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Original poster

Tax credits to UC and savings

104 replies

Ladylilac · 04/10/2023 05:52

We have to move to UC next year , wouldn’t usually qualify for it but on tax credits get a years grace on savings .
Currently have around 35k -38k in the bank between us, 5k of that is children’s accounts ( in children’s names ) which I’ve been told I need to move to a Isa so it’s not counted is this correct ?
we are buying a used car in the next few months before we have to move over , which will then leave us with around 18-20k so over 16k limit .
what would you do , having discussions with my partner whether it’s worth claiming or not because apparently you have to show receipts and declare what spending our own money on etc
would you withdraw the extra money and keep in house in a safe ? Or spend it ? Was going to put some into rent account so that’s covered for a while but we rent with a HA but it seems that’s set up direct debit so only the correct amount goes out each month.
any advice appreciated

OP posts:
MyBedIsMySpiritualHome · 04/10/2023 06:06

Well with that amount in the bank you shouldn’t be getting it.

Poniesandrainbows · 04/10/2023 06:11

Is this a joke?

vodka4mum · 04/10/2023 06:11

MyBedIsMySpiritualHome · 04/10/2023 06:06

Well with that amount in the bank you shouldn’t be getting it.

Not useful

remember1 · 04/10/2023 06:14

Agree with previous poster . With tens of thousands in the bank you should not get anything. That amount is more than some peoples annual salary so you should be living using your own money and not trying to 'hide' savings so you can claim money you clearly do not need

Original poster
Ladylilac · 04/10/2023 06:16

I was asking about the years grace we get on transition, I wouldn’t call 18-20k tens of thousands ? It’s like 2-4K over the limit after the first year.

OP posts:
Overthebow · 04/10/2023 06:17

No wonder everyone is being moved over to UC. Over £30k in the bank and still receiving benefits!

Original poster
Ladylilac · 04/10/2023 06:18

Currently on tax credits and had a leaflet about it stopping and will have to claim UC this will be next year so was asking for advice as just over the 16k limit but do get the first year protection .

OP posts:
MyBedIsMySpiritualHome · 04/10/2023 06:19

My advice is stand on your own two feet and stop milking the system!

FredaFox · 04/10/2023 06:20

Sorry you aren't entitled to anything, you stop trying to hide savings, I'd love to have a quarter of what you have in savings and I work full time without any benefits

Have a word with yourself

Original poster
Ladylilac · 04/10/2023 06:20

We have gone years without a car but now health struggles means we have to buy a car next month automatic due to knee injuries this will cost around 15k for the car. Leaving 18-20k in accounts
other people are far richer I was simply asking for advice not awful comments about being careful with our money and saving over the years rather than wasting on luxuries etc .

OP posts:
Original poster
Ladylilac · 04/10/2023 06:21

The transition year says people with over 16k in savings can still claim . If you don’t like that then write to whoever made the rule

OP posts:
Overthebow · 04/10/2023 06:24

You don’t need to spend £15k on a car, you can get an automatic a lot cheaper than that. Surely that will count as deprivation of assets.

Overthebow · 04/10/2023 06:24

Also it’s not a £16k limit and below that you get it all, the UC tapers off the closer you get to £16k, so you may need to have less than that.

Original poster
Ladylilac · 04/10/2023 06:25

Overthebow · 04/10/2023 06:24

You don’t need to spend £15k on a car, you can get an automatic a lot cheaper than that. Surely that will count as deprivation of assets.

That’s how much they are nowadays we have been looking for months and originally wanted to spend 10k but for anything decent it’s around 15k for a family car

OP posts:
MyBedIsMySpiritualHome · 04/10/2023 06:26

You asked for advice. You got it.

People are understandably annoyed by someone who clearly has plenty of money claiming more from a very strained system.

Like pp above, I work full time and have never claimed, pay a shitload of tax and can’t afford a 15k car or savings. It’s annoying that my tax goes towards people like you milking the system for all it’s worth ‘because you can’.

Potentialmadcatlady · 04/10/2023 06:27

It’s not 16k.. it tapers up to 16k then stops.. but if you have that much in savings then you shouldn’t be getting it. You need to live off your savings first then reapply when they are gone.

Hellohah · 04/10/2023 06:28

Ladylilac · 04/10/2023 06:21

The transition year says people with over 16k in savings can still claim . If you don’t like that then write to whoever made the rule

So if the rules are now important (as they weren't earlier when you posted this thread), why don't you just follow them?
Claim when you can.
Don't claim when you can't.
Stop trying to cheat the system.

Original poster
Ladylilac · 04/10/2023 06:33

Not sure how we are milking the system when worked all life and not claimed anything other than child benefit and tax credits . Leaflet tells us to claim so they want everyone on tax credits to claim and have the years protection . During that first year we will probably spend the 2k/4K so then will be under 16k for the following year , I was asking for advice on the first year but nevermind I’ll find other forums which will actually give advice rather than be angry someone worked and saved without luxuries all there life.
The car itself will change our life no more cold rainy school runs and struggle with shopping etc , our children will be much happier as they also have recent health issues which makes walking long distance harder, cars may be less than 15k where you are but we live quite rurally so prices are high on used cars . Thanks anyway

OP posts:
Poniesandrainbows · 04/10/2023 06:33

Ladylilac · 04/10/2023 06:25

That’s how much they are nowadays we have been looking for months and originally wanted to spend 10k but for anything decent it’s around 15k for a family car

Show quote history

I just bought an automatic estate for £3k. It's a great car with nothing wrong with it. You do not need a £15k car.

Potentialmadcatlady · 04/10/2023 06:44

Ask for advice
don’t like advice given
go somewhere else to get advice you like
ffs

SpaceRaiders · 04/10/2023 06:44

People should be more concerned with the political elite stealing billions under our very noses not a family ensuring they’re claiming everything they’re entitled to!

Op citizens advice are your best bet for this. They can work out for you exactly what you’re entitled to and how the transitional process works.

Overthebow · 04/10/2023 06:47

They’re not entitled to it after the transition period though, they have £35k in the bank.

ZombieBoob · 04/10/2023 06:47

So a car won't be seen as a deprivation of assets as its to improve your life ect. Uc tapers on savings so after 6k you receive less depending on how much you have up to 16k when you hit 16k it stops completely. Head to entitled to website input all your info including savings ect and it'll give you a figure. You can play around with how much savings on the calculator so you'd know what to expect

Overthebow · 04/10/2023 06:47

This thread is why so many people are against the benefit system. Benefits should be a safety net, someone with £35k does not need a safety net.

MyBedIsMySpiritualHome · 04/10/2023 06:48

I am concerned about both the political elite and their chums stealing billions and people feeling ‘entitled’ to hide substantial savings in order to claim benefits that are meant for those struggling.

These threads are so unhelpful for those who really need benefits. Many will see this and feel like benefits claimants are ripping the rest of society off. But the vast majority are not like the OP and recognise they are meant to be a safety net, not a way of life.

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