universal credit and pip backpay

ketokid
ketokid Community Member Posts: 148 Contributor
in Universal Credit (UC)

Hi can anybody help me please, I won my pip tribunal in March 2025, was on ESA and in the support group but had to go on to UC. We went to the job center and took bank statements etc. and they were told that I got back payment from my pip tribunal and a lady rang a week later and we told her about my money which was money owed to me. however, we had a message a few weeks ago from UC wanting to know what we had in our accounts, so we did it all online on the UC login. Anyway, I was totally shocked when I check my UC account to see when my next payment is due and to my horror, they have taken over one hundred pounds of my next payment because I have got savings, but they are not savings its backpay I thought this should be disregarded and it would not affect my UC, Thanks

Comments

  • Kimi87
    Kimi87 Community Member Posts: 9,064 Championing

    There is a 12 month disregard for benefit backpay.

    As it's been over that time, it now counts as capital for UC purposes.

  • ketokid
    ketokid Community Member Posts: 148 Contributor

    Thanks, Kimi87 omg we are keeping that money aside because of my new and worsening health conditions, how much are we allowed to have in the bank please we need to have a wet room fitted has I can't use a bath or shower over bath x

  • ketokid
    ketokid Community Member Posts: 148 Contributor

    I don't think it's a year yet because we only went on UC in October 2025 so I can't under why

  • Kimi87
    Kimi87 Community Member Posts: 9,064 Championing

    When you received your backpay this would have started the 12 month disregard clock under ESA, which carried over (but not restarted timewise) to your UC claim.

    Entitlement to UC would end if you have over £16k in capital.

    If the backpay was over £5000 then there is potential to have it disregarded as long as your UC claim lasts.

    As this is a complex area to give advice on I'd recommend contacting a local welfare rights organisation who have trained benefits advisors.

    https://advicefinder.turn2us.org.uk/

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