Am I Fucked - Universal Credit Review

[SilverDoe]

I've got a review of my Universal Credit claim which I understand is routine.

Every year since my youngest child was a baby I have utilised a credit union loan scheme where I pay them my child benefit direct. I use this once per year at Christmas time to cover the bulk of the kids' Christmas presents.

I know this is extremely stupid, but I never ever considered that a loan would be considered income from a UC perspective. I'm paying back the money every week, and I don't actually rely on the loan, I solely pay into it for the purpose of saving the money for Christmas; the interest is low and is worth it for me as like a lot of people on a lowish income, I would struggle to save the money otherwise as there's always something it could be used for. It's for a specific purpose and is only used for that purpose.

Is this going to affect my claim, how badly? Will they close it completely? The loan value was around £600. I'm so gutted and stressed

A loan under these circumstances is more likely to be regarded as capital. If it doesn’t take you over £6000 I can’t see that it will be a problem.

You have nothing at all to worry about. It’s below the £6000 and the only loan they are interested in is over above £6000 or a student loan.

Brilliant, thank you this is very reassuring, definitely nowhere near £6k!

Feel much better now

Benefits adviser here. You're fine OP!

As others have said, its fine

I have had the occasional loan from Credit Union and never a question asked

Amazing, thank you 😊