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.

The benefits office will expect her to declare it so they can stop paying her until she runs out

Most lottery winners no matter what their circumstances blow the lot within a couple of years don’t they? Nobody values but they haven’t worked for it’s entirely human nature.
I suppose you could apply that to the benefits money as well

How very dare her multi-property owning landlord provide her with a postcode from which to win the post code lottery! Seriously ridiculous, entitled moaning.

This is incorrect. If she blows the lot then she may very well be penalised under 'Deprivation of Capital' decision. Buying a home, is seen as a necessary improvement to life, she can also apply for mortgage support via UC. There are also part buy, part rent schemes. If she has gotten this information from the internet, then she is more than likely going off of incorrect information - Even from Gov.UK, if it hasn't been updated. It's my job to know this information (without giving too much away). Please tell her to speak with UC, before she blows the lot. If she already has 😬...

She cant spaff the lot as quickly as possible. The dwp would view this as deprivation of capital. Not allowed under dwp rules

This

And if she spaffs it and the dwp consider it deprivation - she will not qualify for benefits for quite some time

People are not allowed to come into large sums of money and then blow it to get benefits

There was a guy in Scotland who blew around 80k and he was denied benefits for that reason

If its not declared its fraud. I had to stop claiming a few years ago because I had money over 16k.

outright? for 125k? where?

Can you claim top up benefits if you have 125k in the bank (from any source)?

They might not. She needs to find out if she can spend it all at once and stay on benefits

I have benefits and a council house she can stop claiming benefits continue to live in her house and get a good job and work her way out I have £75 in my bank till end of the month I’d do anything to that money. She’s a dick.

I believe there's only a disregard if you sell property and buy another within 6 months. If I'm wrong someone can correct me

But she could end up with a very small / no mortgage if she bought a property. We aren't talking about a massive house here but it would mean she'd have something to leave her kids.

The down side is should she need care in her old age then they'd end up with nothing anyway so she might be as well to have a nice car and a few good holidays.

Honestly things like that don't really encourage, people on the cusp of benefits to get off benefits. The system is almost designed to keep the poor down.

The arm of DWP is long, they do find out if significant sums have hit your bank account.
My MIL on pension credit received £15k inheritance from her estranged late husband. This would take her over the £10k threshold for pension credit. But she knew she was going to use £6k for all singing and dancing hearing aids and some dental work that fell outside of the NHS's remit. She spoke to DWP they were fine with those expenses and she just had to send them copies of the invoices. Had she gone on a 2 month cruise or given some money away, it would have been considered deprivation of capital.
Look up Daniel Millar, a grandfather on benefits who spaffed his £80k lottery winnings in 2024. DWP found out.

Imagine getting upset because the dwp won't pay a mortgage. Talk about entitled

Yeah that guy from Motherwell

I’m sorry but this isn’t correct - she needs to get a financial advisor asap

Where I live you could buy a small house outright for less than that. Would that be a possibility?
If she “spaffs “ the money, it’ll be treated as deprivation of capital and she’ll lose benefit anyway - as she should! Why should she be supported through benefits when she can support herself?

Some places in the West of Scotland. North of England

Or she could just use the money to live off until it runs out and save taxpayers the £125 000, which would be nice.

The dwp can and do spot check bank accounts too.

Thats what the dwp expects

Benefits must be very generous if someone can afford to throw away £125k just to stay on benefits.

If the money is already in the bank she has to declare it