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Hi, my name is summer_55! Lump sum payment and UC

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summer_55
summer_55 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.

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  • Alex_Alumni
    Alex_Alumni Scope alumni Posts: 7,561 Disability Gamechanger
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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
    Every £250 over £6,000 counts as if you had:
    • £4.35 of monthly income for Universal Credit
    • £1 of weekly income for Income-related ESA
    For example, you receive Income-related ESA. You have £7,000 in savings.
    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.

    Alex

    Online Community Coordinator
    Scope

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  • calcotti
    calcotti Community member Posts: 10,010 Disability Gamechanger
    edited November 2022
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    What Alex has posted is not immediately relevant. The arrears are ignored for 12 months. 

    Paragraph H2091

    If 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..
    Information I post is for England unless otherwise stated. Rules may be different in other parts of UK.
  • poppy123456
    poppy123456 Community member Posts: 57,004 Disability Gamechanger
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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.
    I would appreciate it if members wouldn't tag me please. I have all notifcations turned off and wouldn't want a member thinking i'm being rude by not replying.
    If i see a question that i know the answer to i will try my best to help.
  • Alex_Alumni
    Alex_Alumni Scope alumni Posts: 7,561 Disability Gamechanger
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    Thanks for clarifying that point both, very helpful :) 
    Online Community Coordinator
    Scope

    Concerned about another member's safety or wellbeing? Flag your concerns with us.

    Want to give us feedback? Complete our feedback form now.
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