can someone assist me — Scope | Disability forum
If we become concerned about you or anyone else while using one of our services, we will act in line with our safeguarding policy and procedures. This may involve sharing this information with relevant authorities to ensure we comply with our policies and legal obligations.

Find out how to let us know if you're concerned about another member's safety.
Please read our updated community house rules and community guidelines.

can someone assist me

brokebutsober
brokebutsober Community member Posts: 9 Listener
Gonna be out of work due to disability. Been saving near 2 decades for the savings i have. The avings go above the limit so will not be able to get UC. Iv been saving so hard for a house but looks like i have to throw it all away. I know its disregarded for a year but i need longer to be able to save up. Iv been declined mortgages as credit isnt that good. Can anyone recommmended a savings account or such that isnt classed as savings limit. I will not be taking anything out of it for years to come.
Tagged:
«1

Comments

  • poppy123456
    poppy123456 Community member Posts: 52,169 Disability Gamechanger
    Gonna be out of work due to disability. Been saving near 2 decades for the savings i have. The avings go above the limit so will not be able to get UC. Iv been saving so hard for a house but looks like i have to throw it all away. I know its disregarded for a year but i need longer to be able to save up. Iv been declined mortgages as credit isnt that good. Can anyone recommmended a savings account or such that isnt classed as savings limit. I will not be taking anything out of it for years to come.
    Savings are only disregarded for one year as part of managed migration if moving from Tax credits to Universal Credit. 

    Otherwise, if you have savings of more than £16,000 you're excluded from all means tested benefits, which includes Council Tax reduction and Universal Credit (though some LAs have a maximum savings limit of £6,000)

    There's currently no bank accounts or savings accounts where you can put any money in that will allow you to claim any benefits if you have savings of more than £16,000. This includes any money not in any bank account.

    You can pay into a pension pot or a (SIPP) but if you're not currently working the most you can put in is £2,880 a year, which will be topped up to £3,600. More information here. https://www.moneyhelper.org.uk/en/pensions-and-retirement/tax-and-pensions/the-annual-allowance

    However, with a pension pot you won't be able to access it until you're at least 55 but this is rising to 57 from 2028.

    If you have worked and paid NI contributions in the previous 2 tax years you can claim New style ESA. It's not means tested so other savings/capital and pension income of up to £85/week will not affect the amount you're entitled to. It pays £84.80/week (25 and over) increasing to £129.50/week if placed into the Support Group. You will need a fit note to claim this and SSP1 form if you were recently claiming SSP from an employer. Full details here. https://www.gov.uk/guidance/new-style-employment-and-support-allowance#how-to-apply

    If you're not currently claiming a disability benefit and you're not living in Scotland then you can look at claiming PIP, it's not means tested either so savings/capital and other income will not affect the amount you maybe entitled to. Whether there's any entitlement will totally depend on how your conditions affect you. https://www.citizensadvice.org.uk/benefits/sick-or-disabled-people-and-carers/pip/





    I would appreciate it if members wouldn't tag me please. I have all notifcations turned off and wouldn't want a member thinking i'm being rude by not replying.
    If i see a question that i know the answer to i will try my best to help.
  • Jimm_Scope
    Jimm_Scope Posts: 2,285 Scope online community team
    Hi @brokebutsober, welcome to our community :) I understand the struggle with savings, benefits and a poor credit rating. I really struggled with my finances as a young adult.

    There can be exceptions when it comes to buying a home, however they are only for a few months and you must prove you are looking for, or are already in the process of, buying a home.

    You could discuss this exception with whoever is handling your case at the DWP, but the onus of evidence is on you. You have to prove to the DWP, quite strictly, that is what the money is for. It's really not something I would rely on as the DWP are very strict with it.


    I would speak with your local citizen's advice, if you are off work due to disability then as Poppy says you may want to look at PIP or ADP if you are in Scotland.


    They/Them, however they are no wrong pronouns with me so whatever you feel most comfortable with
    Online Community Specialist

    Concerned about another member's safety or wellbeing? Flag your concerns with us. 
    Want to give us feedback? Complete our feedback form now.
    Opinions are my own, such as mashed potato being bad.
  • brokebutsober
    brokebutsober Community member Posts: 9 Listener
    Hi, and thanks for the response.

    Can i ask more in regards to the pension account. I have a nationwide account so could i open an account there and if so what would happen should i need to pull the money out in an emergency.
    Im fine with waiting however long till you reach pension age but ideally i need to put the money somewhere so i can claim uc. It somehow feels so unfair after wprking and save all this time now i have to thro it away so i can stay afloat.
  • poppy123456
    poppy123456 Community member Posts: 52,169 Disability Gamechanger
    Hi @brokebutsober, welcome to our community :) I understand the struggle with savings, benefits and a poor credit rating. I really struggled with my finances as a young adult.

