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?

Yes, that's what it would have been used for, but it still would have been classed as savings, i.e. money in the bank.

It's about 2-4 months in essential expenses for most people, which is enough to tide you over for a bit, I think it's perfectly reasonable. Most gainfully employed people don't even have 6k saved.

There is contributions based JS. He could have claimed.

I think the 'savings' gives recipients a buffer before they need even more support (thus costing the State more).

My savings would have allowed me to pay my mortgage and bills for longer, allowing me a bit longer to find work and get back on my feet w/o having to sell my home and car and register for all the benefits that those who have nothing at all are entitled to.

Editing to add - I was made redundant in Sept and found work in Jan, but those 3 months were really horrible time.

I claim uc (both working parents) but my children have a junior Isa which I added too years ago (when I could afford too) and family members have added to along with birthday/Christmas money from family but because it has to have an adult account holder named on the isa, it counts as my savings too even though I have never touched it and it’s their money not mine. So even though I don’t have even close to that in my account, my savings are classed over 6k.

Don't be silly - very few people ON benefits are saving up.

It's a threshold for people who get made redundant after 30 years of contributions to the state - so they can get a few months help while they look for their next job.

Honestly - people are so obsessed with being 'tough' they forget how the real world works.

I understand your plight I think it can be upto £50 max month in UC match it but I'm sure it's untouchable for two years.
And the max amount is a big ask for most UC claimants .
Life isn't a bowl of cherries for most on UC despite what the Daily Mail would have people believe.

My partner had to stop working because of health issues. He had critical illness cover, so got a £24k payout. He paid off his car and mortgage. He then got bowel cancer, went through the PIP process and was owed nearly £4k by the time it went through.

Universal Credit has replaced ESA, so the savings amount includes those who are disabled. £6k won't keep a house running and get a decent car. Many disabled people don't get the PIP level they should be on. Even though my DP drives, he can't walk from the car park, so has to get taxis to his appointments. £6k isn't enough for even a shared ownership deposit, so the savings level is a barrier to home ownership. A fortune is paid out in housing benefit. It doesn't make sense to keep people at rock bottom.

Yes i have been told that a couple of times on here. The woman at the Jobcentre was adament though.

She was wrong.

As a pp said the limit has been the same for thirty years. It used to be the equivalent of a year's wage. Now it's the equivalent of three months' wage.

I can't see that it makes long term economic sense, to deliberately prevent people from improving their circumstances by saving. Eg a universal credit claimant will never be able to buy a home and will instead keep claiming rent money every month, potentially until death, which costs loads and loads of money, all going to landlords. That, to me, is madness and a really poor use of public funds.

But, that's the policy.

Talk to citizens advice. They make the benefits system so complicated even the staff don't always understand it

Annoying. He got a job though so all is well, although it felt like a kick in the teeth at the time. He is 63 and the Jobcentre could not have been less interested.

Sounds like a Catch 22 for you. I was in a similar position. I became physically disabled (mobility impaired) in 2005 and had a very uneven front path making accessibility very awkward. I asked for a Disabled Facilities Grant to help with this, but it came under normal wear and tear, so wasn't covered. In the end, I got a loan and paid for the whole front garden to be block paved.

Have you heard of the Disability Facilities Grant? They are a LA based grants system that can apply for funding to adapt your property. We have had some changes made for our youngest who uses a wheelchair.
Excuse me if you've already been made aware.

www.gov.uk/disabled-facilities-grants

I have an acquaintance saving up for a stairlift because she’s disabled. Met her at a pain management group. The council won’t fit one because … she has savings.

These savings mean she also doesn’t qualify for UC. Nightmare. She lives on PIP, or rather doesn’t.

It’s a lousy system.

6k is nothing if private renting.. often having to find a new deposit and rent upfront every 6-12 months, I’d say most people on UC are private renters

Yep, my DP paid over £3k for deposit and moving costs.

Then they shouldn’t be applying for benefits!

Maybe it’s simply a case of simple maths. There’s 12 months, so it’s easy to divide 12 by 6 giving £500 per month. A nice easy calculation. Maybe something as simple as that.

If you have over £16k, then you wont get benefits.
If you have less than that, then you can apply. More than £6k, you lose benefits AND you get the bonus of all your spending being scrutinised.

39% of people have less than £1,000 saved. It should be lowered.

But he should have been able to claim Contribution Based JSA which is based on recent NI contributions, so not means-tested. Didn't he use a benefit calculator to check?

Um, they are probably people on UC. What would you personally gain by them having the savings amount lowered?

Its not just savings its the whole of your account my mortgage and bills cost more then 1k so I shouldn't get uc