universal credit

[Mohammad Alam]

I am British citizen with two British child. My wife is my dependent and submitted her FLR M extension last month. We are planning to claiming benefit. We never been on benefit. I had around £16000 on my account in January which was been there for a while. I withdraw all the money end of the January. In my account there are not much money left. I get pay monthly. I wanted to apply for UC after having my February salary. My question is for UC do I have to show 3 month bank statement? If I show 3 month payslip, will it be a issue to withdraw such a amount in January for my claim?

[Casa]

Withdrawing a large sum prior to applying for UC may well be perceived as an attempt to reduce your savings in order to qualify for benefits.

What was the reason for the withdrawal Are you still in possession of the £16,000

[JB007]

I withdraw all the money end of the January. In my account there are not much money left. I get pay monthly. I wanted to apply for UC after having my February salary. My question is for UC do I have to show 3 month bank statement? If I show 3 month payslip, will it be a issue to withdraw such a amount in January for my claim?

Are you removing this money to try to hide you have this, so that you can have low income benefits?
Not only do the DWP check, but HMRC do constant sweeps for the benefits agencies too. That is just one of the many goverment departments/agencies/credit footprints etc the benefits agencies now do to detect benefit fraud.

Unless you can give them a genuine reason of what that money was spent on, and they accept that reason as something that is allowed under the Deprivation of capital rule for welfare benefits, then you will treated as still having that money (even if you don't anymore anymore).

[JB007]

We never been on benefit. I had around £16000 on my account in January which was been there for a while.

The low income poverty cap is a very generous 16k.If you have under 16k, you can claim Universal Credit. If you have just over that, you might have to wait until the DWP say you can claim (they say how much you will need of that money each week), unless they deem you were allowed to spend some of that money under their Deprivation of Capital rules. Once you ask for benefits, you are giving them permission to look into your finances.

It's really not worth trying to hide money from the benefits agences as eventually these are caught, even years later, and they then face the consequences.

[CR001]

We never been on benefit. I had around £16000 on my account in January which was been there for a while.

The low income poverty cap is a very generous 16k.If you have under 16k, you can claim Universal Credit. If you have just over that, you might have to wait until the DWP say you can claim (they say how much you will need of that money each week), unless they deem you were allowed to spend some of that money under their Deprivation of Capital rules. Once you ask for benefits, you are giving them permission to look into your finances.

It's really not worth trying to hide money from the benefits agences as eventually these are caught, even years later, and they then face the consequences.

OP is in a bit of a 'catch 22' situation as for the spouse visa route, he has to earn a minimum of £18,600pa but to claim UC as you say, he must earn less than £16,000 pa.

To the OP, note that benefits cannot be used towards the financial requirement for your spouse's visa and ILR.

[JB007]

OP is in a bit of a 'catch 22' situation as for the spouse visa route, he has to earn a minimum of £18,600pa but to claim UC as you say, he must earn less than £16,000 pa.

To the OP, note that benefits cannot be used towards the financial requirement for your spouse's visa and ILR.

Sorry if I wasn't clear. The 16k cap for low incone benefits, is capital they hold. e.g. if they had 16k savings, then that is too much to be able to claim Universal Credit. £15,999 savings, then they can claim, but the DWP will look into their past finances to see if they have disposed of capitl to be able to claim benefits.

[JB007]

Low earning parents can claim Universal Credit, but there are work requirements that they will have to meet. But as you say, they need to meet the requirements for a visa, or the requirments to be a worker under EU rules (to have UK benefits).

Even those with children on a higher wage might be able to claim UC, e.g. they earn 35k, but rent in an expensive area of the country. Some of these might choose to move to Universal Credit as these will often get more benefits under Universal Credit, but once they apply to move to UC, they can't return to the old (legacy) benefits they were claiming before. But there is a 2 child limit and their children will not be children forever and these parents will need to start keeping themselves. UC requires both parents to work.


There is very lttle benefits for those that don't have children, or for those that own their own property.

[JB007]

Basically, if they have rainy day money, then they when that rainy day comes they use that money to keep their family until they find more working hours/better pay.

If their capitil then drops to below 16k and they haven't been overspending to reduce their capital, they can have Universal Credit.

