Savings limits - time for it to be upped?

[Goose38]

Just wondering if anyone knows if there’s any plans for the savings limit to be upped .
I think it’s crazy it’s been capped at 16k for so many years, this needs updating.
How is anyone meant to improve their lives with such a low limit . If anyone knows of any government petitions etc would be grateful.

I would imagine the majority of people this affects when they first start claiming UC (or try to and can’t, as they have too much in savings) - either saved from earnings or inheritance or whatever, then they lose their job and find they can’t claim. Or people inherit while on UC and it gets cut off as a result. I can’t imagine many have saved the £16k while claiming UC!

It’s a tricky one when saving for a house deposit though isn’t it…I saw some people made redundant during Covid who’d been scrimping and saving for years and had a good deposit built up but not quite enough to buy yet. Lost their jobs and had to use up their savings as couldn’t get UC. Then had no deposit (or at least a much smaller amount) when they found a job again. Seemed a bit unfair, because had they just spent all their money when earning they could have claimed UC. I don’t know what the answer is though, because the funds have to come from somewhere and in general I do think those with the means to support themselves should do so rather than the tax payer funding them.

I don’t disagree but there is a stigma that exists with a certain type of benefit and not with others. I don’t see people saying pensioners shouldn’t be able to save their state pension.

I think it should be lowered if someone lives in social housing as they do not need to pay for boiler, roof etc repairs which is why home owners/mortgaged people need savings. If in private rented also need some savings for moving costs etc but maybe not as high as 16k.

It should be lowered in my opinion to a small emergency fund or enough to save up and buy a second hand car say £8000. If you can save more than that you don't need government money.

I think the lower limit of 6k is very low. If you're in the private rental sector, much of that would be wiped out if you had to move. Not to mention the 5 week minimum wait for UC.

I think there should be some sort of taper, say if you've worked for the last 3 years you get Jobseeker's Allowance AND housing benefit, for a set number of months before it tapers down with no limit on savings, and then eventually moves to means tested UC - This would mean those who are temporarily unemployed are not draining their savings- this is how it works in most EU countries.

Agree with what another poster says about social housing/private rented, there's such a massive disparity, it's very unfair.

I’d lower it too, I don’t think anyone should be claiming with £16k saved up. There’s plenty of people not in benefits who can’t save up anywhere near that amount. A small emergency fund like £2k should be allowed but no more.

I agree that if you can afford to save child benefit you don't need it. I would be in favour of it being scrapped and rolled in with UC.

It's difficult.

Someone (renting) may have saved years to gather a deposit on a property, and then made redundant from their job and have to live off this money before they can claim benefits. Their deposit is then gone.

Whereas someone else who owns a property, even if it's worth millions, can claim benefits if they become unemployed as long as they don't have £16k in the bank.

I don't think benefits should subsidise people who have a good savings pot, but the system can seem unfair (but then isn't life?)

I agree.

This is a wind up post

Redundancy settlements didn’t used to count as savings when I was made redundant 20 years ago. However when I was made redundant for a second time in 2020, that had changed and my settlement was considered savings.

I think the limit should be raised for when they start deductions IMO. Maybe 8k instead.

But why? Benefits are there for people who don't have enough money, if you can save 6k you have enough money.

Cost of a ok secondhand car so could be fair. A lot of people do work jobs where they need a car but are not paid well. Cheaper than finance or a loan too.

Thinking of warehouses in the prime locations road wise for trucks but no public transport.

this. How is it fair that someone who earned £100,000 a year but spent every penny would be entitled to claim, as would someone who had never worked, but someone who worked for years, earned £30,000 and lived incredibly frugally to keep some savings to try and be responsible wouldn't? It's pretty much encouraging people to be reckless because the state will bail them out.

I think everyone should get 6 months UC/JSA whatever their savings, either once a lifetime or every ten/twenty years max. After that time then fair enough, either accept you are going to have to get any job you can, not just in your preferred industry, or accept you are going to have to dig into your savings.

For those saying it should be tapered - it is - it's reduced from £6000 upwards, £16,000 is the point at which you get nothing.

If you want to improve your life get a job.

I think everyone should get 6 months UC/JSA whatever their savings, either once a lifetime or every ten/twenty years max. After that time then fair enough, either accept you are going to have to get any job you can, not just in your preferred industry, or accept you are going to have to dig into your savings. and how are you proposing to pay for these handouts?

This is one of the reasons why we’re up shit creek as a country, because benefits spending is out of control, but of course nobody wants to admit that.

Snap.

I claim UC and have a job. Did you not know that both can be true?

The ISA allowance is £20k, pension allowance is £60k. On savings interest there’s only tax paid above £1000 (or £500 if 40% band).

What are you referring to by a £16k ‘savings limit’ ??

They mean the limit of how much you can have in savings before you lose benefits.

Like many PP, I can only dream of being able to save £16k so my automatic response is to think “gosh, no. That’s more than enough!”

But…

I’m also incredibly privileged to have had help from my parents to get a deposit on a house, and to have bought a couple of decades ago. For people who don’t have that privilege and who are not allowed to save more than £16k, house ownership becomes actually impossible.

I think there should be some sort of compromise: up to £6k in ‘normal’ savings then an (unlimited?) savings fund that can ONLY be used for a house deposit. That way, inheritances, family gifts, etc, could be saved, and the chance of a family no longer needing tax payer support in the future might be increased.

That’s exactly how it works in Ireland. If you lose your job you are entitled to jobseekers benefits for a period of time regardless.

https://www.citizensinformation.ie/en/social-welfare/unemployed-people/jobseekers-benefit/

there are a few terms and conditions but it’s essentially dependent on PRSI payments.

Such a stupid comment.