Savings while claiming universal credit

shortyt
shortyt Online Community Member Posts: 29 Connected
in Universal Credit (UC)
Hi sorry was meant to put this with my last message I'm due to get out my private pension either in May or April please can someone tell me how much they will stop out of my uc has it will be over £6000 and I'm not sure of the amount they will stop.

Comments

  • calcotti
    calcotti Online Community Member Posts: 10,001 Championing
    edited March 2023
    If you refer to a lump sum if you have capital over £6,000 your UC is reduced by £4.35/month for every £250, or part there of, over £6,000. Go over £16,000 and all UC stops.

    For regular pension income it is deducted in full from UC.
  • shortyt
    shortyt Online Community Member Posts: 29 Connected
    Your saying for regular pension income it is deducted in full from uc 
    I don't understand what you mean by that. I will be taking a lump sum the first 25% is tax free the rest I will get taxed on. 
  • poppy123456
    poppy123456 Online Community Member Posts: 64,463 Championing
    shortyt said:
    Your saying for regular pension income it is deducted in full from uc 
    I don't understand what you mean by that. I will be taking a lump sum the first 25% is tax free the rest I will get taxed on. 

    A regular pension income refers to either a weekly or monthly income from your pension.  You are drawing down a lump sum so it's classed as savings. Which will reduce your UC if it takes your savings over the allowed amount, as advised by calcotti.
  • shortyt
    shortyt Online Community Member Posts: 29 Connected
    Ok thank you  for your reply
  • jamrumples
    jamrumples Online Community Member Posts: 117 Connected
    I was transferred over £6000 into my account. It isn’t for me and will be put into a trust for my kids. Will this affect me in anyways. it’s not mine. It was just a means for me to draw it out so that I can set up an account for the children. You can see where it came from on statements and was withdrawn shortly after. Will I get in trouble for this? 
  • poppy123456
    poppy123456 Online Community Member Posts: 64,463 Championing
    jamrumples said:
    I was transferred over £6000 into my account. It isn’t for me and will be put into a trust for my kids. Will this affect me in anyways. it’s not mine. It was just a means for me to draw it out so that I can set up an account for the children. You can see where it came from on statements and was withdrawn shortly after. Will I get in trouble for this? 

    Where did the money come from? was it from a bank account in your name? if so then setting up a trust with this money could cause issues and be seen as deprivation of capital and you could still be classed as having the money.
  • jamrumples
    jamrumples Online Community Member Posts: 117 Connected
    No, from my mum. It’s what she has left for the kids. She wants it putting in an account for them. She couldn’t get to do it because she’s on palliative care. 
  • poppy123456
    poppy123456 Online Community Member Posts: 64,463 Championing
    jamrumples said:
    No, from my mum. It’s what she has left for the kids. She wants it putting in an account for them. She couldn’t get to do it because she’s on palliative care. 

    As the money was paid into your bank then there could be issues if you transfer it to the childrens names. It would have been better to open a bank account for the children before the money was transferred.
  • jamrumples
    jamrumples Online Community Member Posts: 117 Connected
    Hindsight is a great thing. It’s not mine though. It’s out of my account. Ready for them.
  • jamrumples
    jamrumples Online Community Member Posts: 117 Connected
    Guess I’ll just leave it under the mattress until their 18 if it’s gonna cause problems 
  • jamrumples
    jamrumples Online Community Member Posts: 117 Connected
    Can you tell me the figures please. 

    £10,000 was transferred. £3,300 for each child. 

    £10,000 is no longer in my account but obviously if this is going to create more problems, can you tell me please what I’m looking at deductions wise, what’s best to do rather than telling me what I should’ve done because, that’s not going to help me now. 
  • poppy123456
    poppy123456 Online Community Member Posts: 64,463 Championing
    jamrumples said:
    Guess I’ll just leave it under the mattress until their 18 if it’s gonna cause problems 

    That doesn't really help because questions maybe asked in the future, they have ways of finding out. For every £250 or part there of over £6,000 (all your savings count, regardless of where they are) there's a £4.35/month deduction.
    Savings of more than £16,000 then entitlement to all means tested benefits end.
    If you're claiming council tax reduction some local Authorities have a maximum savings limit of £6,000 before entitlement ends. You will need to look at their website to see if there's any information.
  • jamrumples
    jamrumples Online Community Member Posts: 117 Connected
    What’s Q’s exactly? … if it’s not in the account I don’t see how it should affect my benefit, It was sent to me so that I could fulfill her wish of making sure her grandchildren got it…. It’s no longer in the account. 

    So if it’s not in my account, and technically you can see where it came from… it’s clear to see before this my money is very much come and go no savings ever. I got sent a sum of cash… and I tell them where it is and the plan for it, what would be the issue? I really don’t understand. 


  • poppy123456
    poppy123456 Online Community Member Posts: 64,463 Championing
    What i'm saying is that the money was transferred into your bank account. I know you withdrew the funds but it makes no difference, savings count regardless of where they are. DWP may ask questions if the money was withdrawn, even though you say it's for your children.
    All you can do is report the money and tell them what it was intended for. It will be down to a decision maker to make the final decision.

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