UC savings

[stridesy]

hi I was wondering if I have savings over the threshold could I just place it against the mortgage? My oh has about 30k in debt anyway although I gather this would be ignored anyway.

Probably be seen as deprivation of assets. How much are your savings?

Pay your debts

If they're not married they are not the ops debts.

If your mortgage isn't in arrears and you are up to date, paying extra money off it will be seen as deprivation of assets for claiming UC.

Are you suggesting that you want me (the taxpayer) to support you when you have savings that you could use to support yourself? FFS, absolutely no shame.

I think a lot of people on tax credits are suddenly realising UC isn't the same and are going to be in for a surprise.

www.legislation.gov.uk/uksi/2013/376/regulation/50
Notional capital
50.—(1) A person is to be treated as possessing capital of which the person has deprived themselves for the purpose of securing entitlement to universal credit or to an increased amount of universal credit.

(2) A person is not to be treated as depriving themselves of capital if the person disposes of it for the purposes of—

(a)reducing or paying a debt owed by the person; or
(b)purchasing goods or services if the expenditure was reasonable in the circumstances of the person's case.

A mortgage is a debt owed by a person, is it not?

Yes that's what's happening.

It is a debt. But paying more off it increases capital owned, ie the house. They will question it.

So you have more than 6k in savings but want to lose it so you can claim UC?

If you have 6k on savings use them 1st, instead of being entitled!

Everything I have read says that it is a legitimate choice.

Are we talking the £6k threshold which means some of your UC is deducted or the£16k which stops the claim?

It'll be decided during claim. To many it will seem unfair that an asset that can be realised for capital at any time can be increased in value to claim MN benefits.

You can have to to £16k and claim. Between 6 and 16 a tariff deduction will be made but doesn't stop someone claiming.

*MT

Sounds like OP has more than £16k.

It may seem unfair but it's written into legislation. It's different for the legacy benefits (JSA, ESA, etc.), for which it would be seen as DoC.

At the moment I’m just weighing up options having just had the paperwork come through just before Xmas as next year I need to somehow fund £250 per term for my autistic son to go to school. I was thinking about getting a job soon but difficult when I have to continually pick him up from his sen school or go in to speak to the police as he’s thrown a jar of marmite at his teachers head. Won’t be able to find childcare for a 14 year old at home so that possibly leaves nights.
Not that I’ve mentioned how much it was but my parents gave me some money.
It wasn’t that long ago I was driving a car that was leaking carbon monoxide poisoning and we almost lost our home as my oh had been made redundant twice in a year.

You can have up to £6000 capital without deduction. Every £250 above that is deducted at £4.35 per month, up to £16000, at which point you're not entitled to UC. So £174 per month would be deducted for capital of £16000.

The CAB would be able to advise you as to whether putting anything more into your mortgage would be seen as DoC, but you also need to consider that it will mean it is money that you don't have access to for daily living.

Does your DC get DLA? Do you work? If not, do you get carer's allowance?

If your partner has debt and you are living as a couple, it definitely isn't DoC to pay off that debt.

Yes respect what you're saying

Yes, this.

It's not a legitimate choice if it gives you more equity, which it will. Paying your standard mortgage would be allowable. People who have been claiming fraudulently are going to be found out once banks report back to UC. Report it yourself before they send you the letter.

If it's a joint claim maybe but if claiming as a single person it definitely would because a single person claiming is not supposed to be living with someone else.

Well yes a lot of people currently on tax credits seem to have savings over 16k. Even came across one the other day who had second home and claiming tax credits. Thank goodness the system is changing. Some of these tax credit claimants seem to have way more in assets and savings than people not on benefits.