true and we are lucky to have money to fall back on in these times. I think the thought of us having to use at least a grand of our house savings on necessities just because we chose not to spend the money sucks.
What do you think everyone else is doing? Your attitude sucks.

@BlackForestCake

Stash the excess in a foreign account, ideally well before you need to claim so that the movement doesn't show up on your bank statements.

If hiding your money is OK for the mega-rich, it's OK for the rest of us.

Nonsense.

You're extremely fortunate to have 16k+ of savings. The welfare system is meant to be there as a safety net, for people to use when they don't have another option. You are fortunate enough to be able to use savings to survive on until your DH can find another job. The majority of people who claim UC do not fall into either of your categories.

You are aware people are living in poverty and surving on food banks or women who have fled domestic violence with their clothing on their back. There has to be a cut off. You can dip into you're savings and he can claim JSA until he gets another job hes not the first person nor will he be the best.

@LangClegsInSpace

Nobody cared how shit UC was when it only affected poor people.

If you think the worst thing wrong with UC is the savings limit then
you don't know you're born.

^^This

Why are people who choose to save their money being penalised against someone who may have spent their money frivolously?

I think you'll find it's the poorest people/families in our society that are being punished. Low-income families on universal credit have been left financially worse off and not being able to provide for their children,.

Parents are struggling to buy clothes and nutritious food for their children and many cut out eating or buying clothes to try to ensure their children do not go hungry. Delays in payments has seen a rise in evictions. The Universal Credit system is riddled with long standing problems. I haven't seen anyone on mumsnet posting about these issues, not until now when it affects their savings. The benefits system is to support the neediest people in society, not those who have savings. So, sorry OP no sympathy here.

Have you even checked how much your DP would get if you didn’t have savings? I think as your income will be taken into consideration, it will only be basic JSA which he will probably get for 6 months anyway.

Benefits are a pittance and long term reliance is damaging to the recipient in my opinion. I couldn’t be jealous of someone claiming.

I speak as someone who has never had to claim a penny.

So spend what you have over £16k and then claim

Benefits are supposed to assist whilst you find another job. Maybe this is the motivation to do just that

Life is unfair on a lot of things, there has to be a cut off somewhere, and for benefits is £16k.

YABU OP. Lifes not fare. You have savings you don't need benefits, you can support yourself.

crikey.....you claim benefits because you have nothing, limited resources

if you've got savings then live off them!

@ItsInTheShed

crikey.....you claim benefits because you have nothing, limited resources

if you've got savings then live off them!

My point isn't that we are unable to survive on savings, we are very fortunate that we do have them to fall back on. My point was more that had we spent our money frivolously over the past couple of years we would be entitled, which seems counter productive that we would then have nice purchases and financial support.

I didn't mean to cause offence to those with less, of course I understand they are a priority.

Im on UC with 2 children. I think its funny that people presume im raking in the money. I get £400 a month to support myself and £250 a month for the children and then obviously my rent paid although the housing benefit wouldnt cover me if i was in private housing as i would have to put about £100 a month minimum towards the rent.

I am extremely lucky and i count my blessings but most of my luxeries like my big tv have been purchased on finance. I'm semi good at budgeting as well so i budget so that i can afford to have a car and pay of other debts - My nice applainces were all bought with a budgeting loan which i pay off every month.

I did also work part time and brought in an extra £200 a month but that finished in march.

The UC system has been crappy & unfair since it was brought in. Have you only just noticed? Because it's only just affecting you now? Savings are for a rainy day. Many could only dream of having £16k in savings.

Im just hoping that now millions more are having to go on UC that they realise how awful it is and that more people complain about it..so it might change something, it is a terrible system, of course if you have worked hard to save all that money of course you dont want to blow it all on rent and bills when you were looking for a house to buy, that must be devestating, sorry to hear

I can't believe I live in a world where someone with over 16k in the bank is moaning that the benefit system won't give them money.
You have savings. A lot of savings. It's irrelevant what you were saving for because the fact is you have money to live on.
A house deposit is a luxury, not a necessity.

Believe me, you're in a much much better position than an awful lot of people.

of course if you have worked hard to save all that money of course you dont want to blow it all on rent and bills
Can you possibly be serious? Who do you think should pay her rent and bills?

It's that line in the sand OP.

It has to be drawn somewhere, and thems the rules.

Wait until your old and needing Nursing Home care!

PS. I do understand what you mean though.

Anyone with savings who pleads poverty can fuck right off as far as I'm concerned.