Universal Credit

(asked on 12th December 2022) - View Source

Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, pursuant to the Answer of 11 October 2022 to Question 54580, on Universal Credit, if he will make an assessment of the potential merits of facilitating temporary Universal Credit capital allowance extensions in cases where they would prevent the suspension of an individual's Universal Credit award in the period between the sale of one Wheelchair Accessible Vehicle and the purchase of another one, and where the purchase of that new vehicle absorbs all the additional income generated by the sale.


Answered by
Guy Opperman Portrait
Guy Opperman
Parliamentary Under-Secretary (Department for Transport)
This question was answered on 15th December 2022

Universal Credit is assessed in monthly assessment periods. Ordinarily capital is considered at the end of an assessment period. Therefore, the effect of capital on entitlement would depend on whether or not it was available to the claimant at the relevant time. Using the example given, if a wheelchair accessible vehicle was sold near the beginning of the assessment period and a replacement vehicle purchased before the end of that assessment period, then it is unlikely the proceeds would have any impact on the Universal Credit award, unless it increased the value of capital above the limits described above at the end of the assessment period.

The level at which capital starts to be claimed is above £6000. Entitlement to UC ends where capital is above £16000.

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