UC case review...

Annabizzle
Annabizzle Online Community Member Posts: 3 Listener
in Universal Credit (UC)
Hello, newbie here...  I've just had a request for 4 months bank statements (so Jan - April) and an ID check from UC.  I'm intensely worried about a few issues and wondered if anyone could prepare me for what's to come...

FYI Most months I only receive help with childcare and no actual UC...

** In Jan/Feb my family loaned me £20k to pay off debt and to help with the fees of buying a property.  It fell through, so 15k of it has been sitting in a high interest savings account while waiting for the second attempt to go through...  I didn't even think to tell them because 1) it's a loan which I'll pay back over a number of years and 2) I thought it would be in and out of my account within a month. Where possible I've added a few hundred, to prepare for the impending huge outlay...  Will I be penalised for this?  I can prove with emails/invoices the fallen sale/future costs ect  Do I need to get letters from family to prove all this too?

** I've got £500 in a savings account for my son, but officially it's in my name (just labelled with his name) which I've never counted, as it's his savings. I don't suppose that will wash will it?

** The savings I have declared are well under £6k but I haven't updated them when they in/decrease - kicking myself now, but the last 6 months have been v stressful and I'm rubbish at life admin...

** I'm SE and have a business account that has a few thousand in it which I just keep there as a buffer in case disaster strikes or I suddenly need expensive equipment for work - would this count as savings?  

** I'm not very good with maths at all and although I go down to the penny recording outgoings/income, what if there are the wrong kind of mistakes which were unintentional..  As a single parent with mild MH problems, it's sometimes overwhelming and I just rush through it

** Finally, do handouts from friends and family count as income - some are to help me, some I can't even remember, possibly to pay me back for something months before.

I'm terrified that none of this will be good enough and I'll be penalised.  Even paying anything back will impact my son and I greatly as once we've moved, things will be super tight.

Thanks for reading I appreciate any help...

Comments

  • poppy123456
    poppy123456 Online Community Member Posts: 64,463 Championing
    edited May 2024
    Childcare is part of UC so yes you receive UC. Without UC there would be no childcare. 

    Paying off debt is allowed when claiming UC and will not be treated as deprivation of capital. 

    However, that large amount of money you have in a savings account is treated as capital and you should have reported it. The only time capital like this is disregard is if you sell a property you live in and you're planning on buying another. As this money came from your family then yes it’s still yours. You should have reported it. 
    Capital of more than £16,000 means there’s no entitlement to UC. For every £250 or part thereof over £6,000 there’s a £4.35/month deduction in your UC. 

    The money that’s in a bank account for your son is your money if it’s in an account in your name so yes that will be counted to. 

    “Handouts?” If you mean money from family and friends, this isn’t income, it’s treated as capital. 

    You should have also reported your business account because this isn’t always disregarded and can be treated as your capital and not for your business. 

    You need to be honest and tell them exactly what’s happened. Telling them is always better than them finding out their self. Any overpayment will need to be repaid back. There will
    likely also be a small fine on top of any overpayment for not reporting changes. 
  • Annabizzle
    Annabizzle Online Community Member Posts: 3 Listener
    Thank you for your detailed response.  I will be calling them tomorrow...

  • Rosie_Scope
    Rosie_Scope Posts: 5,739 Scope Online Community Coordinator
    Hi @Annabizzle, looks like Poppy has already given a really detailed answer but I just wanted to say hello and welcome you to the community. Good luck with the phone call today, hope you're able to get things sorted without too much stress!
  • Annabizzle
    Annabizzle Online Community Member Posts: 3 Listener
    Thank you @Rosie_Scope.  I'm just going to be upfront and provide all the evidence as and when they ask for it.  Have a great day/week Ax

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