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.

She now has £125k in savings. She shouldn’t be claiming benefits.

This is why we all work hard and pay taxes? This post has to be a wind up.

It’s not. Op is still going on about her poor friend while we live pay check to pay check and have all earnings stripped to pay tax to support her friend to work part time

I just Googled, "If you are on UC and get an inheritance, can you use that money to buy a house?"

It appears you can as it would be exempt from capital, but it does say to seek advice on the timing of the purchase. She needs to contact the DWP and get their response in writing, and make sure it comes from a Decision Maker. I used to be very involved in the benefit system and on at least three occasions, I have received completely the wrong advice from DWP employees.

Yes there are clear cut rules on what deprivation is

Wow.

so your friend would try and spend her money quickly rather than relinquish her benefits ?
Words fail me..

She's got no self esteem because she doesn't have her maths GCSE - loads of people don't have a maths GCSE. Or get it as an adult. I know people who have zero qualifications who are doing OU degrees.

Seriously - why is this thread supposed to be about feeling sorry for someone who has just won 125k but wants to spend the lot of it to keep the lifestyle she has

There are clear cut rules on deprivation of capital. More than one person has said on here if she goes to reddit she can actually talk to people who work in the dwp and ask their advice on the issue

Why are you constantly making snide digs at people on here every time you post? Why are you so invested in people's opinions if this is about your friend?

The point is, its a sum that should be used to increase her prospects but the way the benefits system works, its going to end up going on everyday living for a few years before she ends up back at square one.

There is something sad about that.
Its not called the benefits trap for nothing

I don't really think this is an example of the benefits trap to be fair. If she can buy a house, even part ownership she'll be no worse off. It's a far different situation than someone who earns just over the threshold to get benefits at all.

She can't just keep it in the bank or blow it and have the same lifestyle and that seems to be what she wants

Surely the way she’d afford it is that she wouldn’t bother with a mortgage at all and just buy her 25% share outright?

Then use the balance of her funds frugally - including paying the rent, possibly retraining and when the time came in however many years deemed acceptable by DWP she’d get help for her rent element via UC?

OP’s friend should investigate all options. This could be life changing for her. It’s the sort of sum of money that could change my life!

She 100% can use the £125K for a deposit for a home she will live in.

She’s built her life around benefits & doesn’t want to change this. This is why having ‘set and forget’ benefits for life or until a child is 18 isn’t a good idea. In her position I’d be investing it to pay me dividends & looking for a better paying job.

She doesn't want to pay a mortgage and the dwp won't pay it

Benefits aren’t about increasing prospects. They’re about ensuring people facing hard times don’t starve. The fact she’s prepared to fritter away that amount of money just goes to show you could give her any amount of money £40 or £4 million, and she’d blow it. Fuck my taxes subsidising that.

Depending on where you live in the country there are lots of options to buy a shared ownership house. This one is £110k for a 40% share, she would still get UC so could pay the rent and bills

https://www.rightmove.co.uk/properties/172300127

She also needs to factor in the cost of buying a property - even if it's part owned. She'll have to spend some of the 125k on legal fees

Imagine the horror of having to use your own money to cover your day to day costs.

Shocking. That would be living like one of those poor unfortunates who work to support themselves (and others).

Don’t do shared ownership it’s a selling nightmare

No, I wouldn’t touch that with a barge pole.

The OPs friend does work

She will also likely be responsible for maintainance costs if she does shared ownership. So she'll be treated as an owner for that purpose. So anything that needs done inside the property and if there's any external works that need done - she'll have to pay for.

The OPs friend has a full time job.

You mean she'd end up having to pay for her living costs like other people must, now that she has the means to? What a shocking notion.

No she doesn't, she's a TA. and even if she did it clearly didn't cover her expenses.

You can have a mortgage while on UC definitely, as I know people that have one. She won't get help though,
as in money towards it. How about getting some expert financial help? The UC teams are clueless,so don't ask them for advice.