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

Hence why I typed:

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

From my understanding UC will stop when you've saved £16k but once you've used it to buy a property you can re open the claim.

I'd ask on a benefit group on fb, they are extremely helpful and quite knowledgeable (you can also ask anonymously on there).

You said hardly a pittance without even calculating properly !

Nope.

I said:

who probably gets a pittance of UC

See the word "Probably", I used that because I didn't know.

Hope that clears it up for you. If not, tough, I CBA to respond to you again.

Or stay on housing benefit paid for by taxpayers forever?

I pay tax too and am hoping that in the not so distant future I won't need a top up. I have gone from being in a stable two income 2 parent household to suddenly losing my partner and having to keep in together whilst working as much as possible to keep a roof over our heads, whilst I understand i'm very lucky to have been able to move in with family and therefore save most of my current earning,s I'm not going to feel guilty for getting help i'm entitled to.

Please don't feel guilty and in fact this is an ideal escape out of the "benefits trap" that gets so many people! I'm sorry for all you've been through.

I'm curious though where can you buy somewhere for 60k

That’s actually a buisiness and it’s called paying rent to the landlord for living in said house !

Also for those interested, I am a sole trader and my income goes up and down each month,, I'm hoping that as my business grows, I'll no longer be entitled to any help. Currently some months my reward is 0, the highest it's been in the last year is just over £300. They do deduct £4 something for every £250 you save after 6K and then you're no longer entitled after 16K. I have updated my journal regularly and been fully transparent about my plans, I'm am definitely not committing fraud.

Thank you, I'm in the north, there are quite a few 2 bed flats in my area for this price range. I could probably save for longer and aim for a bigger mortgage but my priorities have dramatically changed, even if I had much more money I'd probably still aim for the cheapest available property and just focus on making it our own.

Sounds a really good plan. Especially as 16k would be a good deposit and a flat would get you settled and established again. Well done with business.

I'm very down south and flats start around 200k and I'm not near london! The differences are huge aren't they. I'm worried my kids won't ever be able to find somewhere. Bur that's a different issue.

Wow, yes that's a huge difference, you could easily get a 4 bed house for that in my area.

I'd suggest relocating but that's easier said than done when you already have a life established, family friends near you ect.

I'm a taxpayer too so suppose I'm taking myself for a ride.

Shes just claiming what shes entitled to. The system is flawed. I have a full time and part time job. Can't afford to save 16k

This is a really good suggestion.
Check out if the rent a room rules would apply to your parents.

I would try website moneysavingexpert or citizens advise for this query

I'm only in this position because I've moved in with my parents and no longer have many bills or any rent to pay. I used to have a partner and our joint income was more than twice what I currently earn but we were never in a position to be able to save much as we had the usual bills, rent, childcare and car costs. I also no longer have a car or need child care any more since they're both in school now so my out goings are incredibly less. The most I get from universal credit is £300 a month, some months it's nothing so my savings are mostly from my own earnings.