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.

I clicked YABU because I think it's right you don't get benefits on top of savings, but I also do understand how you feel, because it is scary worrying about money and it's really hard to get out of that perspective where nothing feels secure.

@user1325352314

You can't really call being able to have up to 16 savings "nothing".

I did not call £16k savings "nothing". Don't deliberately misrepresent what I said to try and bolster yourself. I commented on what it means for a person's life.

If everybody was subjected to an arbitrary cap of £16k after which their income vanishes and the savings have to be used to stay alive, how does anybody manage to buy a house or pay for the adaptations they need due to their disability? For example. Not an exhaustive list and not intended to be.

If it's fair, why isn't everybody restricted to £16k in savings and then all income earned thereafter confiscated?

How does someone who will never be able to work make the kind of major long term improvements to their life that non-disabled people can make by saving long term?

Why is that objectionable?

Where should the cut off be then? Should someone with £50k in the bank still be able to claim benefits? £100k?

Basically you need to spend ten grand on something or you will lose your benefit income. Your benefit income is like ‘free’ money. Forgive the term.

Why would you not spend the £10k in order to get free money? That makes no sense. You are going to lose out on x amount per week. Eventually it will add up to the ten grand (and you can reclaim weekly or whatever benefits). It makes no sense not to spend it. You’re literally throwing away money if you don’t spend the £10k.

What you need to work out is what is considered appropriate by the benefits system to spend the cash on. So as not to jeopardise your benefits claim. They don’t approve of frittering money. Like £10k on a diamond isn’t going to be an acceptable use of the cash. I think it can be lots of little things. Not restricted to one large thing.

Private healthcare to get your health conditions improved so you can work?

A new car that will last you another decade (the old one won’t don’t kid yourself.

A new bed if you have a sore back as one of your health conditions.

Paying debt?

Do your research and spend it sensibly. Or lose the equivalent in free benefits money.

@LadyFelsham you know full well the comments I'm referring to are the ones talking about "free money" and "lifestyle choices", not the ones disagreeing constructively. Yes, those are bitter and not disguising it well.

To be honest I'd just buy an nice new car or something and keep it below. It's only one off money and not enough to set you up for life. Ignore the people who have no idea what it's like to struggle.

It is hard. My parents never gave us any money it helped us out financially. Lived in relative poverty - hardly any holidays. They saved it all up to give us when they died. Which backfired totally due to early onset dementia and nursing care costs. They would have been so upset had they knows. I only wish they had given their grandchildren even £20 each, or a nice gift to keep like a piece of jewellery. Or taken us on holiday as children.

I am not talking about asset deprecation, but one holiday a year in a caravan, one small christening gift etc. Nope. Nothing.

I understand how you feel, it like loosing some security and not gaining it.

I would take some advice on how to continue with your claim if you haven't got the money yet. Can you prepay for your funeral or ask to change the amount you get to some goes to your child?

@lakesideadvent

I would look into shared ownership on a flat as a possibility?

Watch the panorama programme from last week before committing to this.

@Waxonwaxoff0

Here's a newsflash for some of you: being a taxpayer doesn't make you a better person, as this thread shows.

Some of the hard of reading on this thread also can’t seem to grasp that OP is also a tax payer given she works.

Take most of it out in cash, store it in a fireproof safe, keep claiming.

@Clappingforjoy

Oh thanks for some of the supportive comments and for those less positive ones I can understand why you have made those comments because I have felt exactly the same way

OP, please ignore the awful comments. You have every right to feel that way. That 26k is literally half of what some people make in one year on MN, but hey, they get to keep their savings and carry on earning that wage every year, but look down on you for being a bit upset about having to now live off that, and then (hopefully not) go back to UC.

Some of the hard of reading on this thread also can’t seem to grasp that OP is also a tax payer given she works.

Pay tax on £900 a month income? Right.

If you're looking for very part-time, flexible work, is there anything you could spend it on for training, or for equipment to set up as self-employed in something you're good at?
If you do feel up to that, then you'll be able to set your own hours and routines, and so fit it around what you're able to do in your situation. (Or invest in that, so that if your situation can change in the future, you can make the most of it).

All the best with deciding what to do. I'm sorry. And for the judgmental posters on here, benefits cover all sorts of situations. Yes, the ideal thing is they help to support people between jobs, but they also support people with chronic health conditions too.

What about using it to invest in a pension scheme? Or private counselling or whatever treatment you need to feel better. Investing in yourself is always a good idea.

I'm sorry for your loss.

I agree with PP - if you have been unable to work and you have very low income, can you check what sorts of things would be "acceptable" to the UC people to spend your money on? Is there equipment that would be "nice to have" but would make your life easier?

