Does anyone know much about housing benefits?

[overlycooked]

My dm gets housing benefit, and had her car stolen.

Obviously she reported to the police/insurance, who have paid out a few weeks later. She's looking for another car ( I don't think she should get one because of her age but that's a different argument)

She thinks she doesn't have to let the benefits office know that she has this money, as it's for a car replacement, but I think it could affect her entitlement. She thinks there's maybe a grace period for her to spend the money on a car, and if she doesn't buy one within a certain time frame she has to declare it? I don't think she has any knowledge about this, she's just assuming!

We are going round in circles and I'll ring a helpline tomorrow but wondered if anyone had been in a similar situation with "temporary funds" as she calls it?

How much money is it?

And does she get actual Housing Benefit, or the Housing Element of Universal Credit (they're not the same thing and have slightly different rules).

To what I've read and could be totally wrong, you only have to declare above a certain amount, not sure how much but would think thousands rather than hundreds. How much did she get back?

£4500. She only gets housing benefits because her savings were just under 16k, and her income from pensions isn't huge.

I've never heard universal credit mentioned so I assume housing benefit.

How much has your DM got in capital, including money for the car?

I'm guessing, since you mention her age that she's on Housing Benefit rather than getting the housing costs element in UC?

So c£16k + 4,500 gives her around £20,000 capital as of today.

Additional question, does she get Pension Credit?

Including the money for the car she now has about 18.5k, so that tips her over the 16k limit which is what worries me.

She's very laissez faire about things like this and I'm a worrier!

I've also wondered - if you're getting a certain amount of benefit due to having just less than 16k in the bank, and your capital goes up over that ceiling just because you've spent less for a few months - what happens then? She was in hospital for a length of time last year and spent nothing (which is why it got anywhere close to 16k in the first place)

Unless she gets Pension Credit then capital over £16k will stop Housing Benefit.

She needs to explain the position to the Council.

So presumably they'll stop HB, then if she finds a car she would have to reapply?

It does seem unfair as she obviously owned the car previously and it didn't affect her benefits, so to replace something stolen to the same value shouldn't mean she gets cut off?
But I guess do speak to council. Surely if she just immediately buys the car with that money then she'll only be over the threshold for a matter of days or even hours.

If she's getting a new car pretty soon then her savings will go back down to a level that she is allowed.

She won't be able to reapply for Housing Benefit, only Universal Credit. HB is being phased out and it hasn't been possible to make new claims for it in a while now.

Can't she just buy a car right now out of her savings and then when the insurance money comes through it'll just leave her in the position she's currently in?

Can't she just buy a car right now out of her savings and then when the insurance money comes through it'll just leave her in the position she's currently in?

She has the insurance money already, and is looking for a suitable car.

Regarding the housing benefit she's only claimed for it very recently, I didn't realise it was being phased out. Someone from the housing office filled in all the forms for her.

You can still get housing benefit if you are a pensioner. UC is for those of working age.
As long as she is buying a new car I can't see it affecting her Housing Benefit. Council's don't have access to her bank account so as long as the money is not in her account for long the Council will not know.
If she has a benefit review during the time it is in her account, she would be able to explain what it is and where it came from. I am pretty sure they would disregard it.

Housing benefit is not being phased out entirely, new claims are still possible for pension age people and for certain types of temporary and supported housing.

Working age people in standard private or social housing tenancies are being phased out of claiming HB.

She's pension age so Housing Costs are through HB.

Universal Credit is a working age benefit though eligibility has recently been extended to pensioners in work as Tax Credits end next year.