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£6k on ESA then £16k on UC?
- jba2020
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2 months 1 week ago #299486 by jba2020
£6k on ESA then £16k on UC? was created by jba2020
Just to clarify my thinking: I presently have approx £5,400 in savings and am in receipt of ir-ESA & HB.
I understand that being in receipt of ir-ESA, I would be allowed savings upto £6k but this amount gets reduced by £4.35 for amounts above the £6,000 limit.
Yet then on UC after migration from ESA, I would be allowed upto £16,000 savings/capital but this gets reduced by £4.35 for every £250 , above £6,000 ?
So as soon as I receive the first UC payment after migration, my benefit starts to get reduced/withdrawn by the £4.35 when over the £6,000 limit ?
Is this correct? thank you in advance.
I understand that being in receipt of ir-ESA, I would be allowed savings upto £6k but this amount gets reduced by £4.35 for amounts above the £6,000 limit.
Yet then on UC after migration from ESA, I would be allowed upto £16,000 savings/capital but this gets reduced by £4.35 for every £250 , above £6,000 ?
So as soon as I receive the first UC payment after migration, my benefit starts to get reduced/withdrawn by the £4.35 when over the £6,000 limit ?
Is this correct? thank you in advance.
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- David
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2 months 1 week ago #299491 by David
Nothing on this board constitutes legal advice - always consult a professional about specific problems
Replied by David on topic £6k on ESA then £16k on UC?
Hi jba2020
The Universal Credit Regulations regarding savings are as follows:
Assumed yield from capital
72.—(1) A person's capital is to be treated as yielding a monthly income of £4.35 for each £250 in excess of £6,000 and £4.35 for any excess which is not a complete £250.
(2) Paragraph (1) does not apply where the capital is disregarded or the actual income from that capital is taken into account under regulation 66(1)(i) (income from an annuity) or (j) (income from a trust).
(3) Where a person's capital is treated as yielding income, any actual income derived from that capital, for example rental, interest or dividends, is to be treated as part of the person's capital from the day it is due to be paid to the person.
But as UC is administered in monthly Assessment Periods it is the status of the claim at the end of the (AP) Assessment Period that is the salient factor. So If the savings go above £6000 at the start of the AP but then the money is spent and at the end of the AP the savings are below £6000 then there is no deduction at all.
Hope this helps.
David
The Universal Credit Regulations regarding savings are as follows:
Assumed yield from capital
72.—(1) A person's capital is to be treated as yielding a monthly income of £4.35 for each £250 in excess of £6,000 and £4.35 for any excess which is not a complete £250.
(2) Paragraph (1) does not apply where the capital is disregarded or the actual income from that capital is taken into account under regulation 66(1)(i) (income from an annuity) or (j) (income from a trust).
(3) Where a person's capital is treated as yielding income, any actual income derived from that capital, for example rental, interest or dividends, is to be treated as part of the person's capital from the day it is due to be paid to the person.
But as UC is administered in monthly Assessment Periods it is the status of the claim at the end of the (AP) Assessment Period that is the salient factor. So If the savings go above £6000 at the start of the AP but then the money is spent and at the end of the AP the savings are below £6000 then there is no deduction at all.
Hope this helps.
David
Nothing on this board constitutes legal advice - always consult a professional about specific problems
The following user(s) said Thank You: libra1, jba2020
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