To think saving on Universal Credit is extremely difficult?

[FirmGreyMember]

It feels like Universal Credit doesn’t really leave much room for saving once basic living costs are covered. I know in theory people say to put even small amounts aside but in practice it seems very difficult when most of the money goes on essentials.

AIBU to think there’s very little opportunity to build savings on UC?

It's not designed to be saved.

Well yes there probably isn’t, but then UC isn’t the ere for people to build savings, it’s a safety net.

It’s not meant to be saved. Doesn’t help though if you suddenly get evicted or your car breaks down.

Saving isnt really the point of benefits. There are plenty of people who are not entitled to any benefits who cant afford to save very much, if anything. Why do you think that being able to save out of benefits should even be a thing?

Our UC didn’t even cover our bills when dh was made redundant, absolutely no chance of saving.

What if something breaks, car, white goods, school trip etc? There’s nothing wrong with having a savings pot for emergencies. You’re allowed up to £6k with no sanction.

It is hard OP, have you done an I&E to see if there’s anything that could be cut back on to put some aside? If you’re paying out on any debt could this be looked at to see if you’re paying too much?

It’s supposed to tide you over until you get working again. If you’ve got enough to save then you’re being given too much.

You put into that pot while you are working, not when on benefits.

Meanwhile their taxes are going towards other people’s savings…

That’s not really the point I was making. I wasn’t saying benefits should leave people able to build significant savings, just that having little to no room to put aside even a small emergency buffer can leave people permanently on the edge financially.

More benefits rage bait. Why do people fall for it?

For anyone on Universal Credit who does have a little left over to save this is a good scheme: https://www.gov.uk/get-help-savings-low-income

It was easier with tax credits - we paid our mortgage off with the old system including support for mortgage interest before they made it into a loan. No savings limit then either.

If you are a job seeker (or LCW) on the basic rate, then it is impossible to live on long term, and no way could you save. Most people end up in debt.

If you have extra element though like for kids, disability, or are topped up... it is possible to save a little depending on your outgoings.
The Gov even have a savings scheme for working people on UC called Help to Save.

I am on UC (LCWRA) and if I did not spend on anything apart from the absolute essentials, then I would some left over to save. But then once you get to a certain amount of savings when on UC, some money gets stopped anyway.

Not rage bait, just a genuine question. If it’s not a topic you want to engage with, that’s fine.

Uc is designed to provide a basic income or top up a low income. It isn't designed to help people save. Many people who don't claim UC aren't able to save.

Helpful to flag but the difficulty for many is having spare money to put into schemes like that in the first place.

Someone on UC does not choose how much they get.

Yes, and the point I am making is that benefits shouldn't be a long-term solution. I have never been entitled to any benefits apart from child benefit. I worked full time self employed and then term time to fit round my children. My husband worked 2 jobs. It has only been in the last 5 years that I have been able to save anything. So again, why should someone who is either not working or working just enough hours to maximise their benefit entitlement be in a better position than a family working the equivalent of 2.5 full time jobs?

I don't work and I do not get anywhere near the same as a single person in a NMW job, let alone a couple.
Maybe look up the actual amounts that people on UC get.

I’m overjoyed to hear you’re unable to save taxpayers money. As it should be.

Plenty of people are on benefits long term because they have no other choice. Yes, in an ideal world they should be able to save a little for a rainy day.

Thank god tax credits have gone if you were using them to pay off a mortgage. Wow!!

But in a world where 10% of the country’s income goes on servicing debt, we need to ensure benefits recipients get enough money to tide them over with life’s basic needs until they’re working again and not a penny more.

You’ve reframed my point into something I didn’t say. I never argued people on benefits should be better off than working families. My point was only that having no room to build even a tiny emergency buffer leaves people permanently vulnerable to crisis. Those are two different arguments.