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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:
Greenbutterlfy566 · 02/04/2020 12:57

I agree OP.

Those on PAYE are getting 80% of their wages paid no matter how much savings they have. What If they were to be told sorry, but your not entitled to 80% of your wages as you have over 16k?? Or universal credit?

Then to be told 'tough' that's what savings are for if you lose your job. There would be riots!

Hester54 · 02/04/2020 12:58

Jellycatspyjamas But some people have but themselves it that position by spending to much and now will get help from the government, sorry tax payers

mochajoes · 02/04/2020 12:58

I recognise that it's hard & particularly feel for ftbs as they have been shafted by the house market but I would much rather be person A who has savings & has bought their car outright as opposed to person b) who has a £300 pcp bill & £400 to live off.

Deathgrip · 02/04/2020 12:58

I can recommend a good tax advisor if you need one?

Ah, yet another preserve of the well off - those on PAYE don’t have a choice.

I’m director of a limited company alongside DH. We pay our taxes, we pay more NI than we could do, and we won’t benefit at all from the system right now. We aren’t high earners but we can get by. Many people can’t, so bitching about being unable to claim because you’re sitting on a shit ton of savings (more than £16k) is rather tone deaf when some people are in dire financial straits.

This is about survival, not fairness.

Deathgrip · 02/04/2020 12:59

Those on PAYE are getting 80% of their wages paid no matter how much savings they have.

No they are not. Only those staff who are furloughed, and they may not have jobs to go back to.

backaftera2yearbreak · 02/04/2020 13:00

If you are unemployed and have paid enough NI in the last 2 tax years you can apply for new style JSA www.gov.uk/guidance/new-style-jobseekers-allowance

Derbygerbil · 02/04/2020 13:00

If you've got £16k, you don't need help!

Agreed. I’d have more sympathy if those pushing for this have a shit about this before they had to claim, but now it effects them they suddenly want benefits whilst retaining savings that are huge to most people.

Peppafrig · 02/04/2020 13:01

@Hester54 and some are in the position that they don't have savings as there wages just about cover their expenses . Not everyone who doesn't have savings pisses away their money . Or gambles it away. Way to kick people down though. If you can't afford savings then you must waste all your money Hmm

TabbyStar · 02/04/2020 13:02

what on Earth are savings for, if not an emergency

Mine are child benefit I've saved for 17 years for DD's university / house deposit.

Hester54 · 02/04/2020 13:02

mochajoes But the person who has a pcp already has the car, the person who was saving up will now eat into the savings

Deathgrip · 02/04/2020 13:03

It seems very strange to me that two people in the same job, being paid the same, 1 persons saves a bit for whatever, the other gambles it away etc etc, but they can get help the other cant, how does it what to make you save?

Because you then have access to money, are not reliant on the whims of the state, don’t need to wait weeks to access funds, can be flexible in what you pay for and when...

Your second person can get help because they need to survive and eat. Not having these problems is the benefit of saving money.

If it’s so fantastic being reliant on UC, why isn’t everyone quitting their jobs? I’ve never been on UC, but even I know what a complete nightmare it is.

RoryGillmoresEvilTwin · 02/04/2020 13:03

It's amazing how many peoples views of benefits and what help should be available has changed dramatically in recent times.

There are many many people who never thought they would be reliant on state help, but when anything is mentioned they're told to shut up and be grateful that others are going to work to pay for them!

It seems that lots of people are now realising that sometimes things happen that you have no control of...

mochajoes · 02/04/2020 13:04

mochajoes But the person who has a pcp already has the car, the person who was saving up will now eat into the savings

How long for if they can't keep up with payments?

Hester54 · 02/04/2020 13:04

Peppafrig just giving you a scenario where 2 people earn the same wage, why should one get help the other doesn't ?

WinterIsGone · 02/04/2020 13:04

I feel sorry for people who have scrimped and saved, and will now have to eat into their savings, and also for people who can't afford to save at the best of times. Everyone is just doing their best, surely. You can sympathise with both groups.

I do think it's a bit galling that those who previous earned a lot, spent a lot on themselves, and didn't save when they could have, then get the same help as the other two groups. I know a couple of high earners like that, who absolutely didn't care about poorer people, don't have savings, and will be entitled to help.

But what can you do? They're just lucky I guess.

Derbygerbil · 02/04/2020 13:05

People have been happy for this to happen to others for years . Only difference is now it's happening to them it's not ok.

^
This

goldenorbspider · 02/04/2020 13:05

A deposit for your first house, that you've been saving up for five years while scrimping and living on beans?

A wedding that you've been saving up for for two years?

A car purchase that you've saved up for diligently while others took out PCP or other loans?

^^ if you can afford the above you're not in need of benefits. Have you seen how much it is? It's for the bare minimum to exist on. People have struggled on it for years.

Patsypie · 02/04/2020 13:07

Funny how the middle classes who looked down on people on benefits now want the goalposts moved! If you're lucky enough to have savings then use them! UC is for people who NEED it!

AltogetherNo · 02/04/2020 13:07

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Hester54 · 02/04/2020 13:07

Deathgrip so the person who has been prudent gets penalised and the other gets rewarded, seems odd, very odd, should the government make you have a proportion of your wages paid directly into a savings scheme ?

AltogetherNo · 02/04/2020 13:08

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Serendipity79 · 02/04/2020 13:08

This pandemic is bringing out some very strange behaviour in people. In a "non pandemic" world, if you had savings and you lost your job then you would use your savings. You wouldn't look for government help whilst sitting on £16k of cash??

There isn't enough UC money to go around, who knows what this will cost the UK in the end.

There are people that will lose money due to the pandemic, no two ways about that. And whatever the government comes up with it wont suit everyone.

But people are losing more than money - I'd rather lose my savings than my life or my children's lives.

Peppafrig · 02/04/2020 13:09

@Hester54 cause the one who doesn't have savings won't have money to feed their kids. The one without savings will lose their home. If you think that having no savings puts people in a great financial position then stop saving money and see how great universal credit is.

Deathgrip · 02/04/2020 13:09

But what can you do? They're just lucky I guess.

Lucky?
Who’s lucky - the person with £16500 in the bank and therefore no immediate financial concerns or the person who is now reliant on the state’s nightmare of a benefits system?

I know which I would rather be.

Hester54 · 02/04/2020 13:09

Derbygerbil not at all, why would you look at the rules until you need help?