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

@Hester54 I work 12 hour shifts too doesn't stop me watching the news and seeing what's going on in the country we live it.

AltogetherNo so you think it fair that I am doing the same job for the same money, my friend gets help and I don't? They could have saved, bought a smaller house, kept an older car

I don't understand why you are arguing about this. There seems to be a general misunderstanding about the depth of the recession that we are about to endure. It will be much worse than the previous recession. We will look back on that wistfully. There will be negative interest rates, possibly even negative mortgage rates. No one will be encouraged to save. People will be actively discouraged from saving. Everyone will need to spend. Everyone.

If savings should be used first (which I agree with), why are employees being furloghed not being asked to use their savings?

*in

@Hester54
It’s pretty basic knowledge of how benefits work to know that we don’t pay out UC to millionaires

Do people understand how little the average Brit has in savings? A third of Brits have less than £1500 and the average amount of savings is just over £800.

Look at the help to save account from the government for those on certain benefits and tax credits. The most you can pay in over 4 years is £2400 and if you pay in the full amount each month and leave it untouched you’ll have £3600 by the end of it. And most people with the accounts cannot do this.

@Hester54 yes that's fair as I said go blow all your savings and get universal credit if you want to claim it so baldly. You chose to save and were in the position too. Maybe you still stay at home and she has high rent to pay. Who knows .

Derbygerbil There is a big difference between being a millionaire and having a tiny bit of savings for your old age that you will have to touch after saving and going without for many years

BTW stopping people gambling it away is the reason for mandatory National Insurance, and is an argument for having higher top rates of National Insurance and other progressive, welfare-supporting taxes.

As a nation we know perfectly well that the majority of us will need state support at one point or another in our lives. Progressive rates of NI and tax taken over our lifetimes helps us spread those costs throughout our lives, as well as between people who through luck need more support and those who need less. We might even need the support earlier on, and make significant contributions later on.

As pointed out on this thread, there are many people who simply won't put that money aside unless forced to, even when they could perfectly well afford to.

The 16K rule is invidious in that only savings and shareholdings are considered as 'capital', personal possessions aren't. Have 16K in the bank and you will be penalised, own a 16k car (or jewellery, antiques etc) and you won't be.

Peppafrig I was only in a position to because of going without, not wasting it

£16,000 is not a tiny bit of savings and you must have over that to not be eligible so it's it's so tiny . Go spend the few hundred you have over the limit and claim it. The way you have no concept of real life I imagine you have a lot more than the £16,000.

Ultimately this whole situation is showing just how fragile a lot of people's lives are. We have it drummed into us to buy a house, plough into a pension and save. Many people have done that, thinking it makes them "safe". Now people can't pay their mortgages, pensions are decimated and people with savings get no help.

I'm in the category where I have enough to be happy, but not so much that I'm at risk of losing anything (and could get help if I needed). That's probably the only place where you are genuinely safe. Other than maybe being so rich you really don't have to worry, but not many achieve that.

People are finding out that if you do all the "right" things it doesn't necessarily protect you in a situation like this. That's hard for people to take.

Yes, I agree.
Normally, I do think you shouldn't be entitled with savings, but this is different.
This is to even up the loss of income due to no fault of your own.
Those offered 80% of their income isn't dependant on them having less than 16k in savings.

I totally agree with you OP. I know people who have scrimped and saved like there is no tomorrow over the years and yet they wouldn't be entitled to UC because of it. I've always thought this and hopefully now other people will see it too.

I agree. Equity in a rental property also counts as savings. We can’t access that equity, our tenant has said they can no longer pay their rent and neither of us are entitled to the 80% employed or self employed scheme.

So we have zero money coming in and zero support, simply because of money in a property. That would be impossible to sell right now even if we wanted to!

@Meruem but this isn't a new rule that's just been implemented. People have been happy for this to apply to others for years . Now it's applying to them that's the problem .

Actually not sure what your stance is so by I agree I mean I agree they should increase the limit.

AltogetherNo I think you have the wrong end off the stick, Torquay would be our first holiday for 5 years, but its ok because I having savings

Sad to see the "I am alright Joe" attitude a lot of people have. Where were these people when policies such as bedroom tax caused suicides/a lot of hardships? Or when people were being sanctioned unfairly? Or stupid policies like the 5 week waiting time?

Now that it has happened to you want the rules changed how convenient. Just shows you never know what life will bring one day you might have a lot then next you could have nothing.

Seen posts before like "why should I pay my taxes on people on benefits get a job!" Well similarly you can say why should the government subsidize 80 percent of salaries but continue to leave the unemployed with nothing? And yes I do work I am furloughed at the moment but I realize that I am privileged something that many people forget nowadays. Stop watching Benefit Street and realize most people on benefits are genuine and deserve a lot more help which hopefully we are realizing..