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Hi, my name is Sparky1965!. Question about UC savings limit and PIP

Sparky1965Sparky1965 Member Posts: 1 Listener
edited April 14 in Universal Credit

Hi Everyone, For 20yr I was a Production Manager in Electronics, at which time I was paying the max £120pm N,I,/Earnings Related imposed by Government on high earners. In 1997 Electronics companies pulled out of Scotland after using of their Scottish incentive grants, they moved to Far East 4 cheap Labour.

 

I had keen Interest in Photography and with my computing skills I opened up a Photography and Photograph Restorations shop and Photo Studio, was successful for next 20yr.

In 2011 I had a bad accident leading to chronic pain and unable to sit. I had to make a stand up Workstation. I had hidden bed behind desk in front shop. as the Tramadol and Fentanyl would wear off  each 2.5hrs leaving maximum pain for next 1.5hrs,  I would hide behind curtain lying on bed, if any customers came in I would compose myself but was screaming in my mind for them to go

.

In 2014 a customer told me about PIP, I applied and recieved highest mobility and Standard Personal Care. In 2017, kids all grown up, my spouse told me she wanted to sell up as she had someone else. The pressure of living together as neither could buy the other out; I ended up taking a serious heart attack. I had 4 stents fitted but because of my disability could not do rehabilitation, tried re-opening shop but only lasted few days, so breathless. Ended up in one of upstairs bedrooms bedridden with carers twice per day,

 

I was reassessed by PIP and recieved the two highest elements. In 2019 spouse still half living in house half at new partners was intolerable strain. I turned 60 in October 2018, Council moved me into sheltered living complex in a one bed roomed bungalow. I was moved from ESA to U.C.

 

This is where I need help with accurate information. PIP has no interest in what savings you have and I am on highest rates, Universal credit has a limit of £6000 or £16,000 but you have to pay them 20% of your savings back. When I started U.C I had to wait on LCWRA, which was backdated for the 3 months assessment, this LCWRA took me over the £6000 threshold and with PIP and LCWRA every 3 months I go over the lower threshold and have to buy something not needed. I worked for 43yr, well paid into the Government but moving into this council sheltered housing has put my PIP no savings limit at the regulations under U.C instead of ESA. It’s worse because Covid restrictions do not allow you to go and get any therapies done to entertainment. I’ve given my 2 kids £14,000 since they were furloughed but not held my toddler Grandchildren from my Son and Daughter. Does this strict UC Limit apply when you are on PIP as well? This may sound money grabbing, but vie more than paid into the state and my Earnings Related was done away with so will just be state pension as what they took from earrings related went into General Taxation, when Gordon Brown raided the pot in 2000!


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Replies

  • emmarenshawemmarenshaw Member Posts: 712 Pioneering
    Hello @Sparky1965 I’m Emma, one of the Community Champions who are here to help and advise. I’m going to tag @Cher_Scope to see if she can assist you with your query.
  • wilkowilko Member Posts: 2,357 Disability Gamechanger
    @Sparky1965, hello and welcome to the community, I know where your coming from ,worked all your life paid NI and TAX while others can’t, or won’t work getting benefits for not paying to the system. Sorry but that what the welfare state system works. You have paid in and now claiming something back rightly so, you, I and well off claimants have to accept that we will get less because of our sensible live style putting a little away for a rainy day, paying into a private pension doing with holidays not smoking or over drinking ect. It tough putting in a claim for benefits only to find deductions because you have saved for a better later life or retirement. I myself am ashamed to admit I thought along these lines the scourgers, benefits cheats, why aren’t they working ,do cash in hand jobs here and there. But some cases are true but when you meet the so say cheats snd hear their stories I have learned to so compassion and understanding to their plight. You and many of us will have to be thankful for the state benefits system what ever the faults there are.
  • calcotticalcotti Member Posts: 2,235 Pioneering
    edited April 9
    Sparky1965 said:This is where I need help with accurate information. PIP has no interest in what savings you have and I am on highest rates, Universal credit has a limit of £6000 or £16,000 but you have to pay them 20% of your savings back. 
    Not sure where paying back 20% of savings comes from. The deduction for savings is £4.35/month for every £250, or part thereof, over £6,000.

    LCWRA, which was backdated for the 3 months assessment, this LCWRA took me over the £6000 threshold 

    The arrears payment should be disregarded as capital for 12 months.
    https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/932331/admh2.pdf
    See paragraph H2091
    Sparky1965 said:.. but moving into this council sheltered housing has put my PIP no savings limit at the regulations under U.C instead of ESA. 
    I don't understand what you mean by this.
    Sparky1965 said: I’ve given my 2 kids £14,000 since they were furloughed 
    You need to be mindful of 'deprivation of capital' rules. If you give money away you can be treated as if you still have it if DWP consider a motivating factor was to access benefits or increase entitlement. If DWP discover these payments in the future you will be asked to explain and justify them. If they decide deprivation of capital has occurred and you have been overpaid UC then they will require you to pay back the UC.
    Sparky1965 said: Does this strict UC Limit apply when you are on PIP as well? 
    Yes. 

    I'm not clear what prompted the move from ESA to UC (unless you changed local authority) but that is irrelevant now.

    When you reach pension age you will be able to claim Housing Benefit to help with the rent and may be entitled to Pension Credit to top up your pension depending on your circumstances at the time. PIP will continue (provided DWP consider you still meet the conditions).
    Information I post is for England unless otherwise stated. Rules may be different in other parts of UK.
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