LCWRA, Savings as income.

TravelMonkey1234

Hi,

I'm a little confused as to how savings over £6000 would work as a UC claimant with LCWRA.

I'm single under 25 with LCWRA, currently not working so income at all and receive no housing support.

My understanding is that because I have LCWRA and no housing support I should have a work allowance of £631 per month.

I also understand that each £250 of savings over £6000 are classed as £4.35 of income per month.

What I'm wanting to know is, will the £4.35 per £250 go towards the work allowance essentially cancelling each other out allowing me to go above the £6000 upto the £16,000 hard limit without financial penalty/deduction?

I'm not currently anywhere near the £6000 but, very likely will be by the end of this year or beginning of the next assuming my spending/outgoings remain consistant and factoring in the increase in base amount of UC once I turn 25.

poppy123456

The £4.35/month for every £250 or part there of,  will not count towards the work allowance. The WA will only apply if you receive earnings from working, as you do not work then it doesn't apply.

Your benefits payments are not classed as income until the end of the period they are paid for. This means on the last day of each assessment period, if you have savings of more than £6,000 you need to report it to UC. Any Cost of living payments you receive are disregarded from your savings.