Universal credit debt

[Zaza6375]

Hi all,
Ive today received a bill from UC for £40,000!
I received UC from Feb 2020 until Feb 2023 when I separated from my husband.
I sold the family house and bought a smaller home for the kids and myself. I had money left over so I went into the UC offices to state that I now had savings and cancelled my UC payments..which they did.
They are now saying I have to pay bank the amount that was given.
Has anyone else experienced this? My youngest is disabled so the money that I have left over is to convert the house so she can have a bedroom.
Im a single parent on very low income and only receive DLA.
I have phoned them and they are calling me back on Monday as the person I spoke to was 'unsure' 🤯
im scare out of my mind as there is no way I can repay this.
Many thanks

Has your local council got a welfare rights and benefits service? If so, ring them first thing on Monday.

If not, get in touch with CAB.

Did you have no savings at all when you got UC?

Jesus Christ 😬

Do you mean the job centre when you say uc offices? Because there's no such thing.

You would have had to a change of circumstances on you account and put the details in there and then they would have closed the account surely. I hope you did that anyway as that's your proof.

Yes but she'd have noticed if she was still getting UC payments when she'd declared she had savings no?

When you claimed the UC for 3 years were you living in that maritial home that you sold or were you living in another property and then sold the ex maritial home?

Nope nothing

I had to move into rented and claimed UC to help pay the rent. Which I told UC. My name was on the mortgage for the marital home until I sold it

And the payments stopped when you told them to stop them yes? What period are they saying they overpaid you for?

Hi yes I went straight to job centre and told them and showed them my savings from the sale of the house. UC payments stopped that day.

Yes I told them exactly one week after I sold the house so the payments stopped straight away.
they are saying I need to pay back the whole three years of UC payments I received before I sold my home.

So it took 3 years to sell ? They usually give you six months and disregard the equity in the property for six months but maybe this is the reason why you have the overpayment ?

Is it because for that three years, your house wasn't up for sale?

That’ll be the issue I think. You usually get equity disregarded for 6 months so you can sell the house. Why did it take 3 years to sell?

Yes very likely this. They will disregard the equity in the property for longer if there is a good reason why it hasn't sold within six months. It would depend on why op kept it for 3 years as to whether she has grounds to appeal the overpayment I would think.

Apologies I can't seem to reply to you individually. The reason it didn't sell for three years was because my ex husband refused to move out.

You need correct advice asap. I'd contact CAB and any other welfare advice in your area first thing on Monday morning. Here you will receive a lot of conflicting lay advice and that is bound to make you more anxious.

I once had a tax credit debt negotiated to be paid in instalments by my local welfare advice centre. Even if you have to pay all this money back they will not expect you to pay all at once. Good luck 🤞🏼

Did you keep UC updated on this ? Seek legal advice etc?

They are so strict with this, unless you have extreme mitigating circumstances (such as being in fear of domestic violence, and even then they will usually require proof such as a non molestation order or supporting documents from a domestic abuse charity). If you appeal they will almost definitely ask whether you submitted an application to court to force the sale (did you?). It's to avoid people owning properties and claiming UC then making up stories to get around the rules, which sadly some people do.

It may not be helpful but a friend of mine spilt with her ex and they were still under the same roof. Not divorced. She had to show proof she was getting no financial support from him while under the same roof.

Exactly this. I would start gathering evidence etc to support the case for why it took three years to sell so you can appeal the overpayment. Speak to CAB, local law centre if you have one etc or as Fantasia says a DV charity.

Then yes you'd have to pay it back as you left your home to rent another, break up or not, you had a home and renting another which was funded by the tax payer, you then sold the marital home and brought somewhere else. So, yes they will want to claim the money back. You can pay in instalments over many many years.

Op did you keep UC updated as to what the situation was with the house/ why it couldn't be sold quickly ?

I would guess as others have said it is because it took so long to sell your house.

Can you pay it back using the equity you got from the house?

Was the house up for sale for 3 years and didn't sell or wasn't it up for sale for that long? I thought you only got a house disallowed for 6 months not 3 years. Maybe they want to claim 2 1/2 years back. Why didn't you sell it straight away OP?