Universal Credit should relax £16,000 savings eligibility rule

[DreamChaser23]

do you agree? This is to ensure other workers who were laid off and have 16k OR higher in savings should also be eligible for help.

www.google.com/amp/s/www.mirror.co.uk/news/politics/dwp-must-change-universal-credit-21792760.amp

But we’re not talking about regular foreseeable things that might go wrong, we’re not talking about your boiler blowing up. We’re not even talking about weathering a recession, which many people and businesses have done. We’re talking about an unprecedented order from government that businesses must close and people’s jobs must become obsolete. Do I think hardworking and saving people, should be penalised for that ? No way. The threshold could be raised for this period, and then put back down again once this fiasco is over. I’m certain there are lots of industries that will take years to recover from this. I can’t see large gatherings being allowed for quite some time yet. That’s a lot of people facing the foreseeable out of work and who may never get the chance to save again.

Amazing how people change their minds. When UC was a thing that happened to nasty single mums and unemployed people everyone bayed for blood and said punish the scroungers harder, they should plan for being out of work/learn to budget/get rid of luxuries/live on Aldi baked beans/shouldn't have had children etc. And certainly should get no help with buying a house. Now it's nice middle England being affected it's very different of course. Heaven forbid they should have to dispense with their range rovers and school fees.

We’re talking about an unprecedented order from government that businesses must close and people’s jobs must become obsolete.

Because of a pandemic that no one could have foreseen. Not just because they felt like it. We actually are talking about bad luck and unexpected disasters in people's lives, which means they must use their savings to support themselves. I too am a "hard working and saving person" right up until a series of bad luck decimated my savings. Perhaps I too might have made it to the magic £16k number if not for all that. This unfortunately is the bad luck that is decimating your savings I have sympathy with people being angry and sad about it, genuinely I do but I am staggered that people who never gave the £16k limit a second thought when it affected others, now demand it be changed to accommodate them. The entitlement of that beggars belief.

Spot on, DrCoconut. Funny how it's been fine to inflict punitive measures on the poor, working poor, disabled, sick, even some pensioners for years and years but now all of the sudden, it's not, it's unfair, it should be universal income for all, I should be able to keep my personal savings because I am a taxpayer, etc etc

The entitlement is incredible, probably the same posters who enjoy declaring on threads that benefits should only pay for essentials, nothing fun. I still can't get my head around someone having £16,000 in their account and being annoyed about not being able to claim UC. The equity in homes doesn't really make sense though (don't worry, they will take that when you need a care home), with a housing shortage you don't want tonnes of people scrambling for affordable housing, and taking it from those who have zero choice. If you do get support for a mortgage you cant claim it for x months and you pay it back which is fair enough, housing benefit you dont.

Well said @DrCoconut.

Do I think hardworking and saving people, should be penalised for that ? No way. The threshold could be raised for this period, and then put back down again once this fiasco is over.

Wow, so it's fine then, for people who haven't been able to amass £16k in bloody savings to be thrown back on the scrapheap after this 'fiasco' is over, they're not 'hardworking and saving people', after all .

Exactly, Marieo.

I agree with the Original Poster. The £16,000 upper savings limit should be immediately increased. I would set it at £16,250.

Hmm, I don't think they should relax the rule now. I think they either should never have had it or it shouldn't be changed. It's no more or less unfair than it was six weeks ago, surely?

I’m so glad to see posters including drcoconut, deathgrip, mareio and thearchsorceror on here talking sense.

jyclops

I have far less than £16k in savings but wouldn’t dream of expecting handouts when I have savings that can tie me over for a few months

That’s what it’s there for. I saved it as an emergency fun not to be spent unless we were out of work and needed it.

I've seen dozens of threads in the past about people suddenly losing their jobs or having to go off sick for long periods and worried about claiming benefits and a huge amount of replies would be 'where are your savings? That's why you should save, for unexpected events, you've been happy to spend what you earn and now you want the taxpayer to bail you out'

Different story when you actually HAVE £16,000 in savings and don't want to spend it apparently.

What? I can’t understand your logic. I never said people who don’t have 16k aren’t hardworking. I’ve never supported benefits cuts, austerity or UC, and I’m not trying to claim UC with savings. I’m SE so should be able to claim some lost earnings. But the point is 16k isn’t a vast amount of savings to have and lots of ‘middle income’ earners who’s jobs have ended overnight could easily have just above that. They are wealthy comparatively to low earners but it’s not like they’re wallowing in dosh. It will probably take these people half a lifetime to regain those savings. I’d hope most people will be furloughed rather than sacked but I know several people who were sacked before the gov announced the furlough scheme.

I don’t necessarily disagree that there should be a contributory element to benefits as long as the basic level is adequate.

My annoyance is reserved for those who suddenly think they are somehow more deserving than those who experienced similar hardship previously.

I actually think £16,000 is a reasonable threshold all things considered, and if you’re saving for retirement it should be in a pension. Yes, some people will be frustrated if they’re looking for a large deposit, but £16,000 is still a decent amount. If not £16,000 then what? £50k? £100k? £10m?

But the point is 16k isn’t a vast amount of savings to have and lots of ‘middle income’ earners who’s jobs have ended overnight could easily have just above that.

They will qualify in a few months then when they drop below it won’t they? It’s not like they can’t claim until their savings are gone.

I disagree, there has to be a cut off somewhere.

20-25k would seem fairer in protecting those people who have saved for a house deposit, as they’re probably the ones who this will affect most. That would still be a reasonable deposit in most areas (not London or SE) where as 16k really isn’t. With rents the price they are even dropping to 16k would mean many people won’t be able to replenish those savings for many years to have enough to put down a deposit. They will be potentially looking at a life time of renting because of Coronavirus.

But the point is 16k isn’t a vast amount of savings to have and lots of ‘middle income’ earners who’s jobs have ended overnight could easily have just above that.

That is irrelevant, the fact is that it is enough to keep food in your cupboard, and a roof over your head. When the savings drop below that amount people can claim. People in lower paid jobs also try and save, some of them cannot afford to save a penny, others can save a little; it would take them years to save £16k, not sure in what world it isn't much. A privelledged one.

Oh, god forbid someone be condemned to a lifetime of shock! horror! renting due to a global pandemic that's been killing thousands . Such hardship! People in work who haven't been able to save should definitely protect the deposits!

As pointed out, the system is no different from how it was 2 months ago, but now all of the sudden it's unfair! punitive! I should be able to keep more for my house/wedding (but as also pointed out, when it was those nasty single mums and disabled people - who were all faking - it was fine to screw them to the wall), it's going to mean I'll have to go without, I'm more deserving than those . . .

Derbygerbil The stupid part is if I had put in a pension I would be able to claim UC, put I didn’t because the savings were irregular and I might have needed it for an emergency repair or purchase, if you’ve got 200,000 in a pension pot, but under 16,000 savings you can claim UC ,
No pension pot no other assets, min wage but can’t claim,

But the point is 16k isn’t a vast amount of savings to have and lots of ‘middle income’ earners who’s jobs have ended overnight could easily have just above that.

I actually doubt that many middle earners or higher earners have 16k in savings. Higher wages tends to come with higher mortgages/travel costs & childcare costs.

Can't you live off your savings for a couple of months and then claim?

But the money is to pay for living costs now, a pension you cant claim until 55 (except in certain circumstances), so it's not the same as money in a bank.