    There can be exceptions when it comes to buying a home, however they are only for a few months and you must prove you are looking for, or are already in the process of, buying a home.

    You could discuss this exception with whoever is handling your case at the DWP, but the onus of evidence is on you. You have to prove to the DWP, quite strictly, that is what the money is for. It's really not something I would rely on as the DWP are very strict with it.


    I would speak with your local citizen's advice, if you are off work due to disability then as Poppy says you may want to look at PIP or ADP if you are in Scotland.


    I’m afraid that’s not correct in this case. It’s my understanding that brokebutsober is saving for their first home so the disregard doesn’t apply. 

    It only applies when you’ve sold the home you currently live in and waiting to purchase another. 

    In such a case capital can be disregarded for at least 6 months, longer if a decision makers decides it’s reasonable to do so. 

    I would appreciate it if members wouldn't tag me please. I have all notifcations turned off and wouldn't want a member thinking i'm being rude by not replying.
    If i see a question that i know the answer to i will try my best to help.
  • chiarieds
    chiarieds Community member Posts: 15,858 Disability Gamechanger
    Hi @brokebutsober - & welcome to the community from me also.
    Have you considered shared ownership? Would this be a possibility? Please see: https://www.gov.uk/shared-ownership-scheme
  • poppy123456
    poppy123456 Community member Posts: 52,169 Disability Gamechanger
    edited October 2023
    Hi, and thanks for the response.

    Can i ask more in regards to the pension account. I have a nationwide account so could i open an account there and if so what would happen should i need to pull the money out in an emergency.
    Im fine with waiting however long till you reach pension age but ideally i need to put the money somewhere so i can claim uc. It somehow feels so unfair after wprking and save all this time now i have to thro it away so i can stay afloat.
    Unfortunately a nationwide bank account or any other savings accounts, including ISAs will still mean that you’re disregarded from claiming all means tested benefits if you have more than £16,000. 

    Unfortunately you can’t just hide the money because DWP will eventually find out. 
    A SIPP (self invested personal pension) are not bank accounts. See link https://www.moneyhelper.org.uk/en/pensions-and-retirement/pensions-basics/self-invested-personal-pensions

    Do you qualify for New style ESA as per my advice above? 
    I would appreciate it if members wouldn't tag me please. I have all notifcations turned off and wouldn't want a member thinking i'm being rude by not replying.
    If i see a question that i know the answer to i will try my best to help.
  • brokebutsober
    brokebutsober Community member Posts: 9 Listener
    chiarieds said:
    Hi @brokebutsober - & welcome to the community from me also.
    Have you considered shared ownership? Would this be a possibility? Please see: https://www.gov.uk/shared-ownership-scheme

    hii, i have come across shared ownership but ideally i wanted something freehold so as to not pay rent. Will i be able to sell back a shared ownership
  • brokebutsober
    brokebutsober Community member Posts: 9 Listener
    Hi, and thanks for the response.

    Can i ask more in regards to the pension account. I have a nationwide account so could i open an account there and if so what would happen should i need to pull the money out in an emergency.
    Im fine with waiting however long till you reach pension age but ideally i need to put the money somewhere so i can claim uc. It somehow feels so unfair after wprking and save all this time now i have to thro it away so i can stay afloat.
    Unfortunately a nationwide bank account or any other savings accounts, including ISAs will still mean that you’re disregarded from claiming all means tested benefits if you have more than £16,000. 

    Unfortunately you can’t just hide the money because DWP will eventually find out. 
    A SIPP (self invested personal pension) are not bank accounts. See link https://www.moneyhelper.org.uk/en/pensions-and-retirement/pensions-basics/self-invested-personal-pensions

    Do you qualify for New style ESA as per my advice above? 

    Iv got back into work a year and half ago but you state 2 years so i assume it wont be. I feel like im being penalised for being so frugal about money. But i will have a loot at the sipps account
  • perdita
    perdita Community member Posts: 104 Courageous
    Hi @brokebutsober, due to taking my 25% tax free sum of my pension I invested it in Shared ownership. It has been the best thing for me, however there are some real advantages but equally some pitfalls which you need to carefully think through.
    In answer to your question it is very rare that Housing Associations will buyback your share. There have to be very mitigating circumstances for them to do this. However you can sell your share on the open market after the HA has tried to sell it on their sites. Very often younger individuals use any increase in equity to move on to the open market. 
    Remember that you have to pay both rent and mortgage (if applicable) and the combined total needs to be less than 45% of your income even if benefits will cover the rent and service charge. Also if you need a mortgage for your share then lenders have a different calculation for how much they will lend. Saying that I am aware of many buying a shared ownership house who are on benefits.
    Hope this helps a little as I understand and sympathise with your current situation.
  • chiarieds
    chiarieds Community member Posts: 15,858 Disability Gamechanger
    perdita has helpfully answered your question, & mentioned some of the pros & cons. Selling a shared ownership home is also mentioned on both the links above.
  • poppy123456
    poppy123456 Community member Posts: 52,169 Disability Gamechanger
    Coming back to this after some thought about the SIPP, which i didn’t think of when I advised above. 

