To be gutted at losing my benefit

[Clappingforjoy]

I am going to inherit some money from sale of parents house and have told universal credit to close my claim but I'm gutted about it.
I have always struggled never had 2 Penny's to rub together and it just so happens I will go over the 16000 mark with this money and know i must sound greedy but my income is very low and i am scared this money will all go on living costs.

LH1987 I agree but not surprised at all the posters defending the OP. The majority on here are Labour voters who have never quite got the idea that adults should be self sufficient, and those who can't being supported by benefits. They appear to think the Government (taxpayers) should pay for everything.

@BernadetteRostankowskiWolowitz if you thought the OP might get £1k a month income from benefits that would last 26 months. Not 26 years. 26 months is just over 2 years.

The OP has updated that she receives £300 a month. So £26K will last around 7 years. If trickled in like an income top up.

@Mycastle - why is the government subsidizing landlords' investments? small or otherwise? Thats a clear transfer of public cash into private hands. Rather than building social housing and therefore keeping public cash public

Why don’t you spend it on improving your health and education (enabling you to work more hours), improving your credit score (enabling you to invest in property), then claim when you’re below the threshold again, if you need to?

I think it’s very U to want to stash the inheritance and continue to claim benefits. Your parents may have wanted you to have some ‘security’ but with a poor credit score you can’t get onto the property ladder.

There are people who work 6 days a week in high stress jobs, who pay hefty taxes, and are not entitled to benefits or able to save. Imagine half your income was taken in tax, how would you feel about that?

in this day and age it's not a life changing amount

Any amount can be a life changing amount if it's used well. Let alone 26k.

"I just want financial security"

Doesn't everyone? I don't have as much savings as you and I don't get 1 penny in benefits. It's not up to the state to make you financially secure.

SciFiScream

Jesus I've had more wine than I thought haha! How embarassing.

I can understand what you mean, and why you might feel it as a loss. But the thing is, benefits are supposed to help those who need it. Why should the government (or other taxpayers) fork out to provide you with money to pay for your housing and living expenses when you have money lying in the bank? Think of it like that. It's like going to a soup kitchen for free food when you've got food in the cupboard at home.

You've had lots of nice ideas here about how you can bring yourself under the cap if you choose to do so. I would recommend keeping just under £16,000 in savings, and then updating your house with anything you've been thinking you might need, so like decorating, get the garden/drive done, get a new mattress - it's not a waste, it's things you need.

But the thought that it's unfair that you 'lose' your benefit when you have so much in savings is a bit of a rubbish attitude in my opinion.

OP what you need to check is the deprivation of capital rules. So basically it cannot be obvious you have disposed of £10,000 to get under the 16k capital
Limit of UC.

If you spend some of the money to get under 16k, it has to be spent on something classed as reasonable costs.

medium.com/adviser/a-guide-to-deprivation-of-capital-income-3209a4b50720

@Crankley - you are already paying for everything - your cash is already being spent on helping people but rather than helping the 'undeserving' poor it's going to help the deserving rich

the current policy subsidizes large companies, protects private landlords' investments etc. But you think that's reasonable. Helping a person who is unwell and can only work part-time is too much though

It's not that 'we' are labour voters is that some people have a little bit more knowledge of politics and economics - beyond the 'ah there is a poor person getting something for free lets knock them down

Sounds fine. Why shouldn't the tax payer support you so you don't need to spend any of your own money? Jesus fucking Christ.

Some very good advice here and I will take heed.
I did think about the mobile home idea to go rent free but it's the bloody ground rent.

[quote Waxonwaxoff0]@Eckhart

The people I am calling horrible and bitter are the ones coming out with the classic "taxpayers money" "free money" "lifestyle choice" comments. They are being nasty. Those are bitter comments.[/quote]
But why? It is taxpayers money after all. Intended for those in need. Imagine we have a system allowing 26k savings that don't affect the amount of benefits one can claim.

Anyone, I repeat anyone can be affected by job loss and ill health and may suddenly lose their property and what not and go on UC. I really don't think people are being horrible by pointing out the obvious.

