IHR - Universal Credit

[Kellogsz]

So has anyone in the last 6month had the joy of dealing with universal credit and informing them of being ihr'd.
I'm trying to tell them I'm ill health retired ...and uc is arguing its redundancy pay.
Also telling them the lumpsum pilon will be used for debts etc...but they ain't interested...saying that's my problem.

Any advice

[iHateD2Ds]

If you have capital/savings worth more than £16,000 you will not be entitled to Universal Credit.

It's PIP you need to claim which is not affected by savings

Personal Independence Payment
Personal Independence Payment (PIP) is extra money to help you with everyday life if you've an illness, disability or mental health condition.

[greengiant]

You should be able to claim contributions based New Style Employment Support Allowance (ESA) regardless of savings

https://www.gov.uk/guidance/new-style-e ... %20format.

[gfte]

You can have savings over 16k in certain circumstances, what you need to look at is 'capital disregards'.

regular pension payments will be taken into account as income.

And the advise to look at New Style ESA is also correct, you will need a fit note / sick line / med cert.
You can also claim pip, and you can also claim uc, and receive all 3 if your circumstances fit.



Edit3: nah, if you're receiving pension income that will be taken into account as earnings, and any lump sum will be treated as savings.

Might want to hit up citizens advice / money helper/ council (in Scotland anyway they have teams to help folk do a benefit check), or clear the debts and claim again. Look up 'deprivation of capital' for that one.
Starting point though, they the gov.uk li led benefit calculators- I like entitledto.co.uk

[Kellogsz]

If you have capital/savings worth more than £16,000 you will not be entitled to Universal Credit.

It's PIP you need to claim which is not affected by savings

Personal Independence Payment
Personal Independence Payment (PIP) is extra money to help you with everyday life if you've an illness, disability or mental health condition.

I'm having to appeal ADP ie pip as not enough points etc most details I put and conditions they didn't look into.

[Kellogsz]

You can have savings over 16k in certain circumstances, what you need to look at is 'capital disregards'.

regular pension payments will be taken into account as income.

And the advise to look at New Style ESA is also correct, you will need a fit note / sick line / med cert.
You can also claim pip, and you can also claim uc, and receive all 3 if your circumstances fit.



Edit3: nah, if you're receiving pension income that will be taken into account as earnings, and any lump sum will be treated as savings.

Might want to hit up citizens advice / money helper/ council (in Scotland anyway they have teams to help folk do a benefit check), or clear the debts and claim again. Look up 'deprivation of capital' for that one.
Starting point though, they the gov.uk li led benefit calculators- I like entitledto.co.uk

When you say capital disregards do you mean debts etc. ...
Does that mean disclose amount then put done each debt to then give an actual figure of what's left...

Will call citizens advice tomorrow...as for the universal credit..my account is as a couple with wife as she gets PIP lwcra , carer element.

Will ask citizens advice about it all for ihr, universal credit, and esa....as getting no joy from universal credit on journal messages or phone.

[gfte]

'Capital Disregards' is a specific term for benefits.

https://www.uceplus.co.uk/disregarded-capital

Not a website I've used before but it looks to be a copy paste job from the dwp text. Disregarded capital is an amount of savings that is ignored for benefit purposes, either entirely, or for a period of 6 or 12 months.

For example if you sold your house for 100k, and were buying a new place within a couple months, that could be ignored temporarily, even though you are well over the limit.

UC do not take into account any debts at all. So theres no offsetting savings vs debt.

With your partner and all the other bits there I'd definitely have a word with citizens advice etc. Ask about paying off debt if that is your plan anyway. See the following link for now: https://www.entitledto.co.uk/help/depri ... sal-credit

[Kellogsz]

'Capital Disregards' is a specific term for benefits.

https://www.uceplus.co.uk/disregarded-capital

Not a website I've used before but it looks to be a copy paste job from the dwp text. Disregarded capital is an amount of savings that is ignored for benefit purposes, either entirely, or for a period of 6 or 12 months.

For example if you sold your house for 100k, and were buying a new place within a couple months, that could be ignored temporarily, even though you are well over the limit.

UC do not take into account any debts at all. So theres no offsetting savings vs debt.

With your partner and all the other bits there I'd definitely have a word with citizens advice etc. Ask about paying off debt if that is your plan anyway. See the following link for now: https://www.entitledto.co.uk/help/depri ... sal-credit

Plan is to clear debts for a easy life.. ..

[Kellogsz]

'Capital Disregards' is a specific term for benefits.

https://www.uceplus.co.uk/disregarded-capital

Not a website I've used before but it looks to be a copy paste job from the dwp text. Disregarded capital is an amount of savings that is ignored for benefit purposes, either entirely, or for a period of 6 or 12 months.

For example if you sold your house for 100k, and were buying a new place within a couple months, that could be ignored temporarily, even though you are well over the limit.