For your car, look at it like this. If you buy a relatively inexpensive but reliable replacement, your old one which is still going would not be out of reach of someone else with little money but in need of a car? so you upgrade a little, and the person who now doesn't have one, can buy yours?

What about insulating curtains and things that might make your house more energy efficient but aren't within the remit of your landlord? That sort of thing

[quote Waxonwaxoff0]@LadyFelsham you know full well the comments I'm referring to are the ones talking about "free money" and "lifestyle choices", not the ones disagreeing constructively. Yes, those are bitter and not disguising it well.[/quote]
Fair enough but I can understand people being bitter, especially when the OP throws in remarks such as she doesn't know what to spend it on and only wants to work a certain number of hours.

I imagine a few people coming home from a long day working-with exactly zilch in the bank- to find a hefty bill waiting for them on the mat are not filled with sympathy for the OP's plight.

I don't blame them.

It’s frustrating but I can see why they need a cut off with savings. It was unfair on the old tax credits where you could own multiple properties etc and still get money.

If I were you I’d upgrade your car, nothing fancy just something a bit newer I know you said your current car still runs, but what if it breaks down when you’ve used all your savings and you can’t afford to replace it? I would also look at any other items that might need upgrading. As long as you’re not extravagant it should be fine.

Are you sure you definitely can’t buy a house? I would contact some banks and check as it may be that you just have to pay a higher interest rate.

Can you pay for training, going back to college or an open university course? If you can get some decent qualifications, you can increase your salary in the long term.

Or if you have children, put it in premium bonds accounts for them.

[quote Waxonwaxoff0]@OffredOfjune exactly, OP has said she suffers from depression leaving her unable to work much, and she has lost her parents, and all these bitter people can say is "lifestyle choice" "free money" and point out that she isn't a taxpayer as if that's the measure of being a good person. Bet if they had to live on benefits they'd change their tune.[/quote]
Yes. Sometimes Mumsnet revolts me.

Money doesn't come from a magic pot. People who are working are paying for it. Why should we pay for someone who has 16k in the bank which is more than most working people have. Shocking

Sorry for your loss. You are very fortunate to have money at all inherited, the large majority do not, here's some ideas to use it to secure your future:

1. Obvs I don't know your credit score but London and country mortgages are good for people.who have had difficulty elsewhere. What are house prices like in your area? Would that be a 25% deposit on a small flat?

1. Pension - get one now! Not really sure how much you would be allowed to put in before "deprivation of assets" comes into play, I would think £5k would be fine if not more?

1. What is your job/what are you good at? You could go PT for a year and study to get yourself in a more secure position. If you can manage physical work plumbing/electrician course? My plumber charges £70 per 30 mins labour so an amazing career imo!

@LadyFelsham where did OP say she only wants to work a certain number of hours? She said she is only ABLE to work a certain number of hours. Depression isn't a choice.

I did not call £16k savings "nothing". Don't deliberately misrepresent what I said to try and bolster yourself. I commented on what it means for a person's life.
Calm down, yeah. Saying that why should they be forced to spend their entire life on the poverty line always struggling to get by and never allowed to do anything that could better their circumstances without being punished? Poverty line to me means nothing. Not 16k in savings. People absolutely CAN "better themselves" with 16k. Let alone 26k.

How does someone who will never be able to work make the kind of major long term improvements to their life that non-disabled people can make by saving long term?
Well they do what others do and live by their income. People on low wages do so too. They move to cheaper areas, they buy doer upper or they stay renting and stay as they are or they find different way to improve their lives...
16k is a substantial sum for nearly everyone, life changing for many actually.

MN is an unlikely place to get much sympathy.

Helpful reminder to the hard of thinking that OP is also a taxpayer.

Also, it doesn’t sound like OP is considering this, but a few people have suggested buying shared ownership - this is something you should really approach with caution - it is unlikely to be a good move for someone on a low income who does not expect to see their income and/or their wealth improve in the medium term. I used it as a route out of renting myself and for me I think it has been the right choice, because my salary prospects are fairly solid, but you assume the costs of ownership (eg all repairs) whilst still paying a significant amount of rent which is likely to go up, sometimes by a lot. I wouldn’t touch it on £900pm.

It's a vicious cycle.

Someone with a disability who has a council or HA property and claims benefits whilst working will eventually (likely) require grants etc for adaptions to a home etc.

So you lose UC to out that money towards loving costs which then gets claimed again later in the system when the support is needed again.

However that 26k could also be used to improve the economy because it's spent.

I've never been sure what's the right answer!