UC Savings Limit and the cost of living support payment

Hello, I joined this forum because I have entered the world of UC claims for my daughter (who is not able to manage this herself).

She receives PIP and now we have applied she also receives Universal Credit but because she has some savings over £6,000 (mostly from when her grandparents saved into an account for each of their grandchildren and gave them the money at 18), her Universal Credit is reduced. She is gradually spending her money and at some point in the coming months we expected her savings to go below the UC limit of £6,000.


It looks like she will receive the cost of living payment of £650 and also the disability payment of £150 which the government announced.

Will this extra £800 have to be added to her savings balance and mean it goes back up even more over the limit of £6,000? They said it would not affect your entitlement to benefits etc but I guess it will?

Hi, may I suggest you check out getting a discretionary trust set up around any future inheritance your daughter might receive, so any money won't get eaten up reducing her benefits and causing an admin nightmare for her when you aren't there to sort it for her? A relative who wants to do this for our daughter has done so, it is quite legit when the person is on PIP.
It is so frustrating to see the grandparent's lovingly saved money not doing what they had intended because of the situation.
Best wishes,
Denby