Universal credit and spending on luxuries

[Paulajane40]

Savings between 6-16k so have deductions , is it ok to use around 2k - 2.5k of savings to buy luxury items for big birthdays and big events eg eldest finishing GCSE.
Eg Tiffany , Gucci . All bills are paid and no other major outgoings for those months . I worry as some say your not allowed to spend on big purchases etc
doing so will still keep me above 12k so will have deductions still which I’m fine with

Tiffany or Gucci for finishing GCSEs, how odd, don't most go to Leeds or Reading.

If a £2k handbag costs half of someone's life savings, chances are they do really need financial help (and arguably financial education, but the state has no interest in providing that).

Wouldn't driving lessons be more useful than a handbag?

Hmm. So taxpayers pay for Tiffany or Gucci! Is that really fair on taxpayers? If you want more you know what to do!

I would be keeping my savings for a rainy day, rather than buying needlessly expensive, over the top presents for people, especially a teenager! It isn't teaching them financial responsibility. But it's your money.

Not heard that quote in years

Wouldn’t the money be better spent on Greggs, fags and tattoos?

This never fails to make me laugh. You realise that people who claim benefits are tax payers, right? I work full time for local government. I pay income tax, national insurance, VAT, duties tax on petrol and alcohol (and tobacco if I smoked) l, I pay council tax - I also qualify for universal credit.

Are you going to tell me how to spend the money in my bank account?

Only if the savings are over £6000

Gucci? Tiffany?
Are you trying to advertise you are on universal credit.
I would perhaps do a university course to try and get off UC.

Are you thinking of the deprivation of capital rules?

The rule is there to prevent people from deliberately spending money, on things they wouldn't otherwise have bought, in order to become/remain entitled to benefits.

If its big generous presents for important birthdays. Or for an event like passing GCSE's...that's a pretty normal spending pattern.

You might be asked to explain it. But I think you'll probably be fine.

Me neither! But it doesn't really reflect present day values, in which conspicuous consumption is normalized and admired. You couldn't really have the Harry Enfield Loadsamoney character as a satire of a certain kind of crass nouveau riche person either, because today everybody has either turned into him or wants to.

The OP needs to think about the wisdom of making ruinous decisions in order to cosplay as someone "considerably richer than you". I know I sound obnoxious, but I've been.there myself (albeit with fake Vuitton from ebay etc) and life has been so much better since I focused on bootstrapping my way out of poverty rather than spending all my money on crap to impress randomers I didn't even ljke. Of course, this was easier before UC and Brexit, but it's even more urgent now. Anyone struggling should check out the Rebel Business School/ Rebel Finance School and read early Mr Money Mustache posts.

Finishing GCSEs, not passing them.

It's your choice how to spend OP. There is a chance you may have to justify the spending.

You are obviously good at budgeting and living frugally to have a low income and have built up good savings, well done.

What a load of tosh.

Redirecting anger at nameless faceless "greedy employers" as a way of justifying UC and expenditure thereof, who's fooling who here.

@Paulajane40 what is the point of this thread? Other than being a GF.

the reality is you don't really need UC, you've said you're fine. You're not struggling if you're merrily spending money on Gucci and Tiffany to burn through a few quid, no matter how you try to justify it.

Why should OP do that, she hasn’t bought any luxury items yet, the others already have a handbag at least let her splash the cash first

Why would you get rewarded for finishing. You might have failed.

@daisychain01 greedy employers who pay their employees peanuts and expect the government to make up the shortfall aren't nameless or faceless. You can look them and their profits up on Company's House. It's a real problem. An unintended consequence of the minimum wage and in work benefits.

Yes I’ve not spent on luxury’s and been careful with money over the years .

My dd won't be having driving lessons due to health conditions so can’t do that.

Dd is more than likely to pass gcse without issues .

I am fairly new to uc so was not sure on the rules even though the money would be coming out of my savings account ( which I declared ) but not my everyday account for bills etc

It will be classed as deprivation of assets, or at least it should be.

I don’t want this to come across the wrong way. Get her a bar of chocolate/pamper kit. There is no need to blow on Gucci etc and why would you? You’re paying for the brand

I'm sorry to hear driving lessons aren't an option. That's tough. I'd definitely have a think about what you can do with the cash that won't be deprivation of assets or a waste of money (which I think designer bags are, though of course ir's not my business).

What could you spend £2k on for your DC that would help them in future, reducing the chance that they in turn would end up on UC? I'm not saying that to be judgy as I was once on Income Support then WTC, but UC is a nasty punitive system and a poverty trap (as you well know, having researched the capital limits). Maybe you should start a new thread and ask MN as there's often good advice in here, and threads about benefits claimants having luxuries tend to attract goady posters.

@spicemaiden Their taxes barely cover the UC though. They don’t pay higher rate and are subsidised by other taxpayers who pay the vast majority of taxes. UC claimants do not pay much at all. So don’t make me laugh! Others are subsidizing you. Try getting promotion.

I’m perfect try comfortable where I am very secure working hard saving the taxpayers money supporting some of the most vulnerable in society try to find a way forward.

Your sneering at those working gif local government supporting services and citizens is entirely your problem.

Don’t look for answers here. You will be shot down every time bevause you’ve hard the temerity to claim benefits you’re entitled to.
Being a benefits claimant and admitting it on MN is akin to being in an abusive relationship: you’re better off opting out of the toxicity.

I earn several thousand above minimum wage - still qualify and am not at the bottom of the council pay grades.

Enjoy the rage.

@spicemaiden So what is stopping you earning more? Getting a better job? I started at the bottom in local government but had no intention of staying there. I channeled my ambition and was successful - but I had ambition.