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Original poster

Savings & managed migration

28 replies

Sunsetshimmer1 · 29/12/2023 06:51

No nasty comments as genuinely looking for advice without nasty comments for being savvy and saving over the years.

Family of 4 , ( children 14,8 ) received the dreaded letter and have until start of March to move over to Universal credit from tax credits unless there is an extension I could get somehow?

My long term partner works around 35 hours a week roughly comes out with £1500 a month.

I do not work as I look after the children school runs, housewife duties etc.

We have savings of 20k although it’s slowly going down as dip into it for various things now and then eg just had an electric and gas bill quite high , only 7k is locked away in savings account, other 13 ish is just in normal current acc . I saved most of this many years ago when I worked full time.

Will I be expected to work too?
What will happen regarding savings is it better to use 4K for rent / bills in advance if possible etc as been told 16k is the limit.
On tax credits savings didn’t matter etc .

Does it include children savings? As they have their own kids saver ( one has just under 4K , one has 1k ) they do not withdraw from these and we only put money in now and again but would take us quite a bit over if counted.
Just for extra information we rarely go on holidays etc not been for years so thinking a U.K. summer break next year which probably would cost £800 ish , would that be ok as heard universal credit ask what spend money on etc which I don’t believe in as it’s invasion of privacy.

Any advice for savers appreciated

OP posts:
dheith · 29/12/2023 09:21

You can get transitional protection if you are migrating from tax credits, so your savings over £16k are disregarded for a year. There is still a deduction for the savings between £6k-£16k though. After a year you'd be treated like any other UC claimant and £16k savings would mean you couldn't claim anything.

Children's savings don't count if they are in the child's name.

People have managed to get an extension for the migration deadline of a few weeks, by calling near the deadline and usually it's because they haven't been able to get support with applying or have been ill etc. They don't check why, so it's probably possible to get a short extension just by calling and giving a plausible excuse.

Catsknowbest · 29/12/2023 09:28

dheith · 29/12/2023 09:21

You can get transitional protection if you are migrating from tax credits, so your savings over £16k are disregarded for a year. There is still a deduction for the savings between £6k-£16k though. After a year you'd be treated like any other UC claimant and £16k savings would mean you couldn't claim anything.

Children's savings don't count if they are in the child's name.

People have managed to get an extension for the migration deadline of a few weeks, by calling near the deadline and usually it's because they haven't been able to get support with applying or have been ill etc. They don't check why, so it's probably possible to get a short extension just by calling and giving a plausible excuse.

All completely correct advice but be prepared to detail use of savings once the protection is over. Anything seen as deliberate deprivation of capital to get it below £16k will be flagged, same for calculation of tariff deduction between 6 and 16k. Keep receipts for all reasonable expenses just to be fully prepared.

Catsknowbest · 29/12/2023 09:32

Also where you don't believe in the invasion of privacy I'm afraid you will have to get used to it on UC. My partner received a small army pension of just over £8k and I had to take every single statement covering 3 months for all our bank accounts, savings account and even small credit union account to the job centre, as well as the paperwork from the Ministry of defence proving the amount. All joint UC claims treat any joint contents of all bank accounts in the adult claimants names as the total for the claim.

Soj34 · 29/12/2023 09:37

Yes you will have to look for 30 hours work pw.

Catsknowbest · 29/12/2023 09:52

Soj34 · 29/12/2023 09:37

Yes you will have to look for 30 hours work pw.

Yes sorry I didn't cover the work part; I believe above is correct but double check if you need to. Tbh OP if you were back at work you wouldn't have to worry about who is looking at your savings if both of you being at work takes you off UC so it could be a plus for you in the long run. I am going back to work in Feb. My partner had 2 strokes, on top of some armed forces related conditions, so I have been caring for him. I'm not obliged to go back to work but I am because I want us off the UC system even if we are a bit worse off. I have put a care plan in place for daytime and will still do his care before and after work. We now only have savings of £5.5k but we want control over our lives. He cannot work again but I want to and I am 13 years younger than him. The UC system can be very invasive and if you have been on TC this can come as a bit of a shock.

