Sad for my friends £125k lottery win.

[Sogfree]

£125k win on the postcode lottery.

Single mum to 3 children (all primary age). Works as a TA, so receiving benefits to top up her income.

She would like to use her winnings for a deposit on a house. But due to the benefits rules not being allowed to pay a mortgage, she can't buy a property.

So she's going to spaff the entire lot as quick as she can, and the government will continue to pay rent to a multi property owner and make them richer.

The only asset she'll get to keep is a newer car - not anything fancy as she knows she won't be able to afford the insurance/fuel once the winnings run out.

Her one chance of breaking free of a life on benefits and she's got to throw it away. It feels wrong.

2 bed flats for sale in St Leonards on Sea in the expensive South East on the sea front no less

Of course she needs bigger with 3 kids but should be able to find somewhere less expensive

I'm taking this with a huge pinch of Saxa.

I presume she gets her rent paid and doesn't want to pay rent

Aye it all sounds odd

Looks like he’s been on benefits for years, but he managed to spend 80k in 2 weeks!

What an idiot.

Between this guy and the OP’s friend, there doesn’t appear to be much appreciation or respect for money and its value.

I actually think this is a goady thread - but on the off chance it’s genuine, besides shared ownership ( which is usually newish properties) she could also look at Heylo your move, which is shared ownership on open market -whereby you have to put 25% minimum down ‘in cash ( no mortgage) and pay rent on the remainder - it goes up to quite high limits too but depends on income, but if in quite a cheap area could probably easily put 25% down using most of the cash - and then if under £16000 left still get help on the rental aspect - this can only be freehold properties, hence not for flats in London etc and you can’t own another property - it’s a great scheme if working in situations like divorce or inheritances where you can’t buy outright or get sufficient mortgages

And he was left living off Pip for over 7 years as a result

Sorry for all the nasty replies you have had from people who don't get it. I had to stop after one page of it. I am glad there were some useful suggestions in there too.

She wants to buy a house but the system won’t let her because it’s shit. If she can’t buy a house which is a life changing investment, what else that’s life changing for her situation can she really do? Yes she can put some in savings for her children’s future, but she is eventually going to return to benefits once it gets to under £16k. No point feeling sad or angry about it as an outsider.

The "system" WILL let her. Read a few more posts and enlighten yourself

Isn't that what everyone does, everyone has to live on their own resources. Benefits only come into it if for some reason someone doesn't have enough income or capital to live on. I'm sure lots of people would love to get benefits on top of their other money.

I don't know how much she earns but investing the money would increase her income and it might take quite a long time to need benefits again, if she just drew on the capital as needed. The children would be bigger then and she would be able to get a more full time job. £125k drawn down at say £10k a year would take 12 years!

She needs to do some sums. She would still have her own earnings without the benefits. Even if she’s losing a few thousand a month in benefits she can easily live on this money for quite a while!

She could use some of it to get some training and get a higher paying job, pay for childcare to work more hours, she could pay off any debts she has, she could buy outright a small house in a cheaper area, she could part own a property.. there are sensible options. She needs to get some advice from someone who knows what they’re talking about. Even ChatGPT would be a good start.

She is very lucky to have s£125000 lottery win. Of course with that amount of money, if she saved it or used to cover her housing costs.
She would be in the same position as someone who had s£125000 inheritance or if someone had a mortgage, lost their job and had £125000 savings in the bank.
I am at a loss to understand why you think she should keep this money and still receive help with paying a mortgage /not loose her housing benefit
Housing benefit is a safety net, which I definitely approve of, so that people on benefits/top up benefits can maintain a home ...albeit rented. Not a once you've got it entitlement that you are entitled to keep regardless of any extra money which comes your way.
If a home owner loses his/her job society won't pay the mortgage. If you have £125000 savings you have to pay it out of that. If it goes down to a certain amount £16000 (I think)benefits will pay the interest ...not the capital. If this isn't enough to facilitate keeping the house then you lose the house.
Very many working people, in jobs just like your friend, love with anxiety about losing their jobs and therefore also their homes all the time. Some cut back, do without, sacrifice
, to Dave in case this happens to them but could never dream of getting to a place where they have £120000 in savings to help out of the worst happens.
I your friend has been fortunate enough to get this amount through a lucky win, congratulations to her, but why would this mean she doesn't lose the same amount of the safety net benefits as anybody else lucky enough to have £125000 on the bank?

I hope your friend find a a way to spend or invest it wisely rather than splurging it.

I agree with previous PP that she should speak to a financial advisor. Shared buying sounds like a good option. Also Skipton are offering mortgages based on rental payment records.

I do feel sorry for your friend (in a way) because it should be a means to break out of poverty/rentals. I am sure there would be a way to manipulate the system to her advantage. She was foolish to tell everyone she had won. I do postcode lottery and would be keeping the news to myself. For big wins they usually offer free financial advice.

There are various things you can spend the money on without it being deprivation of assetts. You can buy a modest family car. You can pay off all debts, loans, bills and credit cards. You can spend it on essental household goods or repairs.

The dwp would still want to see what everything had been spent on. Paying off lots of debt could be considered deprivation

There are few ways to manipulate the system. As soon as she gets the money it must be declared to the dwp

No - paying off debt is not deprivation so long as you can prove it. For loans and credit cards and outstanding bills there would be receipts and bank or card statements.

Ignore the gif. Accident

She can buy a house, whats wrong with you?

It's exactly this. She doesn't want to pay rent, and she doesn't want to have to pay a mortgage by actually utilising her winnings to buy. She wants to remain free of the burden of paying for where she lives. This is where safety net meets entitlement.

It can depend who the debt is owed to ie family and friends

I can't imagine winning 125k and trying to blow it to stay on benefits

Some people really can't help themselves. You can throw money at them left, right and centre and they still make terrible decisions. If what you say is true, she's a clear example of an idiot with zero ability to plan for the future.

Loads of places even in the south east if she would buy a flat

Even where I am (south coast), she could buy a 2 bed flat outright, obviously a bit small for 3 kids but places in Essex, Midlands, North East, North West, some places in the south West

Im frequently baffled by posters who really dont know that there are places up and down the country with affordable housing

Exactly...it's supposed to be a lifeline for people who are struggling, not permanent free money