WIll credit from my energy supplier affect my UC?

System
System Posts: 251 Online Community Programme Lead
edited October 2 in Universal Credit (UC)

This discussion was created from comments split from:

The Universal Credit Bill becomes law. Here are the changes to disability benefits you need to know

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  • Socrates63
    Socrates63 Online Community Member Posts: 67 Empowering

    Hi all

    Does anyone know what to do with this conundrum? My friend has recently gone to uc from esa and everything sorted. However, she's informed them that she's got £5500 in bank account. But she wants to change her gas and electricity supplier and has £3000 in credit with the supplier. She's asked numerous suppliers if she can transfer her credit from existing supplier to hopefully a new supplier which will be cheaper. They say it can't be done as when you cancel existing supplier they have to pay your credit into bank account, which obviously takes her over allowed £6000 and uc would penalise her for it. At least that's what I think would happen. I really don't know what to tell her as this situation is new to me. Am I wrong? I honestly don't know. Surely must be a way round the problem. Many thanks

    Socrates 63

  • Albus_Scope
    Albus_Scope Posts: 11,414 Scope Online Community Coordinator

    Hi @Socrates63

    Just to let you know I've split your question off into it's own discussion so it doesnt confuse anyone in the other discussion. I hope that's ok.

    Your question has also been answered here.

  • Rachel_Scope
    Rachel_Scope Posts: 1,914 Scope Online Community Coordinator

    Hi @Socrates63, you're correct in that they would be 'penalised'. Here's the information I found.

    If you have money, savings and investments between £6,000 and £16,000 your Universal Credit payments will be reduced.

    Your payments will be reduced by £4.35 for every £250 you have between £6,000 and £16,000. 

    Another £4.35 is taken off for any remaining amount that is not a complete £250.

    Hope that helps.

  • MW123
    MW123 Scope Member Posts: 1,552 Championing
    edited October 3

    @Socrates63

    If it were my friend, I would tell them to cancel the direct debit with their current supplier and use the £3000 credit to pay bills manually. Once the credit’s reduced enough to keep their savings under the £6000 UC limit, they can switch suppliers without triggering a deduction. Slower, but safer.