Universal credit - selling a house

[Coffeekam]

My mum is on universal credit with an additional amount for being unable to work.

she sold her house and moved into a ground floor flat which is shared with the housing association so she owns 75% and they own 25%.

she made a profit of £12,000 and bought £7000 worth of things for her flat (carpets, fridge, couch) etc.

she has been told to report her profit to UC. She didn’t realise she had to. They want her bank statement from the day she sold her house although now her savings are a lot less.

will she be deducted £100 per month (4.25 per £250 over £6,000)?

if so how long will this be for as she doesn’t technically have the money anymore?

thanks

Can you contact welfare rights or citizens advice? In the past reasonable deductions for furnishings etc were accepted. Does your DM have receipts for the things bought, that might help?

I don't think needing furniture and carpets is unreasonable when she's moved into a new property. She needs to be entirely honest with them but I don't think they'll be able to say that she's intentionally deprived herself of her assets. I'd hope her UC would remain the same as she always gets.

Replacing furniture and things will not be seen as deprivation of capital, unless maybe buying top of the range stuff. Uc are only interested in savings/ capital over £6k., so if she has 5k left then that shouldn't affect anything. I can't see that there would be a problem with the other 7k being spent on necessary stuff, so I can't see that there would be any deduction. Is your mum aware that she can now get help from UC for the rent part of her shared ownership? She will need to report rent costs on her Uc journal.

As far as I’m aware there isn’t a rent part- just that if she sells it she will owe them 25%. I will double check. Thanks

Sometimes they ask for receipts for money spent. Or at least they used to. But 7k isn't a totally excessive amount so she may be ok.

I guess that UC could argue that some of the things youve listed were not necessary, as I assume she already had some of them therefore they aren’t essentials as such?