Catsknowbest · 29/12/2023 10:01

This clarifies what soj34 said

Savings & managed migration
Babyroobs · 29/12/2023 10:48

As others have said, any savings over 16k are protected for 12 months.
You will still have deductions on the amount of Uc you get for any savings between 6k and 16k.
Things are changing on Uc with both of a couple now expected to work especially when your youngest is 8. Not sure when these rules are coming in but yes they are long overdue.

Catsknowbest · 29/12/2023 10:49

Babyroobs · 29/12/2023 10:48

As others have said, any savings over 16k are protected for 12 months.
You will still have deductions on the amount of Uc you get for any savings between 6k and 16k.
Things are changing on Uc with both of a couple now expected to work especially when your youngest is 8. Not sure when these rules are coming in but yes they are long overdue.

The rules do apply now on UC for couples

Babyroobs · 29/12/2023 11:02

Catsknowbest · 29/12/2023 10:49

The rules do apply now on UC for couples

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Ok thanks. I have heard conflicting stories recently where some people have been left alone if the other earns above the AET so wasn't sure if it had changed yet.

Catsknowbest · 29/12/2023 11:08

Babyroobs · 29/12/2023 11:02

Ok thanks. I have heard conflicting stories recently where some people have been left alone if the other earns above the AET so wasn't sure if it had changed yet.

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I think there is still some confusion as often with the DWP! But that was the latest info I could find. I think like me your background might be WB so you'll know how clear it can be sometimes 🙂

DragonFly98 · 29/12/2023 11:12

Catsknowbest · 29/12/2023 10:49

The rules do apply now on UC for couples

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They don't unless you get an advisor that doesn't know what they are doing. It's still ok to earn the AET between you. @Babyroobs its not long overdue at all there are so many reasons why earnings should be household and not individual. There are so many people who are sick or disabled or their dc are or whose dc have ESBA but they cannot claim disability benefits. Those people need to be at home. The AET exists for this reason. Making both people in a couple work is only to appease those who hate the idea of others claiming benefits. It's a Tory vote winner and it's very wrong.

Catsknowbest · 29/12/2023 12:04

DragonFly98 · 29/12/2023 11:12

They don't unless you get an advisor that doesn't know what they are doing. It's still ok to earn the AET between you. @Babyroobs its not long overdue at all there are so many reasons why earnings should be household and not individual. There are so many people who are sick or disabled or their dc are or whose dc have ESBA but they cannot claim disability benefits. Those people need to be at home. The AET exists for this reason. Making both people in a couple work is only to appease those who hate the idea of others claiming benefits. It's a Tory vote winner and it's very wrong.

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The rules apply if there aren't circumstances such as LCW/RA or child care or other care responsibilities. I'm well aware and fully agree that in those circumstances- and from personal experience if you read my earlier comment- that there are circumstantial exceptions. There are circumstances for carers of disabled children, young children, disabled adults. Those on carers element on UC have no work related commitments. And a benefits adviser knows this and will use the correct and relevant calculators. If you look further into UC for working couples and those with different family dynamics you will see this.

Catsknowbest · 29/12/2023 12:10

In addition, if the AET is met for the couple and all circumstances are taken into account then it will always be down to the claimants circumstances; if that is a combination of hours worked that is acceptable for the claim it could always very from case to case.

WithACatLikeTread · 29/12/2023 12:24

Yes you will be expected to work if you claim UC especially with the age of your children. Unless they have a disability why wouldn't you work now they are at school?

Yes I am aware of the couples AET and at the moment your partner earns enough but I would expect that to change and you to be told to look for work.

Original poster
Sunsetshimmer1 · 29/12/2023 18:17

Thanks for your replies so far. Yes it’s difficult for me to get work around my partners hours as he is in retail and shifts change a lot only knowing two weeks ahead . Also 8 year old is undiagnosed emotional needs etc the only job that would suit me is a school dinner lady and I did apply earlier this year with no luck , but I’ll keep looking it a very hard to find a weekday job during school hours but if I can get a job I will do it.
I really am unsure about the privacy issue I don’t believe in it as it’s our savings to spend how we wish etc . I guess we will claim for the one year and see how it goes , whether it’s worth it etc.

