Savings in my name stopping Universal Credit despite low income

[slowingdown1]

can anyone more financially savvy than me help?
Recently divorced, ex DH pays minimum child maintenance. Have a low
income due to home working in low demand role so I can care
for 2 x disabled children. Yearly
salary is £31k before tax, I save £100 monthly into pension. I claim Scottish disability payments for both kids which go on private treatment / therapies. Each month I scrap by and have a constant low credit card debt despite my best efforts. I have savings that were gifted to me by my mum as long-term financial security of £80k. Although the money is legally in my name, I have made a firm promise to her that I will not use it, so morally I do not feel able to touch it until she is no longer with us.
My current income is low, but because these savings are in my name, they are preventing me from applying for Universal Credit as above
the threshold.
I understand I can’t eg transfer the savings into trusts for my kids as this would constitute deprivation of capital. I can’t ask my mum to eg take it back for the same reason.

You can pay off a lump sum off your mortgage.
You may need to say (if asked) that money was gifted specifically for that purpose but you can invest in the house you live in.

Apparently I can’t as it will be seen as deprivation of
assets.

The problem is that you can’t do anything to shift the 80,000 as it will look like a deliberate deprivation of assets so you’ll have to use it to support yourself before you’re able to claim UC. It’s pretty galling tbh to think that it’s ok to have this huge amount of money but not have to spend it because you ‘want it for the future.’

Surely you thought about this before accepting the money? Sorry but your mums views are by the by, if you have cash at that level you can’t expect to claim - I’m sorry for your situation with your children - that’s tough but could you maybe pull back a bit on paying for therapies if things are that tight and maybe use a bit of your savings towards that - and use pip towards general family getting by - I think if you reframe it mentally- there’s no way your mum would begrudge you using some to help your children .

Again, giving it back/
transferring into kids names is apparently all deprivation of
assets. So I can’t do that either. Absolutely not
trolling!

Why on earth should the tax payer, who may be barely breaking even themselves, pay you UC, when you have a small fortune (to many, to me) in the bank!!

Okay well just try it and see is my advice

Buy a 70k car then yes, but surely it's not deprivation of assets if you are using it to pay the bills?

Why did your mum give you the money and then tell you you can't use it until she dies? Why didn't she just leave it to you in her Will?

Sickening

She gifted it to me without asking as a kind gesture
When she was diagnosed with dementia and
wanted to know I could cover the kids lifelong care when she’s no longer here. I wish in hindsight she’d known it’s not that simple and at the time I didn’t know I’d end up on a sole low income supporting 2 kids with disabilities for life.

Why do you want money from the rest of us when you're already pretty well off?

It is morally wrong to try to work out a way to get more money from hardworking taxpayers when you have a well paid flexible job, receive benefits to support your children as well as maintenance (which you’re clearly entitled to) and then have a substantial pot of savings on top.

If I were in your shoes I’d feel lucky and be grateful in the circumstances. It could be a lot worse. I imagine it’s challenging though juggling all this as a single parent but financially it sounds fine unless you have a big mortgage? If so, could you try to cut your spending or relocate so that you have a smaller mortgage and release some equity perhaps?

Use the interest off your 80k to help balance the books, surely that's got to be a good monthly return .

I don’t know, she was aware she was becoming more unwell at the time so perhaps didn’t think it through other than she wanted to know I had something when she’s not here.

The DWP would probably flag it if they discovered it but that would require them asking for proof of savings, bank statements etc, which I don’t think they do when a claim is started. but OP would be within her rights to say she is struggling with the cost of living and so paid a lump sum off her mortgage to reduce her monthly direct debit. I think this would be acceptable.

This

Buying a 70k car would be seen as an unreasonable use of spends
Paying down a mortgage is different

Adp payments don't count as income but it doesn't detract the fact you've 80G in savings.

seems a waste what about family emergences etc

I can assure you I am not well off. Take home pay is £2k, mortgage is £800, medical and therapy costs on top of their disability payments are £400 per month. Rest goes on food, clothes, petrol, council tax, electricity. I have minis at end of each month. I live in a big city as need to live
to the hospital and my job here is not considered well paid for housing costs etc.

Sorry but you’ve got £80k in the bank - why do you think you should get tax payer money?

I think you need to check on this. If you used the savings to pay off a chunk of your mortgage, to bring down your monthly outgoings, that may be considered a reasonable use of the money. You may also find if you reduce your mortgage payments this way, you won’t be struggling to live the way you are now, and may not need to claim UC

CAB said overpaying mortgage would be risky in how they would view it
but sounds like it may be an option?

No, as long as you can justify why you are doing so, for example, to give financial security to you and your children.

It could still be viewed as deprivation of assets.