Hi, my name is summer_55! Lump sum payment and UC
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summer_55
Online Community Member Posts: 1 Listener
Looking for something advice iv just recieved a lumpsum payment for pip which will take me over the savings threshold for uc..will.my benefits stop as I applied for the pip a year ago and its just been rewarded..will my uc stop untill it goes under 6000 ?
Thank you in advance.
Thank you in advance.
0
Comments
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Hi there @summer_55 and welcome, thanks for your query. Scope has some information on lump sum payments and benefits, the key point is:Income-related ESA or Universal Credit
If your savings are:- under £6,000, your benefit claim is not affected by your savings
- between £6,000 and £16,000, you lose some of your benefit payment
- more than £16,000, your Income-related ESA or Universal Credit will stop
- £4.35 of monthly income for Universal Credit
- £1 of weekly income for Income-related ESA
The first £6,000 is ignored. Every £250 of the remaining £1,000 counts as £1 of weekly income.
This means £4 comes off your weekly ESA payment.Is that making sense?
I'm glad to hear you've finally been awarded PIP, but sorry that it's caused a bit of trouble now- hopefully this can help reassure you
Let us know if you still have further questions, and we'll do what we can to help.
Alex0 -
What Alex has posted is not immediately relevant. The arrears are ignored for 12 months.Paragraph H2091If you still have capital over £6000 after 12 months your UC will be reduced by £4.35/month for each £250, or part thereof, over £6,000 as outlined in the information Alex posted..0
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If it was backdated money then it's disregarded for 1 year for all means tested benefits. If at the end of that year you have more than £6,000 in total savings then the above savings rules will apply.
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Thanks for clarifying that point both, very helpful0
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