LCWRA AND UC

cazteks

Hi I’m hoping someone can help me? 

I’m on universal credits LCWRA

I desperately need to replace my settee, sons bed , flooring etc. . I have a private pension that I can withdraw money from to cover this Work as I have no savings but are concerned that the DWP may interpret this as withdrawing money and using it on none essentials so will therefore take money from my universal leaving me out of pocket. Has anyone else been in this situation?

All receipts etc will be shown

poppy123456

Lump sum draw downs are classed as capital for UC purposes. Savings of less than £6,000 are ignored so it won't affect your UC and you do not need to report it.

For every £250 or part there of over £6,000 there's a £4.35/month deduction. Savings of more than £16,000 and entitlement to all means tested benefits will end.

Please be aware that if you're claiming council tax reduction, some local Authorities have a maximum savings limit of £6,000 before entitlement to council tax reduction ends.

cazteks

Ok thank-you . I was told it could be done but you would have to prove it was essential purchases rather than filtering the money away . It’s so confusing ? 

Thankfully my council allow up to £16000 before they stop council tax reduction . Lol I haven’t even got £1000
” You can apply for a council tax reduction whether you are unemployed or working however, if you have savings of £16000 or more you will not normally be entitled to a reduction”

poppy123456

cazteks said:

Ok thank-you . I was told it could be done but you would have to prove it was essential purchases rather than filtering the money away .

That's not correct if the amount is less than £6,000.