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Original poster

Buying second hand car while on UC.

2 replies

Beeloux · 08/12/2024 10:38

Hi all,

Looking for some advice. I’m currently on UC and planning on going back to work next year. I have 9mo and 3 year old dc. Last year, I had to get rid of my old second hand as it failed the MOT and repairs were going to cost thousands. My insurance had also sky rocketed as I moved area.
I’ve been very careful with my money this year and was hoping to buy a second hand car for around 1-1.5k. I’ve also moved back to my original town where the insurance is much cheaper.

I currently have just over 6k in savings which has been declared to UC and I get a small amount deducted from the claim each month.

What’s concerning me is if I buy a second hand car would be classed as deprivation of capital? I recently had a claim review which went fine. However the agent over the phone was questioning a lot of transactions such as why I spent £25 in Asda (for a food shop) and asking about an Amazon transaction of £50 (which was for stair gates and a fireguard). Also asking why I had withdrawn £20 from the hole in the wall. Confused

Public transport where I live is very unreliable and there was a 3 month bus strike last year. More often than not if we’re waiting for the bus, the pram spaces are already taken so we can’t get on. Also when I start work, I can imagine a car would be beneficial.

Does anyone have any knowledge? I don’t want to get in trouble. Thanks in advance!

OP posts:
Bromptotoo · 08/12/2024 11:51

The short answer is no.

A person is not to be treated as depriving themselves of capital if the person disposes of it for the purposes of—

purchasing goods or services if the expenditure was reasonable in the circumstances of the person's case.

Those words are from the Universal Credit Regulations 2013 Regulation 50(2).

Even if you lived in Central London where public transport is very good somebody with 2 kids could show they needed a car.

I suppose if you inherited a massive sum and blew it on a brand new Range Rover you might have trouble. Buying an ordinary hatchback for you/your kids to get around in and replace a dead old one then that's reasonable.

Original poster
Beeloux · 08/12/2024 12:18

Bromptotoo · 08/12/2024 11:51

The short answer is no.

A person is not to be treated as depriving themselves of capital if the person disposes of it for the purposes of—

purchasing goods or services if the expenditure was reasonable in the circumstances of the person's case.

Those words are from the Universal Credit Regulations 2013 Regulation 50(2).

Even if you lived in Central London where public transport is very good somebody with 2 kids could show they needed a car.

I suppose if you inherited a massive sum and blew it on a brand new Range Rover you might have trouble. Buying an ordinary hatchback for you/your kids to get around in and replace a dead old one then that's reasonable.

Great! Thanks very much. Will start looking around. 😊

OP posts:
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