Hi, my name is mary989! Are CoL payments disregarded for capital?

mary989

Cost of living payment 
Hi there . My query is about cost of living payments.I’m on universal credit.  I have read that these payments are disregarded when working out capital. My capital is over £6000 but was under 6000 when I got these. Universal credit do not agree with me 

Albus_Scope

Hi @mary989 and welcome to the community.

You are correct and CoL payments are not taxable and should not affect any benefits or tax credits you receive, as it counts as a 'capital disregard' 

Taken from the parliament website;
 "The government is making Cost of Living Payments to

claimants on certain benefits including Universal

Credit.

The Cost of Living Payment is disregarded for

Universal Credit capital purposes indefinitely "

mary989

Hi @Albus_Score yes I had done some research and agreed with what you say . I’ve had this conversation with them on the phone. The guy I was speaking to asked his manager and they said no . They said they were going on guidance . My capital was about £4000 and I’ve just declared some money that has put me over £6000. 

They said that they could only disregard it if I was at present under £6000 .
 I’m not sure how to handle this ? 

Kimi87

UC on the phone are basically call centre staff and have been known to give out wrong advice.

I'd put a note on journal instead personally.
Saying that without CoL payments your capital is now over 6000, but under when deductions for CoL are made. 

mary989

@Kimmy87 thank you 

mary989

@Kimmy87 it’s difficult to know what category to choose to put a net on my journal . It’s all changed now, last time I used the journal I was able to just put a note on it 

Hannah_Alumni

@mary989 Have you asked on your journal which category you should choose?