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.

I think if it was a pensioner the advice would be the same buy a flat so you have something to leave your kids.

And actually lots of pensioners esp those in private rents would jump at the chance of a small privately owned property. Take housing costs out the equation.

Then blow the rest on holiday or treating the family.

A go fund me would certainly help her plight.

Earlier today when shopping in Manchester I decided to dance and sing on Market Street to try and raise some cash for OP's friend. I spent a good two hours belting out songs where I knew most of the lyrics and just winged the rest. 😊

I'm not a great singer (or dancer) but I managed to raise £14.62 and a euro someone had put in my hat by mistake.

If we all do stuff like this then she might just get through this. I am just one woman and can't do it all on my own.

Every little helps.

The problem is though - if the Op or anyone else bought a flat for less than 125k the rest of the money would be treated as savings and their benefits would stop if they had over 16k in the bank. Under 16k. You've to make that last as long as you can

Let's say the OP bought a flat for 110k and had 15k left. If she spent the other 15k in three months - they could still count that as deprivation of capital

If there's money left over after a flat sale the dwp want to see people living on that money as long as the person can. If you don't - they'll view that you are trying to get your savings back down to 6k to get full benefits again

They ask you to record your income every month from when you have 16k to 6k so they can make deductions from your benefits

A big spend that isn't on something like house renovations would probably cause issues. Giving large sums of cash to family would unless you could show that you are in debt to them

If the rules allow it she's better spending it on property but if it is shared ownership she'll be liable for maintenance costs as well at some point - or if things like a boiler breaks

She would be better not spending all of it in my view and leaving some cash in the bank if she is going to go down the shared ownership route

This is bonkers.

If winning 125K is such a hassle for her, could she just not claim the prize and let it go unclaimed?

I think it goes in your bank when you win. Some people near me won it a few years ago.

If she does consider buying a shared-ownership house she could get help and advice from her local council’s housing advice centre. She needs to lay her cards on the table, explaining her big win and her benefits position, no trying to hide anything. It might be life-changing for her.

No harm finding out before wasting her good luck.

“She's also scared to give up her full time job”

Most of you are missing one significant issue. This woman works full-time to support her family, but her salary isn’t enough to cover their basic living expenses so she gets some Universal Credit to fill the gap. If her income was higher, a true living wage, and she didn’t need Universal Credit, this £125k would be a wonderful thing, either the deposit on a home, or a trust for each child and savings to fall back on when they needed it. But, because of poverty wages this lottery win is going to make very little real difference to her life. This is frustrating, and infuriating.

If you want something to leave your kids, whack in a good high level insurance policy that you pay monthly for ! And stick £10k each away for them if you aren’t buying property - the problem is that level will only buy you something a bit grim in vast swathes of the country ( if anything) or shared ownership and we can’t presume the person in question lives or wants to live or is prepared to move to the areas that are that cheap in order to just own or may not have any decent shared ownership options where they live - I would say the same with plenty of pensioners too , especially if they have social housing already - I have a friend who inherited £168k down here in Bath but had social housing ( and quite nice it is too) - they were not on benefits but only in early 60s, so gave 2 kids £40k each now , they paid off debt, bought an 18 month old good car and are using rest to just give themselves a cushion and an extra £300 a month till state pension kicks in - the kids effectively have had their inheritance and the parents still living somewhere perfectly nice that they like.

But, Crikeyalmighty, is your friend on benefits? If not, their money is theirs to dispose of as they wish, but the spending of people on benefits is always under scrutiny, it all has to be transparent, and giving your children £10,000 each etc might well be considered to be disposal of assets in order to pretend you’re financially worse off than you actually are.

I'm not missing that at all. I'm on UC and I know what the rules are re savings or cash that you have won . It will make a difference to her life if she manages to buy property and if she doesn't then she'll still have a very decent income to live off

Lots of people are in the same position. You know when you claim benefits what the rules are around having money in the bank and she has to make a decision. Does she buy property or come off benefits and live off the money

She probably gets a decent amount of money for her kids and not that much of a top up for herself if she's working 32 hours a week although obviously the fact that she only works term time reduces her yearly earnings

She'll be getting some of her rent paid as well

If this happened to me tomorrow - I would be in the same position. I would have to buy property or come off UC. I wouldn't have as much to lose as I don't have kids but I would still need to make that decision

It's not the same when people are on universal credit. You can't just give large sums of cash to your kids or it's deprivation. That man from Motherwell did it and he was over 7 years without benefits apart from Pip and his wife had carers allowance

Btw. I have no idea where the OPs friend lives. And I absolutely don't think she has to relocate but 125k in some areas will buy you a lot more than grim

As I said in previous posts my brother bought a two bedroomed flat in the West of Scotland a couple of years ago for 100k and his flat is stunning. He would have paid quite a bit less if it wasn't almost fully furnished

That's not what the OPs friend needs clearly but people don't all live in horrible flats or houses just because they happen to be cheaper than some places in the south

My mums ex council house is worth around 130k now - if she lived in London it would be worth five times as much easily. People are paying over the odds for housing in a lot of places in the UK. Her friends daughter just bought a two bedroomed house a couple of months ago for 130k in the same development my mum lives in. I don't think they are worth that - but they aren't grim either

No the OP shouldn't need to move but she needs to make decisions on her next steps

I know all of this. I work and get UC.