    Whilst putting money into a pension is allowed when claiming UC, if you put your money into a pension and then claim UC it could be classed as deprivation of capital in order to claim a means tested benefit. For this reason you could be treated as still have the savings and your UC will be refused. 

    Apologies for incorrect information! I’m currently looking through the UC regulations to see if i can find some confirmation of this. @chiarieds any help to try to find that is greatly appreciated please! I know you're much better than me at looking through all those regulations! Thanks in advance!
    I would appreciate it if members wouldn't tag me please. I have all notifcations turned off and wouldn't want a member thinking i'm being rude by not replying.
    If i see a question that i know the answer to i will try my best to help.
  • poppy123456
    poppy123456 Community member Posts: 52,169 Disability Gamechanger
    Hi, and thanks for the response.

    Can i ask more in regards to the pension account. I have a nationwide account so could i open an account there and if so what would happen should i need to pull the money out in an emergency.
    Im fine with waiting however long till you reach pension age but ideally i need to put the money somewhere so i can claim uc. It somehow feels so unfair after wprking and save all this time now i have to thro it away so i can stay afloat.
    Unfortunately a nationwide bank account or any other savings accounts, including ISAs will still mean that you’re disregarded from claiming all means tested benefits if you have more than £16,000. 

    Unfortunately you can’t just hide the money because DWP will eventually find out. 
    A SIPP (self invested personal pension) are not bank accounts. See link https://www.moneyhelper.org.uk/en/pensions-and-retirement/pensions-basics/self-invested-personal-pensions

    Do you qualify for New style ESA as per my advice above? 

    Iv got back into work a year and half ago but you state 2 years so i assume it wont be. I feel like im being penalised for being so frugal about money. But i will have a loot at the sipps account

    You may qualify even though you've only worked for the past 1.5 years. It will depend on earnings and NI contributions. You can check your NI records here. https://www.gov.uk/check-national-insurance-record

    I would appreciate it if members wouldn't tag me please. I have all notifcations turned off and wouldn't want a member thinking i'm being rude by not replying.
    If i see a question that i know the answer to i will try my best to help.
  • brokebutsober
    brokebutsober Community member Posts: 9 Listener
    perdita said:
    Hi @brokebutsober, due to taking my 25% tax free sum of my pension I invested it in Shared ownership. It has been the best thing for me, however there are some real advantages but equally some pitfalls which you need to carefully think through.
    In answer to your question it is very rare that Housing Associations will buyback your share. There have to be very mitigating circumstances for them to do this. However you can sell your share on the open market after the HA has tried to sell it on their sites. Very often younger individuals use any increase in equity to move on to the open market. 
    Remember that you have to pay both rent and mortgage (if applicable) and the combined total needs to be less than 45% of your income even if benefits will cover the rent and service charge. Also if you need a mortgage for your share then lenders have a different calculation for how much they will lend. Saying that I am aware of many buying a shared ownership house who are on benefits.
    Hope this helps a little as I understand and sympathise with your current situation.

    Hi, that sounds very good. So if i can buy a share in home ownership how does it work like i own 25% but will the lease expire. If so is all my money gone ? any other links you can give with this shared ownership will be greatfuly recieved.
  • brokebutsober
    brokebutsober Community member Posts: 9 Listener
    Hi, and thanks for the response.

    Can i ask more in regards to the pension account. I have a nationwide account so could i open an account there and if so what would happen should i need to pull the money out in an emergency.
    Im fine with waiting however long till you reach pension age but ideally i need to put the money somewhere so i can claim uc. It somehow feels so unfair after wprking and save all this time now i have to thro it away so i can stay afloat.
    Unfortunately a nationwide bank account or any other savings accounts, including ISAs will still mean that you’re disregarded from claiming all means tested benefits if you have more than £16,000. 

    Unfortunately you can’t just hide the money because DWP will eventually find out. 
    A SIPP (self invested personal pension) are not bank accounts. See link https://www.moneyhelper.org.uk/en/pensions-and-retirement/pensions-basics/self-invested-personal-pensions

    Do you qualify for New style ESA as per my advice above? 

