Pip + savings

letitbe

Hi everyone I have been awarded high pip and got a lot of back pay , I already had a bit of savings ( under 6k ) I know back pay pip is ignored for 12 months so I transferred all that to other account so I won’t get confused . The thing is this money is really stressing me out because I don’t spend much except taxis maybe 3 or 4 times a week and few other things  . But all this money will be adding up every month in my account ( I get LCWRA as well ) and in few month I will probably be over 6k I know I have to report to UC but I’ll have to keep telling them every month because it will just keep building up. I’m really stressed about it and don’t know what to spend on, because I don’t want to spend on things for the sake of it in case they say I’m being extravagant and living luxury life. 

It’s really stressing me out . 

Rosie_Scope

Sorry you're feeling stressed about this @letitbe, I can understand how it might feel like you're being judged for being extravagant with your money.

Are there any practical things that you feel might need an upgrade in your life? For example, technology, devices or any things that help you out day to day in a more practical way. Would buying a couple of things that are useful to you help you feel a little less anxious about spending the money?

woodbine

The best bet as Rosie says would be to spend some of the money, no one will question how you spend it

poppy123456

Do also remember that it's not treated as capital until the end of the next assessment period in which it's paid for.

For example, if your UC assessment periods are 15th to 14th of every month with payment date being 21st of every month. The money from that assessment period will not count as capital unless you have any left on the last day of your following assessment period.

To put it little more simple, assessment period 15th March to 14th April with payment date being 21st April 2024. If you have any of that money left on 14th May, then that becomes capital. Same applies for any money left from your PIP payments. 

Don't forget also that all of the cost of living payments are disregarded indefinitely so if you received all of those then you don't add any of that onto your savings. 

I also agree with Rosie, is there anything new that you need, maybe a nice new bed, or a new sofa? Something personal for yourself, maybe some clothes, a laptop? Do you live with parents or have your own place? Maybe pay a little extra onto your energy accounts, whether you pay DD monthly or have prepayment metres. It's entirely up to you what you spend your money on. 

letitbe

Thanks everyone . 

letitbe

poppy123456 said:

Do also remember that it's not treated as capital until the end of the next assessment period in which it's paid for.

For example, if your UC assessment periods are 15th to 14th of every month with payment date being 21st of every month. The money from that assessment period will not count as capital unless you have any left on the last day of your following assessment period.

To put it little more simple, assessment period 15th March to 14th April with payment date being 21st April 2024. If you have any of that money left on 14th May, then that becomes capital. Same applies for any money left from your PIP payments. 

Don't forget also that all of the cost of living payments are disregarded indefinitely so if you received all of those then you don't add any of that onto your savings. 

I also agree with Rosie, is there anything new that you need, maybe a nice new bed, or a new sofa? Something personal for yourself, maybe some clothes, a laptop? Do you live with parents or have your own place? Maybe pay a little extra onto your energy accounts, whether you pay DD monthly or have prepayment metres. It's entirely up to you what you spend your money on. 

I’m waiting for my own place Poppy , probably private so I’m sure I’ll have to pay lots of bills . ATM all my bills are included in rent and rent is very cheap so I don’t contribute anything as UC covers it all. I get really stressed about money , I was ok before but pip has really confused me. I have paid for some private therapy and bought loads of things online but I’m still stressed about the money I have.