Nothing to my name bar inheritance help

[AnotherNaCha]

So, I’m late 40s, one child. Through a series of bad choice and bad luck too complicated to go into, I have no job at the moment, no pension, no other assets house etc.

However my mother left me 40k and i have another 20k I am living off (was more).

My question is, it seems I need to whittle this down to less than £16k to be entitled to any gov help? Whereas someone with a pension and a house is able to access them if no savings?!

Can I put the majority of this into a pension and then start claiming help until I can properly work again?

You could put the money into a shared ownership place and rent the remaining portion, your benefits will cover the rent. You could buy outright in some parts of the country. You can also buy a car for instance, pay for equipment, therapy etc.

We are in this position for dsd, who is severely disabled, including severe ld's. The advice was to go on a spending spree for everything she needs for the next few years, and pay for a holiday including necessary carers, benefits will be fine with one trip

Well, you can't work so presumably can claim for PIP, and your savings aren't affected by this.

Maybe you could have said in the beginning you can't work instead of drip feeding it.

Not all benefits are means tested, can you claim PIP if you can't work? Maybe you need some advice from somewhere like Citizens Advice.

There was a similar post recently on here about somebody in a similar situation (though the inheritance came after she started claiming benefits), once she realise she couldn’t have more than £16k in savings she transferred it back to her mum as it was intended for a house deposit.

Some very knowledgeable posters advised her that once it was in her account, it was hers and even if she transferred it elsewhere then it didn’t matter. The state would expect her to live off the amount without benefits, even if it was for a house deposit.

Just because it’s cash I don’t see the difference

Don’t be disingenuous. People cannot access the theoretical wealth of a mortgaged home; it’s only money when they sell, if they aren’t using it to immediately buy somewhere else to live.

You can’t buy groceries with 6 bricks worth of living room.

You have a readily available source of funds you can use to buy food and pay bills. Universal Credit is there for those who have no means to do so.

I’m sorry you have no long term financial security; I’m older than you and I have none either. It looks pretty scary. However, that doesn’t mean you merit public funds to keep you going while you have £60K to draw on.

But if you have money tied up in a house or in a pension, you can’t use if for day to day living expenses. Yours is cash so you can.

Can you buy a caravan and set it up to live in a nice country area in a town with access to good food shops and a medical clinic?

It won't be the best house in the best condition in the best area but you could buy a little house with that money and then be eligible for benefits and have a little security. I will be in a similar situation soon too so will just have to go where the money can take me.

In good news OP, because you have this money, you don't have to engage with the benefits system. I've heard that brings a world of stress in itself. This money buys you a couple of years freedom from that. Also, you talk about security in old age, what do you mean by that? Not being dependent on benefits in old age? Well, you aren't dependent on benefits now, you might be in old age. I don't see much difference, it's just flipping round when you claim.

You can apply for PIP.

Because you can't spend a house?
If you have £60k you should either use it to live on or get a job.
That is not what benefits are for and the fact that you can't see that is a bit ridiculous

OP, I just searched Rightmove, Yorkshire + 40 miles for sale, max price 60k, 349 listings came up. Maybe you could buy something?

Unfortunately them's the rules. They're not new; means tested benefits have always been means tested.

If you've recent work history and paid NI conts and now you can't work due to a health condition you might be eligible for New Style Employment Support Allowance. Others have mentioned PIP.

Like you I hate the judgemental stuff. You asked a question and it just needs an answer. Posters should bite their lips!

Has your mother already left you this money? If she’d left it to your child you wouldn’t be expected to spend it. Or can you refuse the inheritance if your child is next in line so they will get it?

You won’t be able to put it in a pension. You will be allowed to buy a house if you can afford it. Then at least you have something to leave to your child.

You have 60k to support yourself, so why do you need benefits? It’s unusual to have no job , pension or house at late 40’s.

You have 60k to support yourself, so why do you need benefits? It’s unusual to have no job , pension or house at late 40’s.

Hi OP, you can still put money into a pension but that plan will have to be over a longer term rather than all at once. I don't think you say why you're not working but if you did get a job you can put in the equivalent of your annual wage into a pension, so if you're earning 12k you can put 12k into a pension. There is a tax benefit to this also. If you do that 2 or 3 years in a row you'll have achieved what you need.

In the meantime open a high interest Isa and put the full yearly amount in and maybe buy some premium bonds too.

Best of luck.

As others have said, putting the money into a pension in order to get benefits will backfire. Can you go back to working and use the inheritance for a house deposit?

Op, do you expect state support when you have plenty in the bank and you don't work?

A job

I think you have your answer OP. Even if you didn’t have £60K capital and were eligible to apply for UC you would be still be expected to find a job (unless you are too disabled/sick for employment)

I sympathise. I went to the Jobcentre for job hunting advice, not having job hunted for 20 years, and they told me as I wasn't entitled to benefits because I had inherited a chunk of money, I also wasn't entitled to information and advice from them. I ended up retiring much earlier than I'd intended to (I'm disabled which limits what work I can do).

Several points.
People who have bought a property tend to have paid for it over many years with interest. So they worked and used their income to provide a home for themselves.
The state pension is not, yet, a means tested benefit. It's something that we contribute to over our working lives. It's based on how many years of NI contributions.
A workplace pension is exactly the same, it's something we have paid into over, often, 40 years. Mine is.
I'm sorry you think it's unfair, but sadly those are the rules.
I would suggest you ask the CAB or DWP what exactly are the rules, ie what you can buy and not get penalised for purchasing. The rules are quite complex.