Universal credit

[PlanetTeaTime]

Please help

My brain is mush and I've been on some calculators but they ask about this financial year gone to calculate it and it confuses me

I'm trying to figure out our finances to see what our income would be if I stayed at home with my baby verses going back to work so I can make a informed decision

Just on my partners wage, our household income is £30K a year before tax

We have savings of £35K and own our own home

Would we be entitled to anything?

Try entitledto @PlanetTeaTime. Fill it in based on what your income will be this coming year. But I don't think you'll qualify for any help. Other than child benefit.

If you were renting you would be likely to get something, the fact that you own your home its very unlikely .

Savings will also make you ineligible . Anything over 16 k

Nope. I earn significantly less than that and have less savings and I'm not entitled to anything.

Not with that amount of savings.

You'd have received help with childcare costs under tax credits.

Unfortunately you would not be eligible for support under UC.

You won't qualify for any Universal Credit at all with savings over £16k, regardless of any of your other circumstances.
Savings between £6k and £16k will reduce what you are entitled to.
Savings under £6k won't affect your claim.

If you have worked and paid tax in the last few years, you could try claiming new-style JSA.

You should also be getting Child Benefit.

Nope, just Child Benefit.

Unfortunately savings over £16k automatically disqualify you from uc, so all you would get is child benefit. The equity in your own home isn't counted, so possibly you could pay the savings off the mortgage then apply, but your on iffy groung both moraly and from a possible fraud/intentional deprecation of assets point of view (not sure on rules), so probably not a good idea, especially as your unlikely to get much with £30k income and no childcare.

NO, just child benefit of £21 per week. You'd be expected to use your savings down to £16k before you'd be entitled to anything else.

With those savings you'll get diddly squat and quite rightly.

Can you go back PT and supplement your earnings with your savings for the first few years of your child's life?

You wont get an Uc with that amount of savings - the cut off is 16k capital.
You could claim child benefit.

@Reachersloveinterest

You won't qualify for any Universal Credit at all with savings over £16k, regardless of any of your other circumstances. Savings between £6k and £16k will reduce what you are entitled to. Savings under £6k won't affect your claim.

If you have worked and paid tax in the last few years, you could try claiming new-style JSA.

You should also be getting Child Benefit.

To claim JSA, op would need to be actively looking for a job which it doesn't sound like she will be. you cannot give up a job then claim benefits without a very good reason.

With £35k in savings, why would you think you'd be entitled to get paid by the government? Actually asking, not sarcasm. Because that's baffled me

No. You are expected to use your own money. Quite rightly too.

The savings thing is a bit shit, to be fair, because it essentially prevents those earning below the breadline from ever owning a house and therefore keeps them in poverty. Not sure what the solution is, mind you. But it is crap.

@peachgreen

The savings thing is a bit shit, to be fair, because it essentially prevents those earning below the breadline from ever owning a house and therefore keeps them in poverty. Not sure what the solution is, mind you. But it is crap.

To earn more?

With that income and those savings you will not get a penny. We earn a lot less and rent our home and dont get a penny either.

@toastandtea Gosh, you've just solved the world's problems. Why didn't everyone else think of that?

[quote peachgreen]@toastandtea Gosh, you've just solved the world's problems. Why didn't everyone else think of that? [/quote]

You were referring to people being able to buy a house. Earning more is the solution to that problem. Poverty is another issue altogether.

Also people are not living below the breadline if they are able to save, so the savings rule is not 'a bit shit'

@toastantea

Also people are not living below the breadline if they are able to save, so the savings rule is not 'a bit shit'

Well tbf if I bought a brand new car with that money, it wouldn't be counted. I checked and we could get £12 a week if I hadn't bothered saving and just spent everything.

FYI everyone, I have NEVER claimed in my life, I have just had a baby and am looking at finances so I can make an informed decision, thank you for the helpful comments.

There's nothing wrong with asking.. I'm just curious as to why with 35k savings you thought you could potentially get paid by the government to stay home? I'm not bring sarcastic, I'm genuinely asking. Do you realise how much better off than a lottt of people you are with that amount?

If you had bought a new car with the money in order to deprive yourself of savings so you could claim benefits then you could potentially be investigated.

Well tbf if I bought a brand new car with that money, it wouldn't be counted.

That's true, my point however was to the poster who was talking about families living below the breadline. Nobody with £35k in the bank is doing that.

@toastantea Okay, here's an example. A recent widow struggles day-to-day because she is now supporting a family on one salary. Her salary is poorer than it could be because she stalled her career to raise a family / works part-time due to child care commitments etc. She receives a death in service payment from her late husband's employer of £20k. It's not enough for a deposit on a house and she can't get a mortgage on her salary. But equally she can't save it and add to it because having it means she's not entitled to UC. Her only choice is to run the savings down until she's entitled to UC, at which point she has no hope of ever building it up again and so is stuck renting forever.

And that's just one example of where the rule can be "a bit shit".

Like I say, I'm not sure what the solution is. But I believe it discourages people from saving and in the long run, that costs both them and the state money.