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?

Our benefits bill outweighs income tax receipts. Something needs to be done.

Why not, if someone has paid in for thirty years, and lost their job - why not?

It's a safety net for every taxpayer, that's what it was designed to do - you pay in your NI, you receive some help when life bites you on the bum.

I bet you would be the first to complain of you needed benefits and could not claim because you have £16.1k in savings...

That is due to PENSIONS not working age benefits.

If you have £16k saved you should be using that to support yourself!

No, it’s not.

No, it’s £16k. Anything over £16k and there’s no entitlement. Anything between £6k and £16k deductions are made.

If I had £16.1k in savings I’d be using that to support myself, not benefits

Think a fair few pp haven't experienced the benefit system.
It's all the money you have as capital a savings account is not set aside and current account only is taken into consideration.

Yes, so what is your problem?

You should use your savings first. No wonder England has the problems it has.

You can... down to £16k

How would lowering the savings threshold help the nation?

It wouldn't.

Do try to understand real life - in capitalist societies humans need money to, for example, buy a car to get to work. Or pay for a training course. Or a flat deposit. Or buy a fridge.

Running people's savings down to nothing costs the taxpayer more, as it results in greater worklessness, greater homelessness, greater ill health etc.

The amount of times I have heard about employees at the Jobcentre giving out completely wrong advice is ridiculous! Always use a benefit calculator. Gov.uk or the DWP have their own one, so you can always print it off and wave it in their faces!

I know through our experience as said up thread it's pennies and not worth getting involved with benefit system.
And yes we were self sufficient for as long as we could be and then had to admit defeat.

They may not be wrong. Does your husband get s occupational pension.

Add in why someone over 25 living at home working part time still qualifies for a percentage of UC!

Yes people do use their savings first - the threshold has been held down for some time.

But it should be higher.

You don't get a fortune.

I have a friend who is a pensioner. Her 40+ age son that lives with her claims UC... and why not?
Are you expecting pensioners to be supporting their adult kids now?

They absolutely should if their savings are less than £16K.

I should be much lower than £16k, utter joke that anyone can have this amount and be claiming benefits, live off your savings!

And you're welcome to do that.

But I think the system I pay into should be there to support me at a reasonable level if I need it.

What are you paying your national insurance for?

They do. It is tapered.

6 k is what you can have before UC take any reductions from your UC. Anything up to 6k is fine to have in savings

between 6k -16k it’s 4.50 for every 250
so if you have 7k your UC is reduced by £18
the 1k over is what is used to reduce any money
Once you go over 16k your UC stops