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Original poster

Depravation of assets UC

45 replies

Dakmor · 01/05/2021 10:55

Hi everyone.
My Mum died of covid 19 after contracting it whilst in hospital after having a fall.
I'm a grandma myself and have two of my Granddaughters living with me under social services..I have an Special guardian order for both aged 11 yrs.
I get by on UC with housing benefit and family allowance.
Once I have sold the house I will need to pay estate agents solicitor and my brother who paid the funeral bill with his visa credit card..
I will be left with around £40,000.
I don't drive but have always wanted too as the girls have to taxi to school everyday and have clubs, friends etc quite far away.
So my question is..If I bought a car and paid for lessons maybe a new Nissan Quashqi..and also I'm propping my TV up by the chimney breast to stop it falling over, so need a new one, I need a few new white goods and a settee as mine is broken beyond repair, and also a visit to see my sister overseas who I haven't seen for over 12 years (australia) will I be seen as depriving my assets?
As this will be lots of expenditure in possibly a two week period and will also see me fall under the £6, 000 threshold for benefits..Do you think they will see this as excessive or do my purchases seem valid.

OP posts:
ThisIsSimplyBeyond · 01/05/2021 10:59

Afaik, the only one there that might count as DoA is the trip to see your sister. Essential DIY, white goods, car and driving can all be argued as reasonable. It's not black and white though, they'd take more issue with a Ferrari than a Ford Fiesta for eg

Babyroobs · 01/05/2021 11:33

Deprivation of assets is all about what the DWP consider reasonable spending. A reasonable second hand car would be considered reasonable, an expensive one may not be. Replacing broken furniture would be fine. A trip to Australia well I'm not so sure on that one ! You can still claim UC as long as savings are under 16k, there would just be a small reduction for anything over 6k, something like around £16 per £1000 over 6k, so what I'm saying is you really don't need to spend most of it to still be eligible for UC. the DWP will know about the inheritance so you do need to be very careful as they could treat you as if you still have it. Make sure you keep all receipts.

Gilead · 01/05/2021 12:18

You are actually allowed a holiday. The rest is fine too.

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Benefits
Original poster
Dakmor · 01/05/2021 12:45

Thank you for you for your swift responses.
Its actually a relief to know I won't be in trouble for buying/replacing household items and taking my driving lessons to buy a car.
I never have or ever will have savings so this is my one and only chance to do all of this.
I really hope I can see my sister as we are caught in a situation were she can't afford to come here and I've never been able to afford to go there.
I can't leave the girls with anyone and the only other alternative would be to go in temp foster care which I would never do..so I would have to take them with me.
Also thanks for the heads up on the £16,000 allowance, I didn't know this I thought it was £6,000.

OP posts:
Oddbutnotodd · 01/05/2021 12:49

I think you are better buying a nearly new car as that would save quite a lot of money. Insurance will also be expensive initially as a new driver. Good luck with your plans.

Original poster
Dakmor · 01/05/2021 13:25

Thanks..Yes, I agree about the secondhand car option but also don't want to go too cheap and have any issues with it..
Would £15,000 seem a reasonable amount to spend?
I've checked some insurance quotes and they aren't too bad I think it's because of my age and a lockable driveway (gated).
Also just to add I won't be staying in hotels on the trip so it's literally for flights only.
But my goodness I need a hug from my sister who wasn't able to attend the funeral because of the cost factor. I hope the DWP understand that it's not just a trip to Disney land or a few weeks in Dubai.

OP posts:
balloonsandboobies · 01/05/2021 14:05

All I've come here to say is don't buy a new car. Even 15k is a lot to spend on your first car. They literally lose money money as soon as you drive them away from the showroom / garage.

Acovic · 01/05/2021 14:11

Buy a small second hand car.

Personally I love my skoda fabia but with the move to electric vehicles this may no longer be a great choice!

Blackjackontherocks · 01/05/2021 14:51

I’m sorry for the loss of your mum Flowers

I’m a benefits caseworker. I suspect a decision maker would get trigger happy and say it was deprivation of assets (especially If you spend that amount of money in two weeks). You’d then have to go to tribunal where I think you’d be successful in getting the decision over turned and the UC arrears paid. But you would be without your UC until then. If you’re getting Carers Allowance plus DLA (not sure if your grand daughters have health needs) and potentially Guardian’s Allowance/a payment from the local authority) maybe this would be doable.

There is a huge amount of caselaw which says that what you intend to do is ‘reasonable’ but ime most decision makers are far too happy to say it’s deprivation. It would be ‘safer’ to buy a used car than a new car and the trip to Oz would have to be carefully described I’ve even seen decisions where claimants have paid off debts and it’s been called deprivation even though it’s explicitly in the UC regulations that paying off debts is allowed. Tread very carefully.

Babyroobs · 01/05/2021 15:30

@Dakmor

Thanks..Yes, I agree about the secondhand car option but also don't want to go too cheap and have any issues with it.. Would £15,000 seem a reasonable amount to spend? I've checked some insurance quotes and they aren't too bad I think it's because of my age and a lockable driveway (gated). Also just to add I won't be staying in hotels on the trip so it's literally for flights only. But my goodness I need a hug from my sister who wasn't able to attend the funeral because of the cost factor. I hope the DWP understand that it's not just a trip to Disney land or a few weeks in Dubai.
I doubt spending 15k on a car to continue to receive benefits would be deemed acceptable !
Milkywaystars · 01/05/2021 15:53

Don't buy a brand new car, one or two years second hand is fine because cars lose their value as soon as you've bought it. Our car was 1 year old, had only 1 owner and cost us £10k less buying it 12 months later. Not had a problem with it so far.

