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?

I have Disney Plus AND Netflix. 😎

I don’t think they are separate issues. There are plenty work working people that also have ‘no room to build even a tiny emergency buffer which leaves people permanently vulnerable to crisis.’ The benefit system should not be providing a safety buffer that a large amount of working families can’t achieve.

Why are you so bothered then? You don't get to decide how your taxes are spent and if someone on UC decides to try and save good for them.

It's not helpful to tell people to work ft since many work part time because working more will not benefit them financially since it will be deducted from UC.

Not everyone on UC is barely scraping by.

I work so get a UC top up but have two disabled children. One is on HRCLRM and the other MRCLRM.

We can afford to go on an abroad holiday annually and I pay £200 a month into my SiPP pension, £50 a month into my LISA and we don't struggle on a day-to-day basis.

I put some of my benefits into savings

And therein lies a massive problem. It’s crazy that people should be disincentivized from working. And of course in the longer term, it doesn’t help the person who deliberately keeps their hours/ earning low because any occupational pension will be peanuts compared to if they’d made higher contributions

It’s not a savings scheme. It’s supposed to just be a safety net until you can get back to work or increase your income.

This

I'm on UC and I save £50 a month and any money gifted by parents/family etc. I have 4.5k in savings. I have a disabled child and a car to run. If my car breaks down I need to be able to fix it. This thread makes me feel pretty awful that anyone would want to deny me that £50 a month. It isn't a lot and I sacrifice to be able to save it.

But most people on uc can't get back to work as their disabled, carers or already work

I think some people just look at the immediate situation and feel it’s unfair that someone who’s maybe not working or working less and getting UC top ups is able to afford to save when plenty of people who don’t qualify for UC can’t afford to save at all. And yes that is a problem (there should always be an immediate advantage in working more, so the differential between benefits and wages needs to be far greater) BUT of course in the long term people in work are going to have a far better older age. It must be grim relying on state pension or pension credits.

This is what I don't understand whether on benefits or not people still need to save for things like a car breaking,new boiler, Christmas, new washing machine ect ect. I don't understand what people don't understand about this.

I don't think benefits are as high as people think the average take home wage in the uk is just over 30k so 60k as a couple so thats 5k a month. benefits are absolutely no where near that not even close. So if a couple can't save anything with an income of 5k and people on benefits can save with an income of say 1k a month (thats more then i get in uc but tried to average it)which then thats a money management problem.

You forgot that people on benefits also have lower outgoings. Council tax support, energy schemes, subsidised childcare, even lower cost days out for the kids etc.

I get none of them things like a lot of people on uc

Except the vast majority dont.

For example, one of the first things to go when you pick up any work is council tax support. For a while, my council tax bill was 25% of what I was earning from my job.

I saved plenty, but we were renting so we got more UC

Obviously YANBU to point out that, more often than not, it's impossible to save anything when you're reliant on UC alone. It wasn't even enough to cover my basic outgoings. The value of saving (and whether it should be valued at a societal level) is actually an interesting discussion point. I think everyone should be able to save at least a small amount per week - the relief having even a small safety net brings is immeasurable. Waiting until people are at rock bottom and then beating them down some more isn't a society I am thrilled to live in.

You can’t understand why a single person working full time on average wage paying a private rental plus bills can’t afford to save? Or a working couple on average wages with a couple of kids in childcare and needing to run two cars to commute? I think that’s a you problem, not money management!

It’s very difficult for many of us who work to save these days too, mostly because we’re giving so much of our wages to those that don’t, so I can’t feel too sorry for them 🤷‍♀️.

Im saying if people on a significantly lower income can do it then why can't you. The majority of people on uc have the exact same things to pay for that people not on uc have. The difference is people with less money usually are better at managing it as they have to. Like for e.g. my mortgage is low as I didn't stretch myself and we live in a cheap area. I don't have a car on finance I have a cheap 10 year old car I saved for. I don't spend £200 in a a hairdressers every 6 week. I get a a dry cut twice a year for £15. I I don't need the latest iphone or any iphone for that matter. My kids aren't in multiple clubs, we don't go for days out every weekend. I've never had a costa or a Starbucks. I own one handbag that I bought of a market stall. People need to learn to live within their means so when something breaks and needs replacing its not a complete disaster.

But your not are you. The majority of tax and ni you pay doesn't even cover your own stuff especially if you have kids. Education and childbirth costs money it isn't free.

Wow. Nice assumptions about how people on average wages spend their money…

Well explain to me what you are spending 5k a month on then because I genuinely don't understand