To wonder why the UC savings threshold is £6,000?

[GiddyLurker]

Why is the Universal Credit savings threshold set at £6,000? What’s the reasoning behind that number?

It feels quite specific and I just wondered whether there’s a particular logic or policy decision behind it?

Oh, and at that time, it would also have represented a 10% deposit for a house and have money for the assorted fees and moving costs so that somebody could move to take up a job somewhere else. Almost as though it was intended to make it possible to get out of the benefits trap.

Lots of people on UC don't have £6k in savings either. I have £0 if that helps.

Oh I'm sick of this shit.

People on UC long term rarely have any savings.

Someone who has paid in to the system for 20, 30 years shouldn't have to run everything down to rock bottom before getting short term help after they've paid in for all their working years.

This country has completely lost the plot about benefits.

But it reduces at 6k. Im not really sure how it works but say you take 2 years to save for a new car. Bearing in mind the money in your account isn't just savings its money for mortgage bills etc so realistically its only about 4k of savings you can have. So when you get to the 6k mark you inform uc they mess about with your payments then you buy a car you no longer have 6k a week later and you have to contact them again to put it back to where it was obviously this takes time there will be some kind of admin error like there usually is now you have no money.

But if you are a homeowner it's sensible to have a little cushion of savings for unexpected expenses, such as the boiler needing replacing etc. It's been £6000 for donkeys years, even when UC didn't exist and it was Income Support.

I seem to remember these figures from when I first signed on in the late 90s but thought surely they must have increased it since then?

It's not a handout, it's social welfare.

If I were to claim UC, it'll be after decades paying in to the system, and that's what I'm bloody paying my national insurance for.

This and 6k now isn't what it was 10/20 years ago

That does tend to be the case ,I was made redundant and got £15,000 out of curiosity I done the benefits calculator at £13000 £3.12 a week .I used pension money also to try and avoid benefit system whilst applying for hundreds of jobs and had to admit defeat once our savings dwindled away.

Why should the government pay for your living costs if you have lots of savings?
Live off of them... down to £16k, and then you can claim.

So what's to stop people buying jewellery/ gold and saying hey I've got less then 6k in savings now?

I see yours posts on here alot about UC, and I know you work a bit too.
Do you know about the Help to Save scheme?

But surely if it was redundancy money it wasn't savings, it was money to support you until you found another job?

Nothing which is why its better to raise it so people can save for things like cars and home improvements without getting in to debt

People on here are griping about £12k, and £6k - have you not read the thread?

No what's that?

The issue is, many disability adaptations cost more than £6k so it can stop some disabled people from being able to save up for things that could massively improve their quality of life.

I've been assessed as needing a power wheelchair by the NHS but denied funding for one as my flat isn't suitable to get one in and out (i agree with the decision btw it really is impossible).

In order to get the wheelchair funded I'd need to spend around £10k+ to have a wall ripped out and replaced with a patio style door + ramp plus have all my doorways widened. Or move - but I've not found a single property in my area suitable in over 2 years of looking and I need to stay in the area as my carers are here. I can't get a building grant as I already had one to redo the bathroom as I was no longer able to bathe.

So I either need to pay out of pocket for the chair (£7k) and then build some sort of outdoor storage, or pay for the renovations, and get a funded chair. Either way I'd need to save up more than the limit.

The £6k limit also hasn't changed since 2006. Adjusted for inflation it should be over £11k so £12 isn't far off.

It's definitely £16K, but you don't get the full amount of UC entitement unless you have less than £6K in savings. It tapers off. You used to lose £1 a week for every £250 you had above £6K, so I assume it's still the same, but I haven't checked.

A scheme that allows people on benefits to save and likely get a better interest rate than those not on benefits will ever get.

Yes, it reduces at £6k. It’s the first threshold. Relax.

It's all classed as capital and I do think it's right to be self sufficient till it dwindles down a bit.

£4.35 per month for every £250 over 6k, so yes about £1 a week.

That's interesting. I knew it had been the same amount for as long as I could remember.

I honestly don't think people realise how much the nhs doesn't cover and what a postcode lottery it is

It is a good scheme, but only for extremely low amounts.