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?

https://www.gov.uk/get-help-savings-low-income

If you work and claim UC, you get 50p for every £1 you save for 4 years.

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How do you do that and can you keep dipping in and out of it. I've never heard of it

May I ask why you don't qualify for UC. Do you have other income?

Well then, go on benefits and you can take advantage of the same scheme too.
What is stopping you?

It should have been updated long ago. Its preventing people from bettering themselves if they cant save for training/education (theirs or their childrens) home repairs, vehicles, house deposits etc. Its not alot of money and having 6k but no housing or income is not a stable enough position to be removing support from people.

Only on very limited amounts.

That is probably one of the stupid comments I've ever seen on mumsnet and that says a lot

No I'm sure you've to leave it in over a 2 year period whilst in the scheme.

Well that makes no sense. If I have £5 left at the end of the month, then I should have my UC stopped? Why?

Don't be silly.

As a taxpayer there is a huge risk in running people's savings down to low levels - you make them very vulnerable to any cost, leading to homelessness (expensive for the taxpayer) ill health (expensive for the taxpayer) and crime (expensive for the taxpayer).

I do wish people would try to use sense and logic when discussing policy.

Is there anyway you could do the renovation in stages so that you could pay then save up to £6k again? Or pay a hefty deposit & continue to save?

It’s three months salary at minimum wage if you think about it
Which everybody should have

That wouldn't work for me as soon as I start saving something breaks or the kids need something.

And what if the Bullders run off with her hefty deposit there’s literally no way of recovering it in the construction industry is overrun by Cowboys

And as min wage has risen, the savings thresholds should have risen accordingly.

I think savings for a house deposit should be an exception to the 16k threshold. It would help people to get away on relying on Uc for rent and would save money in the long run.

Yep, there was a couple of threads on here about this recently. One was OP not believing that some people do not even have £100 in savings, and the other was that all women shoudl have £20k stashed away.

The current rate up to 16k is more than generous. If you can save that kind of money you should not be getting benefits

They do ask for bank statements, I think going back six months (but can ask to check further if necessary, I believe). If they think you have deprived yourself of capital in order to claim UC, they won't give you any money until such time as they think you would have normally spent that money.

We don't have anywhere near that in savings but £6k is just about enough to buy a 2nd hand car if ours packs up.

I think money for buying property is disregarded, but it is very time limited.

I don't think anyone is complaining about the 16k cut off people are complaining about the hassle of the 6k reductions

No one on benefits is saving that amount, but people applying for benefits might have that amount saved.

And others - like my husband - couldn''t even claim Jobseekers after paying tax and NI for 40 years as he had a small pension worth considerably less than £6000.
So much unfairness in the system.