[JB007]

Are you removing this money to try to hide you have this, so that you can have low income benefits?
Not only do the DWP check, but HMRC do constant sweeps for the benefits agencies too. That is just one of the many goverment departments/agencies/credit footprints etc the benefits agencies now do to detect benefit fraud.

If you are thinking of doing this, be aware that these checks are meaning that people are getting caught 20 plus years later.

If it a low amount and therefore no court case is being brought, they are told to contect the relevant benefit agency to sort out repayment. Those who ignore that letter, then contact that agency when they find their take home pay is less because their tax code has been amended to start collecting that debt and fine, or their benefits are reduced (including a state pension).

[Mohammad Alam]

The reason for keeping that money in my account for a while because I apply for my parent visit visa so I had to show a healthy balance. my cousin also kept some money in my account which was around £7000. I returned it back. Recently had to spend another 3000 for wife flr m application. so all the money has gone out. I was wandering if I claim UC probably it will be issue. Better wait another month to get pass another month bank statement. Anyone have any idea how long bank statement they ask for UC claim?

[JB007]

The reason for keeping that money in my account for a while because I apply for my parent visit visa so I had to show a healthy balance. my cousin also kept some money in my account which was around £7000. I returned it back. Recently had to spend another 3000 for wife flr m application. so all the money has gone out. I was wandering if I claim UC probably it will be issue. Better wait another month to get pass another month bank statement. Anyone have any idea how long bank statement they ask for UC claim?

If you were pretending that you had more money than you did to get a visa for your parent, that might backfire as that money is seen as yours for benefit purposes. It's not just when to get in a claim for Universal Credit, but that government departments now share information.

At some point in the future, HMRC will report to the DWP (the department that runs UC) that you had this money. It's highly likely that you will then get called in and asked where your money went. If they find that you deprived yourself of capital to claim benefits, then you might have all sorts of problems, the very least being that you will have to pay all the benefit money back.

[JB007]

my cousin also kept some money in my account which was around £7000.

That's unfortunate, for you, as although there is a 16k cut off to be able to claim Universal Credit, amounts over 6k are counted in the benefit calculation. For ever £250 over 6k, £1 is reduced from the benefit amount.

[Casa]

On another issue, if your household's income is £16,000 p.a or below (for UC), how did you meet the minimum earnings level of £18,600 p.a for your wife's FLR(M) application?

[JB007]

You can read more on deprivation of capital here-

Deprivation of capital is when you knowingly reduce or transfer elsewhere your savings or other capital to get, or increase your award of Universal Credit. This may be before making a claim or during an existing claim.

https://www.entitledto.co.uk/help/Depri ... sal-Credit

The DWP will look at the evidence to decide if you have reduced your savings or other capital, by how much and why you did this. You will be treated as still having the capital if it is decided that you did this to get, or increase your award of Universal Credit.

[JB007]

On another issue, if your household's income is £16,000 p.a or below (for UC), how did you meet the minimum earnings level of £18,600 p.a for your wife's FLR(M) application?

I don't think I made myself very clear above, sorry.

The capital cannot be above 16k for a Universal Credit claim.

The earned income can be over 16K for a Universal Credit payment.


https://www.entitledto.co.uk/help/savings
You cannot get any of the means-tested benefits (income-related Employment and Support Allowance, income-based Jobseeker's Allowance, Income Support, Housing Benefit or Universal Credit) if your capital is above the upper limit of £16,000.

The definition of savings for the means test in benefits includes:

cash;
money in bank or building society accounts, including current accounts that don’t pay interest;
money in a Tax Free Childcare account (enter 80% of value)
National Savings accounts and certificates;
income bonds;
stocks and shares;
property (other than your own home);
Premium Bonds;

[JB007]

When people claimed the low income benefit Tax Credits, there was no 16k cut off with savings. All that happened was that they lost £1 a week for every £250 savings they had. Other capital wasn't counted, such as any property or land abroad, nor any capital in property they didn't live in in the UK. e.g. this meant that a landord could claim Tax Credits, whereas under Universal Credit, they cannot claim.

Under the Welfare rerform laws, UK benefits are returning to a temporay help for those in dire need and will end for those who live on benefits as a lifestyle choice. These new laws have also stuck out the ECJ(?) ruling that Tax Credit benefits must be paid in other EEA countries. TCs are being replaced by Universal Credit and UC does not allow that : these will now have to claim from the country they live in.