Universal credit migration

eel71 · June 6

Hi just had my first UC statement everything has gone through correctly faint praise, here is the kicker because i had 2780 in savings had £65 taken off my uc but the thing that really peed me off is within 2 hours the council rang me to tell me my council tax benefit has ended and i have now to pay a bill of £1069 doing the right thing having modest savings is a no no so from now on have to get everything under £6000

Kimi87 · June 6

I'm not understanding your figures. A deduction for £2780 doesn't make sense, and you wouldn't get UC at all if it was 27800.

No deductions for savings under £6k are made.

Only savings between £6-£16k have deductions (£4.35 for every £250 or part thereof over £6k).

Are you sure the deduction isn't for something else, what does the statement say alongside the deduction?

Council Tax Reduction is a separate issue, unfortunately some local authorities treat UC income differently to legacy benefits and some people have seen an increase in the amount they need to pay towards Council Tax.

Each local authority has different rules for this meaning it's very hard to advise on individual cases from here.

You need to ask your local authority to recalculate your entitlement to CTR.

OverlyAnxious · June 7

Possibly £9780 instead of £2780?

Some areas CTR stops or gets a graded reduction at £6k. If the OP wasn't aware of this they may not have updated savings with the council when they should have done.

Moving forward, if you do have to pay council tax now, you can choose to pay it monthly, rather than one lump sum.

eel71 · June 9

Yes sorry i had 2780in savings and my normal bank balance was over 6,000 i paid the council tax in full and paid my gas and electric so will in time get down to under £6000 in total i do think its a bit perverse you try to do the right thing and get clobbered for it

Universal credit migration

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