Car, insurance & driving lessons £10k max

Replace your household goods/furniture but don't spend the lot in one go. £5k max shop around & IKEA is good for sofas & beds

Put £15k in premium bonds for a rainy day emergency fund or a private pension. £15k

Put £5k each in a stocks & shares ISA for your grandchildren. =£10k will come in handy for university/training or house deposits later. Make sure it's in their names.
money saving expert

Grand total = £40k

The premium bonds can be cashed in later for a holiday when it's safe to travel. You've just locked it away so you don't fritter it away on rubbish. You could also win a bonus in their monthly prize draw. www.nsandi.com/products/premium-bonds

Babyroobs · 01/05/2021 15:56

[quote Milkywaystars]Don't buy a brand new car, one or two years second hand is fine because cars lose their value as soon as you've bought it. Our car was 1 year old, had only 1 owner and cost us £10k less buying it 12 months later. Not had a problem with it so far.

Car, insurance & driving lessons £10k max

Replace your household goods/furniture but don't spend the lot in one go. £5k max shop around & IKEA is good for sofas & beds

Put £15k in premium bonds for a rainy day emergency fund or a private pension. £15k

Put £5k each in a stocks & shares ISA for your grandchildren. =£10k will come in handy for university/training or house deposits later. Make sure it's in their names.
money saving expert

Grand total = £40k

The premium bonds can be cashed in later for a holiday when it's safe to travel. You've just locked it away so you don't fritter it away on rubbish. You could also win a bonus in their monthly prize draw. www.nsandi.com/products/premium-bonds[/quote]
She is trying to keep claiming Universal credit whilst inheriting 40 K !! You cannot just put money into the kids names and premium bonds ! her Uc would stop straight away. You cannot give money away - it is deprivation of capital.

Milkywaystars · 01/05/2021 15:58

Or you could buy your sister a ticket to come and see you so you don't get into trouble with the authorities. You could book a cottage somewhere in the UK so you can have a change of scenery.

Milkywaystars · 01/05/2021 16:01

She is allowed upto £16k savings isn't she? Or am I reading it wrong?

Babyroobs · 01/05/2021 16:02

@Milkywaystars

She is allowed upto £16k savings isn't she? Or am I reading it wrong?
Yes but it will reduce her Uc each month, but she can't just give money away to her grandkids ? It would be different if they had been left money directly in the will but that doesn't sound like it's the case.
Bul21ia · 01/05/2021 16:07

I wouldn’t buy a new car OP. You will be a first time driver.

I would sort the house for things you need though and buy them outright.

Babyroobs · 01/05/2021 16:08

You also need to factor in that if you spend all the inheritance, the car insurance could be pretty high for the first few years, so perhaps put some aside to cover that?

Milkywaystars · 01/05/2021 16:10

Ah OK. In that case put money in a pre paid funeral plan for yourself so it's paid for.

Put some money in a savings pot to pay for the boiler/car service bills etc.

rainbowthoughts · 01/05/2021 16:11

Haha OP. Nice one, but no.

You have to declare the money and will be expected to fund your own life for a while. You can't just go splash out on a brand new Qashqai while UC pays your rent Hmm

Babyroobs · 01/05/2021 16:13

@rainbowthoughts

Haha OP. Nice one, but no.

You have to declare the money and will be expected to fund your own life for a while. You can't just go splash out on a brand new Qashqai while UC pays your rent Hmm

Totally agree with this. Reasonable spending is allowed, doing vital home repairs, replacing worn out furniture, reasonable spending on a holiday, but some of these things that people are suggesting would just not be allowed and op would risk being treated as if she still had the money and could completely be left high and dry !!
Babyroobs · 01/05/2021 16:15

@rainbowthoughts

Haha OP. Nice one, but no.

You have to declare the money and will be expected to fund your own life for a while. You can't just go splash out on a brand new Qashqai while UC pays your rent Hmm

Doesn't exactly sound like she's living the life of riley though does it with three grandchildren to bring up ? Op could be saving the state a fortune if the alternative for the children was going into care or something. And if op had inherited this ten years later when her grandkids had flown the nest, it likely wouldn't matter and she could spend it on whatever she likes without having to worry ?
Starstruck2021 · 01/05/2021 16:18

How does the DWP know about an inheritance?

Milkywaystars · 01/05/2021 16:20

It's such a shame that people who are in need of a small cash injection to make their lives better are penalised. Whereas there seems to be money in the public purse for £800 rolls of wallpaper for No 10 Downing St.

Babyroobs · 01/05/2021 16:21

@Starstruck2021

How does the DWP know about an inheritance?
I may be wrong but I think solicitors are duty bound to report it to DWP ? they will know one way or the other, there is no way of hiding it.
Babyroobs · 01/05/2021 16:21

@Milkywaystars

It's such a shame that people who are in need of a small cash injection to make their lives better are penalised. Whereas there seems to be money in the public purse for £800 rolls of wallpaper for No 10 Downing St.
Agree - it's crap.