UC Review - Savings gone over £6250

Becs

Hi, I hope someone can help as I'm in a bit of a state! I'm self employed and send my income and expenses details through every month. I received a notice on my UC journal that they were doing a review and I needed to send ID and 4 months bank statements. I've sent my current and savings account details but in double checking everything I've realised I've got £2000 in a paypal account that has just been building up (from sales). This has been taking me over the £6250 threshold for about a year. All sales and expenses have been reported correctly but I haven't declared the increase in savings. (I've received all the cost of living payments so I presume they get taken off the total savings?) Also my mum gave me a birthday gift of £3000 last year that was to help towards a tooth implant I needed (it was the only viable option and couldn't be done on the NHS so had to go private), it's been sat in my account as I've only recently started the treatment and paid half the cost so far - how will this be perceived? Please don't judge me I've had a lot going on with my own mental health issues and dealing with an elderly mother with schizophrenia and other serious health problems. Should I pre-empt the review and ring them to tell them all this or would it be better to wait for them to contact me further? I'm so worried I'm not sleeping or eating and my anxiety levels are at their absolute limit. What will be the likely outcome? I do realise that I will have to pay back the overpayment somehow.

I would really appreciate any advise. Thanks in advance

poppy123456

All of the cost of living payments are disregarded so you will need to take those off your total savings. If this takes your total savings to less then £6,000 then you will be fine.

Becs

Hi Poppy

Thanks for the reply. Unfortunately it doesn't take my savings to under the £6000, I'd still be over but at least it would reduce it.

poppy123456

Don't forget also that any earnings and UC payments are not treated as capital until the end of the following assessment period in which they were paid for.

If it's only been £250/month over then that's £4.35/month deduction in UC so not a huge amount.

Becs

I didn't know that…so may rules and regulations! I think it's been going over by an average of £1500 each month (after deduction of the cost of living payments) for about a year. I'm actually under the threshold now as I've had to start paying for my tooth implant. I feel so stupid for not realising. I just don't know whether to contact them now to let them know or just wait for the review process to take its course.

poppy123456

It's always better if you contact them to tell them what's happened, rather than them find out. Although it was money from your mum, it's still treated as capital and should have been included with your other capital. If there's an overpayment you will need to repay that back. There may also be a small fine on top for not reporting changes.

Becs

Yes I know you're right but I'm dreading phoning them. Do you think leaving a note on my journal explaining it would be ok? Or should I just bite the bullet and phone?

poppy123456

To be clear, the deduction in UC is for capital of more than £6,000 and the deduction is £4.35/month for every £250 or part thereof over that amount.

You can log into your journal and report a change of circumstances and then click money, savings and investments. They will highly likely want to see bank statements dating back to when your capital went above £6,000.

Becs

Thanks for all the advice. The thing is I'm under the threshold at the moment (as I've been paying for the tooth implant) it's just the previous months/year or so that I've been over.

Becs

Sorry to be a pain but I've realised I got a lump sum PIP payment on 23 June 2022 so when would I have that disregarded to? I know it's 52 weeks but my assessment period is the 7th to the 6th of the month so would it have started to be included in savings for the July 2023 period?

poppy123456

It would count from AP 7th June to 6th July 2023.