But, like I said, the real kicker is that her salary is not enough to live on, meaning she needs UC to survive. This is the real problem. Anyone who works full time should be earning enough to live on, no job should be so poorly paid that we need UC. She’s a lone parent (as am I) where is the financial support from the father of her children?

It’s insane that this lottery win isn’t a cherry on the top of her life, but is actually causing stress.

My father paid a pittance for me my entire life and my brothers dad was even worse. There are men who manipulate the system so that their kids get very little

Indeed. The father of my children paid only what the CMS dictated and stopped as soon as he could.

Again, the point I’m making is that the system that allows this situation to occur is the real problem.

1. she probably doesn't work FT, TA hours rarely are, one reason they are low paid (as well as a low hourly rate)
2. any contribution from the children's father makes no difference to any benefits received. Whether it's £20 or £2000 a month, UC would be the same.

“any contribution from the children's father makes no difference to any benefits received. Whether it's £20 or £2000 a month, UC would be the same.”

Yes, but if she lost her UC due to the lottery winnings but got enough maintenance from the father of her children, the loss of the UC wouldn’t be a big deal. Again, this is about it being ridiculous that she’s working and not able to live on her income because the wages are so shitty.

Yes. But someone can't win 125k and stay on benefits unless they buy property. That's the bottom line

I don't think I'm speaking out of turn when I say she would happily pay her mortgage if she could afford to.

My rant in my OP was when shared ownership hadn't been a consideration.

I was then of the thought that she'd little option but to spaff this life changing amount on living rather than be able to invest it in property, then end up back on benefits after her winnings had gone. The government would then return to paying a private landlord to continue to get rich.

Let's not discuss the contribution the children's father makes to their upbringing, both financially (£78pm) or time (zero).

She wants this money to lift her and her family to be off benefits for the rest of her life, but without a start a business drive, I'm not sure it will be. She's really not keen on studying, as she doesn't feel that will be a success. She said she's not built that way.

So. She gets a wage. And a UC top up. Rent paid. And money from the dad. Money from the dwp for her kids too? Ok. Probably not enough money from the dad but money all the same.

Lots of women get a pittance for their kids in maintenance even if the child support agency are involved. Like a quid a week.

So she has enough money to pay a mortgage on a house? So what was the point of this thread

The 125k won't get her off benefits for the rest of her life. Once more - she will have to buy a property or come off benefits - those are the rules. For everyone.

125k is not a life changing amount these days - particularly if you are on benefits.

Your friend has a wage and her rent paid and money from her kids dad and child element for her kids and a UC top up and 125k

She either buys a house or comes off Uc. Those are the rules.

She can also start a business on UC but you get 12 months to make it work or the min income floor applies

Sorry. But you've been told the rules and I'm struggling to find sympathy for someone who has just won 125k when other people can't afford to eat.

Now that the two child cap has been lifted she will get around 900 pounds a month for her three kids and I completely get that kids are expensive

But she gets a wage. A UC top up. Money for her kids and her rent paid or most of it

I completely get why she wants to stay on benefits - but why can't she afford a mortgage if she's just won 125k and gets wages and a top up. Money for her kids from the dwp and child maintenance on top?

If she does start a business she's going to have to tell the dwp as well

Your mate has around 2.2 k a month at least coming in from wages. Child maintenance child element and the top up if not more - so why couldn't she pay a mortgage if she bought a flat - other people do it.

Sorry but thinking 125k is going to last her the rest of her life is pie in the sky

And see to the next person that tells me I need to scrape myself up off a floor. Or that I resent single parents trying to get by

My mum worked full time back in the day and got two quid a week from my dad. Nothing from my brothers dad. She worked full time but we still struggled. And my dad had nothing to do with me either from when I was three. My brothers dad was even worse - emigrated and paid her nothing ever

That's life. I wish there had been better top ups back in the day, there were none - because my mum might not have struggled quite so much

I need to step out of here because I'm really uncomfortable with someone trying to game the system and being called names to boot on here by someone who wrongly thinks I'm trying to do single parents down

Your mate doesn't know she's born. Seriously doesn't

Op i really hope she is able to get it into property especially as she is private renting

When you put it like that the OP's friend is getting something like £3000pcm most of it tax free. ....and that assumes no other benefits at all.

This reminds me of the Daily Mirror article where they interviewed single parents after the 2 child cap was lifted. Every single one of them (if you grossed the money up) would have been a higher rate tax payer if their money was earned rather than benefits. One them was on the equivalent of £133k pa. ...and that's the Mirror which is presumably pro-benefits.

The cap has not been lifted yet. Just more bile from the Mirror.
Unless they have 10 kids, all disabled, they wont be getting that much. It is impossible.