To think that universal credit wrongly penalises...

[User78890]

Posted a while ago about universal credit and savings... I can't get my head around it.

The rules are that above 6k you get deductions to your claim. The more you save, the more that gets deducted. 16k or above means that you cannot claim.

I am (hopefully) going to be training for a profession for a few years which will be a low wage. I'll have to rely on universal credit as my wage wouldn't cover childcare costs on top of everything else. But where does this leave those who want to save for a mortgage?

Surely anyone who saves will be in a constant cycle as you will then need to use your savings to live on, claim again, and repeat.

Before anyone jumps on me, I know benefits are for those who need it, and if you have savings, yes, you are obviously not in the priority of those who need it. But, those who spunk their money or use it wrongly are unaffected. Those who are trying to better their situation and are sensible, however, are in a constant trap. We are both equally entitled to the same financial help, but one is penalised and the other isn't.

So surely you would be best of spending your money, and you will never get a mortgage (unless obviously you was to secure a higher paid job)...

The inference on this thread is that people should only be claiming it to survive for short periods of time. There is an expectation that people do not ‘live’ off the UC long term and are doing something to improve their situation so they no longer need to. It’s very noble but in practical reality where is the support to do so. Yes they have started adult learning for maths and English to help but that’s pretty basic.

This is why it’s a trap because that isn’t realistic. You can barely save anything meaningful and it seems to be frowned upon that a woman would take a low salary on purpose to retrain and need UC support to do so. There aren’t many other options if you don’t have a well paying or progressive career

Poverty is a trap whether you are on universal credit or not.

Savings are not the answer to that problem.

I do agree that with a lump sum inheritance it is right that this is seen as income. I don’t see how you could argue this any other way. I did feel sorry for the olive grove lady though

@Stripesgalore

Poverty is a trap whether you are on universal credit or not.

Savings are not the answer to that problem.

They are if savings are invested. Property may get passed onto your child. Eventually your mortgage payments will be at some point lower than your rent at some point. (Another saving) If you manage to leave your property to your child/children that gives them potentially a house deposit too. See how that works?

@User78890

I think the point is you should save once your off UC. As UC is for the most at need in society, if you are able to save for a mortgage while on UC do you really need it?

That might work for an individual person, but it isn’t going to resolve the societal problem of the poverty trap.

And benefits should be designed to help the most vulnerable. It would help far more vulnerable people if housing costs were reduced by provision of social housing and rent regulations.

That’s going to pull far more people out of poverty than tinkering with the system so that the least vulnerable benefit claimants can get a mortgage.

Spending money on a night out/day out/toys/clothing whatever you pick isn’t deprivation of capital at all.

You haven't seen some of the decisions I have.
Someone who booked two foreign holidays with an inheritance was deemed not to have deprived themselves but someone else who took family for an expensive night out was.
The difference was intent.

Benefits are to live and pay bills not to save for a home

@LITHIUMcomeasUare

Benefits are to live and pay bills not to save for a home

So as a disabled adult I should always have to be on the bones of my ass and scrabbling to pay bills with not enough money because I was unlucky to be born with a genetic ticking time bomb in my head just to keep idealoques happy? Is that what you're saying?

@LITHIUMcomeasUare

Benefits are to live and pay bills not to save for a home

Oh and to add they don't give you enough to do what you suggest ffs