OP posts:
DragonFly98 · 29/12/2023 18:28

Catsknowbest · 29/12/2023 12:04

The rules apply if there aren't circumstances such as LCW/RA or child care or other care responsibilities. I'm well aware and fully agree that in those circumstances- and from personal experience if you read my earlier comment- that there are circumstantial exceptions. There are circumstances for carers of disabled children, young children, disabled adults. Those on carers element on UC have no work related commitments. And a benefits adviser knows this and will use the correct and relevant calculators. If you look further into UC for working couples and those with different family dynamics you will see this.

Show quote history

You completely missed my point there are thousands of people that are carers that are not able to prove that there are carers. There are thousands of people that have LCWRA but fail the assessment. So many people cannot prove the reasons they cannot work , the couple AET helps to mitigate this.

greengreengrass25 · 29/12/2023 18:39

Could you look for a TA role OP?

Could you be a volunteer at your dds primary school to ease yourself back into work

Catsknowbest · 29/12/2023 19:10

DragonFly98 · 29/12/2023 18:28

You completely missed my point there are thousands of people that are carers that are not able to prove that there are carers. There are thousands of people that have LCWRA but fail the assessment. So many people cannot prove the reasons they cannot work , the couple AET helps to mitigate this.

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I didn't miss your point at all- I was unpaid carer for my mother for 11 years and am a carer for my partner now, as I explained in one of my earlier posts. The system is by no means ideal- I was simply clarifying the way it currently is. I have also helped a lot of clients in the past challenge LCWRA, ESA support group decisions, and DLA and PIP outcomes. I'm very aware of the system.

Catsknowbest · 29/12/2023 19:15

Sunsetshimmer1 · 29/12/2023 18:17

Thanks for your replies so far. Yes it’s difficult for me to get work around my partners hours as he is in retail and shifts change a lot only knowing two weeks ahead . Also 8 year old is undiagnosed emotional needs etc the only job that would suit me is a school dinner lady and I did apply earlier this year with no luck , but I’ll keep looking it a very hard to find a weekday job during school hours but if I can get a job I will do it.
I really am unsure about the privacy issue I don’t believe in it as it’s our savings to spend how we wish etc . I guess we will claim for the one year and see how it goes , whether it’s worth it etc.

Yes retail can cause this problem, not knowing shifts in advance. Regarding your 8 year old, is there any way of having them assessed? I appreciate the waiting lists are huge. The privacy issue is going to become more so if the legislation that recently went through remains. As I said if you are able to come off UC eventually due to sufficient joint work income your savings and expenditure will be private.

GinnyBee · 29/12/2023 19:19

Excuse me if I’m wrong but these benefits are meant to be means based, and savings are (and rightly so in my opinion) considered as why would you need government money if you have savings? It’s not an invasion of privacy, it’s just to check that you’re not claiming for benefits you don’t need 🤷🏼‍♀️ they allow up to £6k without payments being affected and then reductions up to £16k which is an ok safety net.

TheLurpackYears · 29/12/2023 19:20

The children's savings would need to be in accounts you can't access such as ISAs.

Catsknowbest · 29/12/2023 19:22

GinnyBee · 29/12/2023 19:19

Excuse me if I’m wrong but these benefits are meant to be means based, and savings are (and rightly so in my opinion) considered as why would you need government money if you have savings? It’s not an invasion of privacy, it’s just to check that you’re not claiming for benefits you don’t need 🤷🏼‍♀️ they allow up to £6k without payments being affected and then reductions up to £16k which is an ok safety net.

Yes correct.

Catsknowbest · 29/12/2023 19:27

TheLurpackYears · 29/12/2023 19:20

The children's savings would need to be in accounts you can't access such as ISAs.

I believe in a Junior ISA or Child Trust Fund that can't be accessed until 18 years- OP would definitely need to check this.

DragonFly98 · 29/12/2023 22:51

TheLurpackYears · 29/12/2023 19:20

The children's savings would need to be in accounts you can't access such as ISAs.

That's a myth that's been trotted out since the start of JSA/IS

DragonFly98 · 29/12/2023 22:53

Catsknowbest · 29/12/2023 19:27

I believe in a Junior ISA or Child Trust Fund that can't be accessed until 18 years- OP would definitely need to check this.

Show quote history

That is incorrect, have a read of the DM guide the child has to be the beneficiary there is no requirement for it to be locked away until age 18.