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How do UC work out how long an amount of inheritance should last before you can claim again?

27 replies

moneyissueproblem · 21/09/2024 10:25

Is there a formula they use to work out amount of inheritance/ family size / circumstances as to how long any lump sum should last? As obviously I’d have to come off UC as would have more than the amount allowed in savings but it wouldn’t actually last me that long and then I’d need to reclaim UC - but how do they work out how long it’s meant to last and when can you put in a new claim ?

OP posts:
Theredfoxfliesatmidnight · 21/09/2024 13:39

My understanding is that there's no set formula, and they don't expect you to spend the same as you would on UC, as of course you would spend some money on things you couldn't have afforded before. Generally if you're getting UC, you're not rolling in money, so it would be expected that you would buy some things you might want or need.

As you say they are looking for deprivation of assets, that's all. So making a huge gift (or possibly really any gift of money) will raise questions. Which is fair - why should you be giving money away if you are expecting to be partially supported by the state?

Also blowing huge amounts of money on crazy things. Why have you bought an expensive sports car (as opposed to a normal, or even nicer-than-you-did-have car) - you would need to justify these kind of "so extravagant it's silly" purchases. Otherwise it's fine.

My advice is based on the fact that many people I know have had Universal Credit reviews recently, and these reviews include a fairly lengthy telephone interview. (There are lots of reviews going on at the moment apparently.) They say that these were the things the investigators were concerned about; other spending, even quite high levels of spending, were ignored as you have the right to do what you want with your own money.

So my understanding from this is, so long as you are not spending money TO get UC, so long as you're not hiding money by eg lending it to relatives, so long as you're not making crazy purchases eg the sports car, you're fine.

Polyethyl · 21/09/2024 15:44

What an interesting question. So from the sound of these answers you can buy a 2nd hand ford fiesta. Book a weeks holiday in Devon and buy a dishwasher. For example.
How unusually humane for a government system.

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