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.

Beware, my experience of financial advisors is that they have no, or very litte, knowledge of the benefits system. They may well advise, but she also needs to get separate advice about the benefits system. Citizens Advice are a good starting point.

In a world where fucking Johnson has us buy his curtains and wallpaper, and rapist trump starts wars for oil money, this is such bullshit.

You are right.

If you are on UC, you have to justify all your spending. If you come off benefits, and maybe will go back on them due to disability etc... you have to justify the spending you had in the interim, despite it being your own money.

It is stupid.

Yeah right?

I'd like to see the forensic lens of universal credit assessment applied to the actual gargantuan mis-spending of public funds we've seen in even the last twenty years from the treasury, never mind the last forty. Eat out to help out, blowback new build deposits, stamp duty holidays, HS2!, the lot. Claw that back, you fuckers, then once you're done come at me for getting a new fridge freezer instead of going to the community furniture store. Cunts.

It happened to me too. I am physically disabled and was in receipt of Income-based ESA. I then received an inheritance, so was able to come off benefits. After about a year, my savings had gone down to less than £15K, so I wanted to claim again. My claim had to be reviewed by a Complex Decision Maker. I then kept them updated every few months until my savings dwindled to less than £6K. I was able to pay off my mortgage though (£22K), but I had to justify myself.

Am I write in thinking in - no matter how much you win/ recieve as a gift/ inheritance - you need to declare it with DWP if your on UC even if you wish to use the money to buy a place? (not me)

She absolutely could buy a house and it would not be seen as deprivation of capital if it was a house she lives in. Where we live you can buy a 3 bed older terrace outright for that money. Elsewhere it might be a substantial mortgage. Anyone suggesting a flat to rent out - that’s not a good idea if wanting to stay in benefits. The flat would be classed as an asset/.savings over £16k so benefi would stop. But you can own a house and receive UC - just not the rent aspect. Putting money away for children would be classed as deprivation of capital so that wouldn’t help with the benefits side of thing. Buying a car is fine as is paying off debt. Shared ownership homes are an option and UC would pay the rent part of the shared ownership. Spending it on random other stuff does mean deprivation of capital if done quickly as UC would want to see receipts and might still stop benefits. Living on it in general for a period would be advised and reclaiming benefits once under £16k. On tax credits this would have been allowed to be kept as savings and also allowed to have set up savings for kids etc. transition to UC whilst having the money would for a 12 month grace period for savings . But if already UC it just has to be declared.

Yes.

Yes all savings need to be declared. Purchases such as buying a house, buying a sensible car, paying off debts are allowed. They can ask to see proof of spending.Edited to add you can have below £6k in savings without it effecting benefits. £6-16k you can have but get a deduction from benefits of something like £4.25 for every £500 you have. Over £16k closes benefit clam.

You didn't, but someone else did.

Hence me telling people to scrape themselves off the floor as some posters on this thread are vile. Sad to see your report was accepted, but I've come to expect it from MN.

There is such an assumption in this thread that everyone can study to get a career - I don't know if my friend has it in her, but a few GCSEs to her name, not including maths, mean the road ahead to a profession is long and hard, assuming she's successful.

Thanks for the tip about financial advisors @BooneyBeautiful - the "experts" on this thread with their conflicting advice lend weight to what you've posted. I'll message her to do some checks before her appointment.

Financial advisors won’t be helpful. They don’t know the ins and outs of benefits. They will also charge a lot of money to help invest. I had to get financial advice once when I was on tax credits and had an inheritance and aware I would be made to transition to UC at some point.

And the people advising you can’t own a house - you can!! You just don’t get mortgage paid like you would your rent. You get a higher personal allowance though. You just can’t own a house you won’t live in.

I've organised a candle-lit vigil for OP's friend in my local town this Saturday.

If everyone else could also organise one I think we might just be able to raise enough awareness about the horrific plight OP's friend is suffering.

💐

Thank you.

That's really kind of you. 🙏🏼

#thoughtsandprayers

She doesn't need a career, just to work more hours.
I worked 50 hour weeks when mine were tiny. I had a disability and was a single mum.

If you are going to sponge off the state then at some point it will catch up with you, as it has for your friend. It she was self sufficient she could enjoy her windfall

Pretty sure other people would have reported you as well. Why did you post if you are going to make snide comments about "experts". You can do a degree at the ou with zero qualifications btw.

You're the person that said your mate was going to blow the lot.

People are making assumptions, because you didn't give any detail about her circumstances in your OP or subsequent posts - just expected everyone to sympathise.

People were mentioning education/qualifications, because this is a use of the money that won't be regarded as - your word - spaffing by DWP. If she's holding down a TA job, then she absolutely can study for qualifications. The road is long and hard for anyone who wants to better their life. Not many ordinary people get a £125k leg up to help them on their way.

Agree with this, esp the last two sentences.

Your friend could afford to not work for some time. If they wanted to study this would be a great opportunity. Lots of people study alongside working full time. It’s such a gift in so many ways. If she got on the TA course she must have some skills or qualifications going for her.

Completely agree, I think some people over complicating this by advising she needs to go
to a financial advisor, plus people seem to completely ignorant of all
the help that is already available to single parents on a low income (without a windfall) if they wanted to study, day to day living expenses etc. Having been a single parent myself the biggest barrier to improving day to day quality of life and long term security was being able
to get on the property ladder. Those with really good quality subsidised secure housing or their own houses without a large mortgage I know are all relatively comfortable. This windfall would help massively with doing so (or even paying off a mortgage if she already owns) and as a previous poster pointed out, this shouldn’t reduce her current benefits (except for entitlement to the housing element of UC)
If she can get a mortgage on the remaining amount she needs to buy a house then she might be slightly worse off financially for now than having her rent covered by UC but if viable (which is for many single parents without a large mortgage) then would definitely go for that option

She needs to check that she would still be able to claim UC if she blows the lot as I read someone who did and then wasn’t allowed to claim UC after he blew it all. It was more than she won though.

look at shared ownership as they pay for the part rent part. Getting housing sorted should be priority as landlord can sell up at any point.

look at a private pension like a SIPP as she won’t be working forever and still have high bills to pay using state pension

If it’s the same one I read it was 80k.

As a fully subscribed member of the ‘alarm clock’ generation, I am appalled that someone could hold that much money, and sniff around trying to shield it in a manner that means they retain state help that they do not need. It is insulting to those whom a) genuinely need state support; and b) the hard working taxpayer should payer who funds the welfare system.

Obvs not 🙄

She could

They will not necessarily pay for all the part rent part depending on how much it is