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Pip back payment

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7 months 3 weeks ago #289464 by madmanx
Pip back payment was created by madmanx
Hi I had a phone call today informing me that I'm due a pip backpayment for the mixing with other people law change, thing is im going to be getting a large payment which will put my savings over the 6000 that I'm allowed to have on my universal credit, do I have to spend it straight away? And do I have to tell universal credit that I'm getting it? I read somewhere u have a year to spend it, is that right? Any help be nice thanks.

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7 months 3 weeks ago #289497 by Chris
Replied by Chris on topic Pip back payment
Hi madmanx,

I can certainly help you with this, as the same thing happened with me. You get a year to spend the backdated DWP payment before it's classified as savings income. After that, then it will affect your UC. I didn't declare mine to UC for a couple of reasons: 1. I didn't know that I only had a year to use it, and ended up locking it away in an ISA, for which I am now being penalised via my UC and 2. When UC asked to check my bank statements, they went back first 4 months, then seen that I had over £6,000, and told me I had to give them a years worth of bank statements, including all my ISA account details. Cut the long story short, they are now taking it back off me as an overpayment on my UC, I also got fined £50 for not telling them as they said that basically not knowing isn't an excuse for me not informing them.

Hope this information helps.

Regards, Chris.

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