UC do not take into account any debts at all. So theres no offsetting savings vs debt.

With your partner and all the other bits there I'd definitely have a word with citizens advice etc. Ask about paying off debt if that is your plan anyway. See the following link for now: https://www.entitledto.co.uk/help/depri ... sal-credit

Got this from a universal credit help website and they say

The basic wage and pilon are taxable and should be seen a full wage until the next universal paystatmemt, if that combine with the lumpsum which is declared as capital savings then I'd be over the 16k but if before then I pay off some debts or all and report each change or savings ie debt paid and have evidence if need be and it doesn't look like deprivation then all is fine if recorded properly.
Just means for couple month we'd get zero uc then it would be normal I think

[gfte]

Got this from a universal credit help website and they say

The basic wage and pilon are taxable and should be seen a full wage until the next universal paystatmemt, if that combine with the lumpsum which is declared as capital savings then I'd be over the 16k but if before then I pay off some debts or all and report each change or savings ie debt paid and have evidence if need be and it doesn't look like deprivation then all is fine if recorded properly.
Just means for couple month we'd get zero uc then it would be normal I think

Sounds about right, except I would expect the claim to be closed immediately if they assess you to have over 16k in savings. It's one of the (cant remember the exact term) fundamental underlying eligibility criteria. I'd have a word with the cab / benefit advisor still if you can. May just mean a bit of admin to then submit your reclaim with your new capital amount.

[Kellogsz]

Got this from a universal credit help website and they say

The basic wage and pilon are taxable and should be seen a full wage until the next universal paystatmemt, if that combine with the lumpsum which is declared as capital savings then I'd be over the 16k but if before then I pay off some debts or all and report each change or savings ie debt paid and have evidence if need be and it doesn't look like deprivation then all is fine if recorded properly.
Just means for couple month we'd get zero uc then it would be normal I think

Sounds about right, except I would expect the claim to be closed immediately if they assess you to have over 16k in savings. It's one of the (cant remember the exact term) fundamental underlying eligibility criteria. I'd have a word with the cab / benefit advisor still if you can. May just mean a bit of admin to then submit your reclaim with your new capital amount.

I have no savings so in theory the £15k should be OK its when it gets to next uc ap date I'd have to make sure I've reported spending xy££ debt so that the pilon wage gets added to saving amount and it has to be 16k or under....I think
So our assessment period dates are 4th jan to 3rd feb
And I get paid on 31.01.2023
So I'd declare the 15k and later clear my loan of 8k an overdraft of 1k(auto clears when money goes in). That should keep it under before the 3rd of Feb...if that's how they do it.

Here's what the advisor said on universal credit help website.

I will go through each part step by step to assist you

I think the confusion lies with the payment being made via your wage as a lump sum - it will likely be being assumed the lump sum is redundancy pay

So the wage of £1200/£1300 & pilon will be treat as regular earnings on your uc award with a deduction made for this as normal (wage - work allowance = ? ? x 0.55 = deduction)

regular wages do not form part of your savings/capital until the end of the assessment period in which you receive them so if your assessment period is for example the 9th-8th & you receive the wage between 9th jan-8th feb - if any of the wage + pilon is left on the 8th of march then this forms part of your savings

The £15,456 lump sum medical retirement payment will depend on how the employer has reported it & if it is a tax free payment

If it is tax free then it will be capital/savings & would need to be reported on your uc under home - report a change - savings & investments. If it takes your savings to over £16k (remember not to include regular wage/pip/uc) then it would close your claim if above at the end of ap

Paying debt is fine for uc but do keep records to ensure no deprivation of capital is created

If the payment is taxable income then it would be treat as earnings which would create surplus earnings to carry forward to following ap’s until the surplus reduces to zero

[greengiant]

If you have capital/savings worth more than £16,000 you will not be entitled to Universal Credit.

It's PIP you need to claim which is not affected by savings

Personal Independence Payment
Personal Independence Payment (PIP) is extra money to help you with everyday life if you've an illness, disability or mental health condition.

I'm having to appeal ADP ie pip as not enough points etc most details I put and conditions they didn't look into.

With ADP and PIP it's not so much the condition / diagnosis they look at, but more the impact that your condition has on daily living / mobility.

So you need to show how your condition affects your life, and how it affects you safely, repeatedly and reliabily carry out the tasks in the descriptors on the form.

Citizen's Advice should help you with your appeal.

Good luck.

[gfte]

..

Ah good, yeah under 16k keeps things simple. Do remember as well that the first £6,000 (or has that gone up in the last couple years? 6,250?) Is ignored as well, so you can keep a 6k emergency fund (accessible emergency fund is always sensible) without reducing UC.

That advisor at least seems to have a grasp on it. I hate surplus earnings calculations. I ain't going near that one these days!