Universal credit

[Birchbirchbeech]

I am about to come into some money. I would like to put this down on a shared ownership property, so that myself and 2 dc have somewhere to live that is more stable than privet renting, and as we will be paying rent on part of the property will be more affordable.

However my wage will not cover the reduced rent and the bills and I will be claiming universal credit. Is this allowed, or is it seen as depravation of assets and uc claim could be rejected? If so I would have to use the windfall instead to supplement my income until it has gone, whilst renting privately and then claim, which just seems such a waste.

I have looked at increasing my hours at work to bring in more money, but unfortunately the increased childacare, tax and travel about equal the increase in earnings. I work a very niche area, and moving jobs would mean moving areas and much less flexibility or a much reduced wage so also not really an option.

Thank you

It depends how much you're talking about:
www.entitledto.co.uk/help/Savings-and-other-capital-overview-Universal-Credit

Thank you. The windfall would be in the order of 50k (divorce and my share of equity in the family home) so I would not be entitled to help (quite rightly), but if I was to use it towards a house to house myself and dc I would be left with less than 6k, and would eventually need some financial help, but I am not clear if that would be classed as depreciation of assets?

I asked cab and they couldn't answer, and I haven't been able to get through to the benefits help line.

Ooo tough one. Before you put the money into a house I would hazard a guess you would have to stop claiming because you have to much money then once the money was in the house put in a fresh claim.

Just a guess though don't bank on it.

And congrats on your money!

There are no set rules around deprivation of capital. It's about intent rather than what you actually spend it on. You need to be able to show that the way you spent it was reasonable and you didn't knowingly spend it in order to qualify for benefits / more benefits / benefits sooner. The longer the gap between spending the capital and claiming benefits, the less chance there is of it causing problems.

How have you been supporting yourself before this windfall?

If you are buying a house to live in, then in general the primary purpose of that is to have a secure home. The purpose is NOT to deprive yourself of capital for benefits.

I agree with peegreen, in principle
You would be able to show where the entire amount went, and securing yourself a secure rental. Would £50k be enough to purchase a shared property without a mortgage?

Ring them yourselves it might make a difference in the next financial year though like tax credits

I work in housing benefit and purchasing a property that will be your main residence isn’t deprivation of capital. I’ve just had a quick look at the UC legislation and it shows the same.

The deprivation of capital cases I’ve seen are where someone transfers money to their children or family members as a ‘gift’ then immediately claim benefits.

There are many legitimate reasons to use capital - buying a residence, paying off debt, buying/ replacing a main car etc

Thank you all. Currently still in the same house as my stbxh so not claiming (half bills mean I can get by, just). Am planning to leave enough to be able to live on for 6 - 12 months so wouldn't start a claim immediately anyway.

Hi

I just wondered if you'd found anymore out?

My husband died this time last month, his funeral was Friday. He was only 43 and I'm 35. We have a 10 year old and a 13 year old.

I'm currently stretching my wage which is 1/3 of what used to come in, I have had to apply for uc to top me up but haven't had a decision yet.

He does have life insurance which with the probate delay isn't likely to be paid for around 4 months.

When it's paid I'll no longer qualify for uc.

I'd really like to put the money to good use and use some to buy a share of a house to secure a home for the children, we currently rent.

We have never claimed any benefits. Hubby worked for the Mod and I was working 2 jobs. I've had to go down to one job to be here before and after school.

I think I could buy a share of a house and be ok for a year or 2 before I'd need some help

I'm just scared incase they say buying the house share is deprivation of capital, if they do I wouldn't be able to last long on my wage alone as it's about £1000 a month

If I could give the money back and have my husband instead I'd do it in a heart beat, now I feel like I need to do everything possible to make sure the children are taken care of.

The only other thing I'll be spending on is paying for my own funeral.

Life feels very fragile now.

Thank you

Am so sorry for you loss Steedam. Buying a house to live in is not seen as deprivation of capital. You will be absolutely fine to do that.