Universal credit and divorce settlement

[SallyAnn32]

Hello, I'm wondering whether any of you have been in a similar position and can offer advice on how this worked out for you.

I'm going through the divorce process and I am going to receive a payout from my ex as part of our divorce settlement. I currently claim universal credit and help with childcare as I have 2 DD's and work full time. I need to speak with DWP but I've realised today that if you have savings over 16k this can stop your right to claim UC. The payout will be over 16k but my aim was to save this for things around the house, holidays, Christmas etc as they arise. I will be much worse off without UC and as such these savings will quickly disappear by using them for day to day living and childcare costs.

Has anyone been in a similar position to offer advice on how it worked for you please?

I think there are some occasions when a sum like this wouldn't be counted against UC such as if you were going to put it towards a house purchase fairly soon.

So if you already own, maybe something like overpaying on the mortgage to bring your monthly payments down?

Worth asking at citizens' advice but the rules change all the time with UC.

Surely you just use your settlement for things like holidays/Christmas/home etc? I'd imagine you'd put in a new claim when your savings go under 16k due to you then being entitled to it.

Be careful. They have a list of things you can spend your money on and what you can't. To get savings down to below 6k I mean. Otherwise it's seen as fraudulent and you might not get UC.

You have 6 months grace from eg selling a house to buying a new one.

There are Facebook groups for UC advice. Join one fast. Pose your question there before you talk to DWP.

UC credit is for people who would not manage to pay rent, feed their children etc. It's not for people to save money for Christmas and holidays. Before I get bashed I am a single parent, work full time and get some UC but I have no savings and rent. I would not expect tax payers to fund holidays and so on.

As others have advised, put it towards a house purchase or accept that the money is there for you to look after your family and use it for that.

The rule is there for a reason. You can join a UC group but the rules about this are strict for a reason.

Thanks for your replies.

I want to use the settlement for putting into the house to bring down mortgage payments ideally but I'd like to save some for when the DD's are older so they don't have to struggle for uni fees, driving lessons etc. The savings would be in their names and inaccessible but I imagine this will have an impact. Without UC I too would struggle and I have been so grateful for it since my ex left.

@SallyAnn32

Thanks for your replies.

I want to use the settlement for putting into the house to bring down mortgage payments ideally but I'd like to save some for when the DD's are older so they don't have to struggle for uni fees, driving lessons etc. The savings would be in their names and inaccessible but I imagine this will have an impact. Without UC I too would struggle and I have been so grateful for it since my ex left.

Yeah, the putting it in savings in their names, that's probably not going to work.

@SallyAnn32

Thanks for your replies.

I want to use the settlement for putting into the house to bring down mortgage payments ideally but I'd like to save some for when the DD's are older so they don't have to struggle for uni fees, driving lessons etc. The savings would be in their names and inaccessible but I imagine this will have an impact. Without UC I too would struggle and I have been so grateful for it since my ex left.

Wouldn't we all like to save some? They will have to get jobs. I'm also a single parent so agree that it sucks but unfortunately that is life. Can you increase your working hours or work towards a better paid job? That way you can build up savings.

You might be able to put it in a pension. Check. You won't be able to spend it on Xmas presents and holidays.

@Northernsoullover I work full time. I could sell a kidney or become a prozzy but no. I can't do more than that.

@StephenBelafonte

You might be able to put it in a pension. Check. You won't be able to spend it on Xmas presents and holidays.

Pension is a good idea. Thank you.

I appreciate this isn't the worse predicament to be in but it's causing a bit of anxiety nonetheless

Yeah, a pension might be an option. But benefits aren't there to protect savings and £16k is quite generous. A lot of people got caught out, had money saved for house deposit and then lost their jobs before it materialised and yes, they have to use their money until they meet the threshold for UC and carry on renting, not for future holidays, driving lessons or Xmas presents.