It is shit for OP. Everyone has their own shit to deal with through no fault of their own. We don't know what shit there is to come. I think most people on UC don't want to be on UC. They just don't find a way out of it because they are ill or have all sorts of other issues. OP is not a unique case. I'm all for society supporting those who need support, but 26k in the bank and claiming UC....I would find that strange.

@Crankley

Precisely ApplePie86 I wonder how many of the taxpayers who pay for benefits have 26k sitting in their bank?

This. Never claimed benefits in my life, hope I never have to

26k of savings is not what average working people have so why should they subsidise?

Incidentally, you mention your son will get something... I don't know if he is still a child but it's possible (and straightforward) to start a pension for a child - investing that same amount up to £2880 each year and they receive the same tax relief benefits from the government, to top it up to £3600. Or you can start putting in as little as £16 per month for them, which, with tax relief will be made up to £20 a month.

I'm unlikely to spend on my flat as its rental

If pensions don't count as savings for the benefit cap, then put almost all of it into a pension. You could also put £50 per month into the government's saving scheme designed for people on UC and they add a bonus after 2 and 4 years. I think it works out as 25% tax free added to it at the end of 4 years. You have to act this month, as you need to open it within a month of receiving some UC and earning a particular amount.

Don't forget that with a private pension you can draw some down as a lump sum when you are 55.

@Clappingforjoy

Some very interesting comments and I see the point in them all I am not going to get upset at the nasty ones because I have had similar feelings and know where they are coming from I just want financial security and would be gutted if this money went. I am a carer and havent had this sort of money ever in my life and feel clueless on how to use it because in this day and age it's not a life changing amount but it could be good for something.

I think this is a good attitude OP. It's time to start thinking about how you could get to financial security, using this money to try to change your situation.

Is there anything that would increase the number of hours you're able to work or help you get a better paid job? Could having savings help reduce your outgoings? E.g. it might enable you to pay bills by direct debit, which often gives a discount. How long would it take to build your credit rating back up? Are you in an area with affordable housing, is there feasible way to work towards a mortgage?

I'm sorry for your loss

Diana I opened one but now I'm off universal credit I cant keep it

@user1471462428 people who work and have over £16000 or more will pay tax on the savings too or some of it , plus they have worked and earned that money if someone is saving for a house and has £20000 say and then loose there job they also won't be able to claim
We had savings for a house , I lost my job we no longer have savings for a house as we had to stop saving and use that money to pay bills etc

I am going to think carefully I would love to buy a house but I cant get a mortgage due to credit score.

[quote rockhopper20]@Mycastle - why is the government subsidizing landlords' investments? small or otherwise? Thats a clear transfer of public cash into private hands. Rather than building social housing and therefore keeping public cash public[/quote]
Well they are not building houses are they. And that isn’t landlords fault. People need some where to live. Some people invest in to pensions/stocks and shares and some people invest in bricks and mortar. Most landlords are really not super rich and many are accidental.

MN has a shocking view on landlords and most of the time it’s unwarranted. Are landlords that only take working tenants ok or is it just tenants on benefits that are the problem?

Benefits should never be a lifestyle choice. Ever.

I am horrified at the number of people essentially telling the OP how she can play the system to keep claiming benefits and get £26k into the bargain.

I have actually just applied to go on UC Because I am a single parent, am unemployed and money is tight. I find the idea of applying for benefits horrifying. Worse yet, I am likely to be rejected because I am unemployed and because I am unlikely to be able to find work as I am VI and the number of people with VI out of work is roughly 85%. But I am required to speak to a job coach, required to commit to taking any work which comes up (someone I know was sanctioned because they refused to apply for a job as an amazon delivery driver,) I also have to commit to travel 1.5 hours each way to/from work.

I have been looking for work for a considerable amount of time now and actually had a job offer withdrawn because of accessibility. And yet the amount of people who have said to me “you should try to convince them that you’re incapable of work (I’m not, I’m just unlucky) and well, everyone else does it so why shouldn’t you?”

Where on earth is the self respect in that. If someone left me £26k it wouldn’t even have occurred to me that it might affect any benefits I might want to claim.

We need to get away from this attitude that benefits are a lifestyle choice.

If you have £26k then you live on that. Appropriate it into your living costs to make it last longer, and when it runs out, then go back on UC.