Deprivation of assets?

[flossyragdoll]

Hi, not sure how this works. I’m a full time carer and currently get universal credit and carers allowance totalling about £500 a month. I may soon come into an inheritance of about £20,000.

I believe my universal credit will stop until I have £16,000 left, after which I’d get a tapered amount until my savings depleted below the minimum threshold of £6000 then I’d get the full amount again.

I would like to take myself and the person I care for on holiday and out for some nice meals with the money I am set to receive. Nothing excessive, just a week away somewhere like Tenerife, self catering.

However, I won’t do this if it means the universal credit people regard the trip/meals out as ‘deprivation of assets’.

I can’t find anything online about this. Is there an amount I could spend on a holiday without it being viewed as this or is going away out of the question? We haven’t been abroad for nearly ten years so would really like to but not if it causes financial hardship in the future.

I will also be in the position, for the first time in a long time, to refresh my wardrobe and fix things in the house that have desperately need doing for years.

As above, I don’t want to spend any money on these things if I’m later judged to have ‘splurged’ and deliberately ‘depleted my assets’. I just don’t know what a reasonable amount I can spend is.

There's guidance and loads of case law on deprivation of assets.

The key thing AIUI is intent. If you spend money, or otherwise dispose of assets with the intention of increasing or retaining title to benefit then there lies trouble.

If you spend a reasonable sum doing things that generally align with your lifestyle, and I'd guess what you suggest do, then I don't think you'd have a problem.

That's not to say questions would not be asked and perhaps a decision from a case manager sought. Bottom line though, I don't think you'd have a problem.

Also, don't forget you can use capital to pay down debt, ie a car loan, without it being seen as deprivation even if the debt is not due.

I'm not sure of the answer but save all proof of your spending. When I sold my house /bought another one because of my disabilities I'd kept some money back to do the adaptions (I had to complete these within a time frame and show what I had spent the money on). It had to be clear enough that they could see it was a suitable use of money.

Thanks for your comprehensive response.

I think the bit about ‘aligning to lifestyle’ is the bit which worries me as I can’t currently afford to go on holiday or eat out. So if I used the money to do those things this might be viewed as not living according to my lifestyle?

You're allowed to live your life.

You're allowed a holiday.
If your car was knackered you're allowed to spend to replace it.
Your boiler blows up...
New clothes is fine

You'll be fine Op. I got money from a house sale and spent it within a few years and claimed. Then spent it down to 6k and put in a change in circumstances. Mine was on things like furniture, rental deposits, rent, holidays (3), driving lessons, car, insurance etc. I wanted to use the money to get the things I knew I couldn't afford if I didn't have it.

Going on holiday and buying a new sofa and chairs, a dishwasher etc - wouldn't be seen as deprivation of assets, as long as these things aren't purchased and given away to other people for the purpose of reducing your savings. As a pp states keep all proofs of purchases, receipts for everything that you spend. Also use a bank card/credit card to purchase everything as this gives you both receipts and proofs of purchase.

@flossyragdoll the phrase aligning to lifestyle is mine.

The DWP guidance is here; see paras H1795 on. The phrase used there 'they purchase goods and services and that expenditure was reasonable in the circumstances of that person’s case' us taken directly from the UC Regs.

An ordinary UK citizen purchasing a package holiday to (say) the Canaries is, IMHO, incurring expenditure that is reasonable.