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Original poster

Universal Credit should relax £16,000 savings eligibility rule

661 replies

DreamChaser23 · 02/04/2020 12:16

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

OP posts:
Imapotato · 02/04/2020 19:10

no, the government shouldn’t be paying out UC credit to those who have the means to support themselves.

Out economy is going to be in a bad enough state following this, let alone paying out millions to people who don’t really need it.

You save so that you have a safety net in an emergency, well folks this is that emergency. you’ll have to use your safety net.

bakedbeanzontoast · 02/04/2020 19:16

@Imapotato I agree. Nothing is fair about this whole situation, as you say the ramifications are going to be bad enough as it is

Hester54 · 02/04/2020 19:18

mochajoes just because they have higher earnings doesn't mean they have to buy expensive things and not save, although I can see now why they do it as they get help

Hester54 · 02/04/2020 19:21

Imapotato so why help those that could of and should have saved?

Nanalisa60 · 02/04/2020 19:24

I do feel very sorry for young people who have been saving for a deposit!!
Hopefully the government won’t count them if they are in a save to buy ISA.

BubblyBarbara · 02/04/2020 19:25

The rule that really gets my goat is pension access. I'm 54 but cannot access my pension pot until next year. I have just under a million in my pension but am destitute and on UC for a year.

BeijingBikini · 02/04/2020 19:25

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.

What? Nothing "comes" with higher mortgages, that is a choice. I've saved a lot while earning between 26-45k by living in a tiny flat, driving a 13 y/o car, buying all furniture and clothes from charity shops, drinking tap water when out with friends. I wouldn't feel comfortable getting a mortgage over 20% of our combined income as it's a bit risky if one of us lost our jobs (very likely now). People have different attitudes to risk and spending. The people earning 6 figures and spending every penny are making a choice.

mochajoes · 02/04/2020 19:33

I'm not making a judgement on what is right or a choice, my point is I don't believe loads of middle earners have 16k plus in savings.

Imapotato · 02/04/2020 19:34

@Hester54

Nothing about this is fair. It’s sucks majorly.

There are people who may lose their homes, their jobs, their loved ones and their lives to this virus.

It must be galling to have to use your saving in this situation but, when it’s over the country will likely be on its knees financially. So you shouldn’t be adding to that by claiming benefits you don’t really need.

CeriseClementine · 02/04/2020 19:38

Christ. Entitlement isn't the word.

Of course it shouldn't be lowered. People who need UC now are no more special than those who needed it last year.

If you have the means to support yourself during tough times then do it. If that means dipping into your £000's of savings then that sucks - the same as it did for people before this crisis. But it's not a bottomless pit of money.

Personally I think being able to have £16k of cash in an account and STILL be claiming benefits is VERY generous.

Babyroobs · 02/04/2020 19:39

One thing that is very unfair is that those still on the old system of tax credits can still have unlimited savings and it's only the interest over £300 a year which is counted wheras on UC you cannot even claim at all with savings over 16k.

Nanalisa60 · 02/04/2020 19:40

BubblyBarbara

You might have had a million in your pension last month might not have a million now!!

Unfortunately loads of people I know pension pots have half in the last month!!

But ha ho maybe another few years and the stock market will recover again. And you will be a millionaire again!!

ivykaty44 · 02/04/2020 19:45

Gosh yes a two tier benefits system, those feckless unemployed with under £16k and another for those hard grafting out of work unemployed who have savings over £16k

I bet you think the feckless should get £73 per week and the hard grafter should get more 🙄

Peapod29 · 02/04/2020 19:46

Babyroobs yes that’s my main bugbear with the 16k cash. It always seemed deeply unfair to me that a considerably well off family could still claim the WTC or child tax ‘element’ yet this was cut off to new applicants. Will there still be people on the old style system? I thought they gave people a 18 or 24 month grace period then it was all over to UC.

Babyroobs · 02/04/2020 19:50

Peapod29 There are still a lot of people on legacy benefits. Obviously anyone having a significant drop in income now will go onto UC but there are still a lot of people on tax credits. Managed migration of people from Tax credits to Uc has barely begun really and could potentially be stalled now with so many thousands of new Uc applications being made.

ivykaty44 · 02/04/2020 19:52

Peapod29

That was why it’s been changed, those on tc will be migrated...eventually (with a million applicator UC not any time soon) unless there is a particular change in circumstances and they have to move to UC

ivykaty44 · 02/04/2020 19:53

Baby roots it took them 9 months to migrate 13 people with numerous staff...it’s not fit for purpose

Hoggleludo · 02/04/2020 19:54

You're lucky enough to have 16k or more in savings. It's in the word 'savings'!!!

Use that before taking it off others who don't have enough to spend for food etc.

And why are all these people one of you spoke about who is having more kids than they can afford to feed?!? Why? Why would you do that? Have kids you can't afford?

BubblyBarbara · 02/04/2020 19:56

Unfortunately loads of people I know pension pots have half in the last month!!

Very good point this is true for many pensions. Luckily I had my provider move me entirely into cash the last few years as I knew I would retire at 55 so I should fingers crossed be okay. I just have to survive a year on benefits first

Deathgrip · 02/04/2020 20:17

just because they have higher earnings doesn't mean they have to buy expensive things and not save, although I can see now why they do it as they get help

Yes, lucky them. A few hundred quid a month and a million hoops to jump through vs sitting on thousands and knowing you don’t have any immediate problems keeping your property or buying food.

The fact that you think they are the lucky ones is staggering.

GatoradeMeBitch · 02/04/2020 20:30

No, in fact at this point in time when some people are in serious financial trouble I think they should lower the threshold. Someone with £16,000 in the bank should not be allowed to take up time in the system right now when there will be someone with 16p in the bank and rent due.

NewYearNewJob123 · 02/04/2020 20:33

This thread is a prime example of who does and doesn't need to claim UC. Those that think £16,000 + 'isn't a vast amount of savings' don't realise that would be beyond the imaginings of millions of people.

Tonyaster · 02/04/2020 20:40

I think it should be reduced to 10k.

Totallycluelessoverhere · 02/04/2020 20:51

I agree tonyaster.

Nanalisa60 · 02/04/2020 20:51

Bubblybarbra

I don’t think you really needs to be struggling on UC with one million in you pension pot that you can get next year, I’m sure you can get a bank loan, or a twelve months interest free credit card to get you through.

Just ask you pension provider to give you a copy of your pension statement to show you have a ton of money on cash coming in twelve months!!
I’m sure a bank would happily lead you some money so you won’t be destitute!!