(UC) Reporting savings over £6,000

needhelp120

Hello, I've been preparing to report a change in savings as in my upcoming assessment period the disregard of my large pip back payment is ending and therefore my total savings will finally be above £6K even with the cost of living payments disregarded. I am very anxious and have a few questions as I am afraid I have done something wrong. 

1) Do you disregard the £150 COL payment?

2) If my PIP is paid a day or two before the last day of my assessment period (the day you upload savings numbers) do I still have to report this as capital (with my total savings), as I haven't even had time to spend it? 

3) When I went to the report a change section it says 'At the start of your claim, your total money, savings and investments was £0.00.' I'm unsure why it says this because as the start of my claim I think I had around 4k in my bank account. When I first applied for UC I was in a very bad mental place due to illnesses that affect my cognitive and mental abilities and I am worried that I accidentally have reported this wrong. I'm so confused why it says this. Should I mention this as a note on my journal when I upload my savings as I'm worried they are going to be confused as how I suddenly have so much savings. I'm not sure what I should say, I didn't realise that I had made that mistake as I could barely think straight during that time. Should I be the one to say I noticed it first, even if the amount didn't affect my claim? When I first applied for UC I did not have an appointee, but I do have one now. 

4) I take £400 a month out of my bank account to budget for groceries and have always done this during the time of my claim. I have conditions that affect budgeting and planning, impulse control, reckless behaviour and spending as well as problems relating around food and disordered eating and have found it helps me mentally to budget in cash for food related purchases. I have discussed this many times with my therapist I see weekly. I have read that the dwp can be funny about cash withdrawals so now I am super worried as I never get receipts or I'd have hundreds of bits of paper. 

This whole reporting savings is becoming very stressful and I'm not sure what is going to happen, if anyone can answer any of the above questions I would be very grateful. I am on LCWRA and PIP. 

poppy123456

1/ All of the CoL payments are disaregarded indefinitely.

2/ No, it doesn't affect your UC until the following assessment period, not the one immediately after.

3/ It doesn't really matter anyway because savings of less than £6,000 are ignored.

4/ You won't need reciepts when you report your savings. You just report the amount you have, minus the disregards and your benefits money for that period.

You're not alone in feeling this way about savings because it affects many people. Even more so for those that tend not to spend as much as others, for one reason or another so their savings increase quite quickly. We have quite a few members that have mentioned this many times.

needhelp120

@poppy123456

Thank you so much for your help and knowledge. I am still confused about my pip payments so I was wondering if you could help me by taking a look at the following theoretical scenario to help me understand. 

So for example, the amount I will get is based on my circumstances from 16 December to 15 January 2024. So I will report my savings that I have on the 15th of January (the last day of the assessment period). On the 19th of December I got paid £700 PIP. My total bank account is now £4,700 on the 15th. On the 15th of January would I report £4,700 or £4,000?. (Pretending that COL doesn't exist just to simplify things and that I did not spend my PIP)  

If I do spend the PIP do I just deduct the money that is left or do I deduct my whole pip payment every month that falls in that assessment period despite how much of it I have spent by the time the last assessment day comes.


Am I also correct in thinking that any universal credit paid in that period becomes capital on that last day of the period. So if I am paid £1000 on the 22nd of December and I have £500 left of it on the 15th on Jan, that then becomes capital/savings? Or do I deduct the total universal credit payment if it occurs during the period?

Thanks so much for your help this is really all so confusing!

poppy123456

In your first comment you said that your PIP disregarded money is ending soon so you will be over £6,000. I'm guessing this example with the figures is just an example? because savings of less than £6,000 are ignored.

needhelp120 said:

So for example, the amount I will get is based on my circumstances from 16 December to 15 January 2024. So I will report my savings that I have on the 15th of January (the last day of the assessment period). On the 19th of December I got paid £700 PIP. My total bank account is now £4,700 on the 15th. On the 15th of January would I report £4,700 or £4,000?. (Pretending that COL doesn't exist just to simplify things and that I did not spend my PIP) 

Income becomes capital if it's unspent by the end of the assessment period after it was received. In that example above it will be the 15th Feb that counts for the PIP payment on 19th December. Therefore that PIP payment is ignored for assessment period 16th Dec to 15th Jan.

needhelp120 said:

Am I also correct in thinking that any universal credit paid in that period becomes capital on that last day of the period. So if I am paid £1000 on the 22nd of December and I have £500 left of it on the 15th on Jan, that then becomes capital/savings? Or do I deduct the total universal credit payment if it occurs during the period?

No, that's not correct. As i explained above, it's the end of the assessment period after the money was received.

See link and scroll to H1050 https://assets.publishing.service.gov.uk/media/648b10585f7bb700127faae7/admh1.pdf