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.

Also you mentioned your car is old. Is it diesel? You may find yourself needing to change to petrol soon anyway so something small like a fiesta?

@offred yes but those people work for their money - that's the difference

Sorry for your loss. I do think it’s fair enough though that people with more than 16,000 in savings can’t claim benefits. It’s a lot of money which many taxpayers don’t have. I can understand it’s horrible to live in relative poverty and of course everyone personally would prefer to keep their savings. But as a society it’s not right that people with significant savings can claim taxpayers money. I think the level of savings is quite high too - in many other countries it’s much lower.

I suppose it’s like the council house right to buy - totally understand why people take it up personally but on a societal level it is a bad thing imo as it has meant much less social housing for everyone.

YANBU. I understand how some posters see it black and white as "you have money, you don't need universal credit" but the reality is even with £26k it's a horrible situation to have no income and still the same amount of outcome.

£26k is lower than the average UK salary so may last a year or two at most and then you're back on universal credit. IMO, financially UC should be based on earnings only, and things such as inheritance, savings, claims, prizes etc. shouldn't factor into the threshold.

The system in place now keeps the poor people poor.

A person with health issues and low earning potential who’s living in rented accommodation obtains some money because someone close died. Hardly the luckiest person in the world. And yet there are people here who can’t muster any empathy at all because she currently has more in the bank than they do. 🤷‍♀️

@duffeldaisy

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.

That's a good idea how to invest in yourself. There is lots of organisations helping women into business

[quote gottakeeponmovin]@offred yes but those people work for their money - that's the difference [/quote]
How lovely for them! Unfortunately though, OP has mental and health conditions that prevent her from doing anymore hours than she already does.

Would you consider moving somewhere cheaper? In Bradford or some parts of Leeds that amount would be half a house and I imagine lenders wouldn’t be so concerned about lending you smaller amounts.

@OffredOfjune

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.

@OffredOfjune She's still a tax payer, just hasn't reached the personal allowance threshold. She works and contributes to society the same as you do, so get off your high horse.

It is not bitter to be astounded by this, I can understand why you might be disappointed but there are so many people who cannot save because they need to sustain their lives. The benefits pot is for those who are desperate (or it should be) not for people who are sitting on a windfall most people can only dream of. The benefits you are on are your safety net - not this money.

@Clappingforjoy

Apple I never said not work at all I want to work but only a certain amount of hours

Here is the quote, where the OP says she 'wants' to work only a certain amount of hours.

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.

@LadyFelsham "wants to work a certain amount of hours".. is that a joke? She has mental health problems. Jesus Christ I really don't understand the lack of understanding and compassion from some people.

IMO, financially UC should be based on earnings only, and things such as inheritance, savings, claims, prizes etc. shouldn't factor into the threshold.

I understand where you are coming from with this, but couldn't you eventually arrive at situation that someone with 100k savings, 3 million pound mortgage free house will claim benefits? That would be bit too much though, wouldn't it.
Unfortunately the threshold ought to be somewhere.

From entitled to:

Universal Credit - Deprivation of savings and other capital

Deprivation of savings and capital

How notional capital affects Universal Credit

Deprivation of capital is when you knowingly reduce or transfer elsewhere your savings or other capital to get, or increase your award of Universal Credit. This may be before making a claim or during an existing claim.

If your capital has reduced significantly you may be asked for evidence that you no longer have it. This may include:

documents to show that ownership of property has been transferred to another person

deeds to show that money has been given to another person in trust, settlement or as a gift

receipts to show what your cash or savings has been spent on

An Advisor will contact you if you need to send more evidence.

The DWP will look at the evidence to decide if you have reduced your savings or other capital, by how much and why you did this. You will be treated as still having the capital if it is decided that you did this to get, or increase your award of Universal Credit. This is called notional capital.

When working out the Universal Credit you may get, notional capital is added to any actual capital that you may have.

Because savings and other capital don't stay the same, your notional capital will reduce by an assumed amount in each assessment period until it is exhausted.

I'm sorry to hear about the loss of your parents. I lost both my parents, several years apart, and had to fill in two death certificates, arrange two cremations, sort out two peoples; bank accounts, clear two houses, and so on. It was expensive and I didn't inherit any extra other than to cover it.

I hope you aren't too sad at the loss of your parents and at the sale of the family home.

@MargotMoon
I think you're mistaking 'being on a high horse' as having sympathy and coming to the defence of someone with mental and physical health conditions, who is being battered by people who have probably never had to live a life on benefits

Anyone who buys anything pays tax. End of storey. Earning wages doesn’t make you a tax payer.

Is it a life changing amount? If no I think it’s a shame you’ll loose your benefits. Sorry Op
Must be stressful

@Elieza

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.

You can't just spend the £10k because that could well be classed as deprivation of capital. The key in such cases is intent - is the claimant spending the money in order to become eligible for benefits again? Many of the suggestions on this thread would put OP in some danger of being assessed as having what's called notional capital - money she's spent to get below the £16K limit.

The one safe way of using the capital is to pay off debt.

I also think it’s pretty unfair calling people with a different opinion from you names (for those who have). We do seem to forget taxes come from those who pay them a lot of whom are not that wealthy. I think we should all be contributing to society if we can which includes living off savings rather than the taxpayer.

Cant you tell them you owe some money to someone and have to pay them back?

@Vagessence

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.

@LadyFelsham "wants to work a certain amount of hours".. is that a joke? She has mental health problems. Jesus Christ I really don't understand the lack of understanding and compassion from some people.

^^This.

Even during a worldwide pandemic, when more people have ever needed the welfare state than in its history, people are still getting irate and upset because someone might have something they don't. I wonder how many people on here snarking at the OP have been thankful for the furlough scheme, self employment income support, even the bloody eat out to help out scheme? Bet they weren't complaining about "free money" then.

Eee... I'm torn because I can understand why you wouldn't just want it all to go on living costs. It's nice to have a windfall, I get it.

But I also think it's fair that there is a cut off, you really shouldn't be able to sit on thousands in the bank whilst still claiming benefits. £16,000 is still a lot of money to have in the bank whilst still being entitled to benefits. £26,000 is huge.

Spendsome on increasing your credit score, pay off all debts etc then when you go under 16k you can apply for universal credit again, Book a holiday for next year, Pre buy next years birthday presents, Buy some new clothes or a new phone or bed etc, prepay some bills, You can put a few hundred on your water bill or your electric bill or Internet bill,

[quote OffredOfjune]@MargotMoon
I think you're mistaking 'being on a high horse' as having sympathy and coming to the defence of someone with mental and physical health conditions, who is being battered by people who have probably never had to live a life on benefits [/quote]
Oops