Universal Credit with Savings

[forjustnow]

Having a discussion with a friend who rightfully receives UC. She was talking about somebody else who is claiming and has in excess of 10k in savings. I have previously been supported by UC and had to state my savings- but is this ever checked? I don't care about anybody claiming anything- I think there are much bigger scammers, largely multinational tax evading companies- but I was just curious as to if certain agencies can access bank details etc?

last time i checked the savings limit was £6,000. and yes i think the DWP can check your bank account 🙄

Deductions start at £6000 and UC completely stops at £16k.

They can check your bank account, it is better to declare savings. I don't think it's reduced all that much but she'll have to check.

You can have 16k, they aren't 'scamming' anyone

No one would know this as we don't know if the £10k has been declared or not.

Well yes, but neither did the op. I'm saying if someone has 10k in savings and acknowledges that then they aren't scamming anyone.

As posted by PP above, it's 6k, then they taper you off until 16k.

I think that's right, however, I do think that those figures potentially need revising. I think it's been the same amount that people could have in savings since I was a kid before they lost their benefits.

I think that if people could potentially save a few extra thousand pounds, maybe some of the families who rely on UC as a top up whilst trying to support themselves could put a deposit down on a house, maybe reducing the costs of keeping a roof over their head, and then not needing the housing benefit element and easing the burden on the state.

I thought this too. Surely being able to save is a key component of getting yourself in a stable, self supporting position.

I agree that the capital thresholds need revising, the limits have been the same ever since I can remember and I'm ancient. It makes it hard for people to save for a big purchase, eg a car that they need so they can do their job, without losing their entitlement.

The deductions for sums between £6k and £16k are relatively small, £4.35 per £250 (or part thereof), so someone with £10k-£10,250 would lose about £73 a month.

I've been claiming benefits for 15 years and never once have been asked to see my bank account. In theory they can of course so I personally wouldn't risk it, but I think they only request if they suspect someone of fraud.

You are meant to declare if anyone in your household has 6k plus. If you/ household have 16k then you can't claim anything. They can check, and I would say they probably do in many cases, but not all. If you are married I think they will count your partners income and can check that. At any point they can summon you and ask for your bank statements. Also they are linked to HMRC so can tell how much you earned and how much tax you are paying.
I mistakenly took on a job (4 hours at £10 ph- so £40 total) during my ESA claim process years ago and they came down on me like a bloody murder detective. The job didn't even actually happen but as they paid me it showed I paid NI of 2 quid or whatever and that triggered an investigation. So yes they can check your financials. For extremely minor reasons in my case!

They do check at times

I have had to recently provide bank statements to UC but all is fine. II don't have savings though but always thought it was having 16K or above in savings affected your UC

They possibly do spot checks like this often, when you think of how many are on UC

Agreed. Once they can start being informed if a person has over £6k in savings I do think a lot of people will be caught out.

I thought this too. Surely being able to save is a key component of getting yourself in a stable, self supporting position
Because you believe that all those not entitled to tax credits/UC are able to save over £6000? I was above the threshold when my kids were little , working FT as a single mum and I was over the moon when I could put £50 away for emergencies. I never managed more than £2000.

It's a luxury for many to save £6000, let alone £16k.