What happens if you save 16k whilst on UC?

[Rachel1093]

Last year I moved back in with my parents with my 2 young children, they have been very kind to let me stay rent free so my bills/out goings are minimal and I've managed to stick to a fairly small budget, I'm self employed and get a top up from Universal credit. I've saved just over 10k currently, I do update this in my claim each month it rises and obviously once it reaches 16k I know the claim will stop. My plan is to continue saving what i can after that until I have decent chunk to buy a property for us and decorate/repair anything that needs doing, I've had a look and think I can find something small for 50/60k... Although my income will probably increase over time, I want to aim small so there's never any financial pressure and not being left with pennies every month. My question is once I've bought somewhere will I be able to claim universal credit again or will the fact I spent my savings mean I'm no longer eligible? Just want to have an idea of what my income will potentially look like once we've moved out. TIA x

They will check what the money was spent on if you reclaim but I wouldn't think buying a home would be seen as deliberately depriving yourself of capital in order to claim. Keep receipts etc.

I might be wrong but I think money that's kept aside for buying a property isn't included in the savings allowance. Perhaps add a note to your journal.

As long as your income is low enough when you've bought a house, you should still be entitled, you just won't get the housing element but you get a higher work allowance.

So other taxpayers are paying for you to save to buy a house when many cannot afford to buy themselves. FFS. Are you sure you are not a Tory bot trying to wind people up??

I don't think that is true otherwise everyone will do it. They disregard money from a house sale for about six months I believe though.

If she's living with her mum she's probably not entitled to much UC, she's likely saving mostly her earnings.

Don't blame people claiming, blame the system for allowing it.

Instead of pissing down on someone trying to get their business going and save for a house, who probably gets a pittance of UC whilst they live with their mum, why didn't you piss upwards and focus on the BILLIONS that go to MPs second homes, gas bills, expenses and to the friends of the people in power?

It's no good chucking rocks at people trying to swim when you could be chucking those rocks are the fuckers trying to drown us all.

I find all people taking taxpayers for a ride offensive.

If OP moved out of her parent's house into private rental, a landlord would be hoovering up a nice chunk of the tax payer's money. Is that preferable?

The benefits bashing on MN is ludicrous.

Well unless they're committing fraud which I doubt they are their claim won't be that big. If they lived elsewhere they'd no doubt get the housing element which would just go to a landlord rather than into a pot which will help lift them onto the property ladder and over the long term I'm sure take less out of the system. So much saltiness when let's be real people eligible for benefits often work, and their take home won't be that wild.

Prove OP is taking the tax payer for a ride.

Bearing in mind that she applied, had her claim assessed and was awarded whatever amount she was awarded in line with the assessors findings.

Unless you have proof that OP is committing fraud?

absolutely

Can you 'pay' your parents rent (as a lodger so they wouldn't have to pay tax on it) and then they can give you that money back in the form of a gifted deposit when you do buy a home?
Is that allowed?

I know people who did this years ago when they were young and returned from Uni etc. They didn't do it when in benefits, rather the parents encouraging them to save, but I'm sure the same principle can be applied?

The savings disregard for housing applies to the capital for 6 months, I think, if you have sold your house and are rebuying eg after relationship breakdown. It does not apply to general savings.

I believe that capital held within a business that is trading is disregarded by UC.
(You would need to check this).

Could you keep the assets within your business umbrella until it is actually required for the house purchase?

Great analogy. 👏

I thought once you reached £6k in savings there's a sliding scale up to £16k then you can't claim UC anymore.

It’s actually more cost effective for the tax payer if the op buys a home rather than providing rent support for the rest of their life.

What is it that you would actually like the OP to do? Refuse the benefits that she’s fully entitled to? Stop saving and just spend every penny coming in and not try to make a better life for her kids? Why should she be punished for being financially prudent and saving?

Not true. She will be getting an even higher work allowance when living rent free. this higher work allowance gives some extra help to people with mortgages but if you don't even have a mortgage to pay you still benefit form the higher work allowance !

@Propertylover 100%. I did a study as part of my MA that concluded that in terms of "value for money" for "the taxpayer" keeping people dependent on long term benefits vi low pay, limited opportunities, high rents etc is the least desirable option. It is more short term cost but supporting people to get an education, buy a property (a flat or small house is fine, not a mansion), learn to drive etc yields results in terms of reducing future claims but also breaking the cycle by allowing the children of those families to not grow up with deprivation.

Very unlikely to be a pittance if she has kids on the claim.

For your first child -
£315.00 (born before 6 April 2017)
£269.58 (born on or after 6 April 2017)

For your second child and any other eligible children -

£269.58 per child

Max for 2 kids - £584.58

UC for those without housing costs has a work allowance of £631

If OP is earning equivalent of 40 hours Minimum Wage from self employment that's - £1806

£1806 - £631 = £1175
For ever £1 earned, 55p is taken from UC claiming.
1175 x .55 = £646 taken from claim.

Child element of UC for 2 kids £631 Minus UC Deductions £646 = -£15

But I mean my maths aren't great.
But I think -£15 counts as a pittance. 🤔

(It's actually less because I used the wrong figures. UC for 2 kids is £584 so it should be £584 minus £646 which equals: -£64... )

But I'm not confident that's accurate tbh.
I'm sure someone is better at these things than me.

@Rachel1093 once you've bought a house and no longer have savings because you've used them for a deposit you can definitely put in a new claim for UC, I did it myself last year. I don't know if they checked anything- I just declared my new amount of savings on the new claim and it was sorted.

You've calculated wrongly. You haven't even got a standard element for the parent in your calculation.

I didn't used to understand why all the poor people I knew had lots of gold jewellery.

HTH.