Universal credit - wages classed as capital

[OUB1974]

I just wanted to check something as it didn't seem quite right to me.

We work but get a small amount of universal credit. Our assessment period ends on our payday.

We have some savings but are under the 6k limit. However, when updating savings in my account it asks for balances for current accounts, which takes us over 6k due to wages.

An example (not actual figures): 4k in savings. Wages of 1.5k each per month (me and dh). Assessment period ends on payday so balances are reported before the bills go out. So they take 7k as our savings/capital.

Is this right? If our assessment period was a day earlier than payday the figure would be such a lot less and we'd have no deductions. The wages have already been taken off our payment (correctly) as obviously they reduce the amount due quite substantially.

They can question to why your withdrawing cash out what for and ask for receipts! Basically if you claim UC it’s very stressful but I imagine they want it this way to get people off it

So if I get a review they could judge what I spend my money on??

yes they can do, people have been judged how much they spend on food shopping how often the window cleaner comes it’s absolutely crazy

You have to send 4 full month bank statements and id to them they will then go through your statements

If you're claiming the right amount, what does it matter what you spend it on?

I don't know if I should be worried about this now

I agree it is a ridiculous system. I declared my saving when I first applied and have money deducted for it. I've actually spent some and have less now, and have done for over a year. Went to update it but decided not to bother due to the same reason as the OP. I get paid both monthly and weekly, from two different jobs, so there is no end to my month really. I never fill anything in and no one has prompted me too, but I am losing out slightly.

It seems very invasive

Are you declaring your capital amount every month? If so then why? You don't have to do that if your capital is already under £6k.

As for what is classed as capital, as somebody else has mentioned, any income from wages or benefits are not counted until the end of the assessment period after you receive them. So you take all of that then whatever is left in your bank account(s) on the last day of the following assessment period (also minus anything received within that period) is what they class as capital.

But surely that would just show the absurdity of their rigid systems to them? Why did you withdraw this cash? Erm, because I have bills to pay and essential supplies to buy. If they somehow think that less well-off people don't have any bills to pay and can live in freezing cold homes, naked and without any food whatsoever to eat, why does UC even exist?!

Yes, it's clearly intentionally designed to ensure as many people fall through cracks and forfeit the money as possible - whether through absurdities like this or people who get their January wages paid early in December being judged to earn twice as much per month whilst conveniently ignoring the following month with no wages at all.

They've so obviously baked shame, indignity and loss of privacy and personal agency into this. Especially considering that most claimants do actually work, but the system allows their fat cat bosses to get away with seriously underpaying them and then forcing them to go cap in humiliated hand to the government for the shortfall.

This does make me think that, if the much mooted universal basic payments ever do come in, will there be a whole load of social behaviour expectations tied to qualifying for them?