    Iv got back into work a year and half ago but you state 2 years so i assume it wont be. I feel like im being penalised for being so frugal about money. But i will have a loot at the sipps account

    You may qualify even though you've only worked for the past 1.5 years. It will depend on earnings and NI contributions. You can check your NI records here. https://www.gov.uk/check-national-insurance-record


    Il have a look, if it allows me that would be good
  • brokebutsober
    brokebutsober Community member Posts: 9 Listener
    Coming back to this after some thought about the SIPP, which i didn’t think of when I advised above. 

    Whilst putting money into a pension is allowed when claiming UC, if you put your money into a pension and then claim UC it could be classed as deprivation of capital in order to claim a means tested benefit. For this reason you could be treated as still have the savings and your UC will be refused. 

    Apologies for incorrect information! I’m currently looking through the UC regulations to see if i can find some confirmation of this. @chiarieds any help to try to find that is greatly appreciated please! I know you're much better than me at looking through all those regulations! Thanks in advance!

    I see, so if i open a sipp, it would be classed as trying to get rid of funds to claim UC. That hurts, iv spent so many years saving it. Better not to seek UC and carry on working even though i cant. Would be funny paying back into the system that didnt help.
  • poppy123456
    poppy123456 Community member Posts: 52,169 Disability Gamechanger
    Coming back to this after some thought about the SIPP, which i didn’t think of when I advised above. 

    Whilst putting money into a pension is allowed when claiming UC, if you put your money into a pension and then claim UC it could be classed as deprivation of capital in order to claim a means tested benefit. For this reason you could be treated as still have the savings and your UC will be refused. 

    Apologies for incorrect information! I’m currently looking through the UC regulations to see if i can find some confirmation of this. @chiarieds any help to try to find that is greatly appreciated please! I know you're much better than me at looking through all those regulations! Thanks in advance!

    I see, so if i open a sipp, it would be classed as trying to get rid of funds to claim UC. That hurts, iv spent so many years saving it. Better not to seek UC and carry on working even though i cant. Would be funny paying back into the system that didnt help.

    Unfortunately, it's highly likely going to be this way and seen as deprivation of capital. Once your savings go below £16,000 then you can claim UC but there will be a deduction of £4.35/month for every £250 or part thereof over £6,000.

    I know the rules are tough but unfortunately, it's the law. Savings of more than £16,000 there's no entitlement to any means tested benefits.

    Please do look at New style ESA. If you're currently still working and are unable to carry on for now, have you looked at claiming SSP from your employer?

    Benefits really are the bare minimum (to start with at least) so do bear that in mind too.
    I would appreciate it if members wouldn't tag me please. I have all notifcations turned off and wouldn't want a member thinking i'm being rude by not replying.
    If i see a question that i know the answer to i will try my best to help.
  • perdita
    perdita Community member Posts: 104 Courageous
    Hi, if you buy a share in a new build which there are plenty of then your lease should be fine (mine is 250 years) but you have to be careful on resales as anything under 80 years you would struggle with and extending leases under 90 years are very expensive. I believe that there may be some new legislation in the offing regarding leases but this could be many years away and only affect new builds. There is also a scheme called Heylo homes which do both letting and a form of less traditional shared ownership. In this scheme if you pass their affordability checks then you can choose a house on the open market which is very appealing as you can choose in your area of choice. However they are not one of the housing associations which are 'not for profit' meaning that their rent is a little more expensive than traditional Housing Associations and are not governed by any Government regulations. So this year when the Government capped rent increases to a maximum of 7% they didn't have to abide by this. Don't know what they did as I am not with them. But just a thought to check any Housing Association you are interested in...check whether they are registered as not for profit.

  • perdita
    perdita Community member Posts: 104 Courageous
    One other benefit of shared ownership @brokebutsober is that you are exempt from bedroom tax even though you rent from a housing association 
  • chiarieds
    chiarieds Community member Posts: 15,858 Disability Gamechanger
    As far as I can see, then SIPP is indeed a form of personal pension, which would be seen as capital (ADM Chapter H1: capital; para H1020.3):  https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1163111/admh1.pdf    I can't find anything contrary to this.

  • poppy123456
    poppy123456 Community member Posts: 52,169 Disability Gamechanger
    chiarieds said:
    As far as I can see, then SIPP is indeed a form of personal pension, which would be seen as capital (ADM Chapter H1: capital; para H1020.3):  https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1163111/admh1.pdf    I can't find anything contrary to this.


    Thanks. Yes, capital but because a pension can't be accessed it's likely to be seen as deprivation of capital and they will still be classed as having it.
    I would appreciate it if members wouldn't tag me please. I have all notifcations turned off and wouldn't want a member thinking i'm being rude by not replying.
    If i see a question that i know the answer to i will try my best to help.

Brightness

Complete our feedback form and tell us how we can make the community better.