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.

No it isnt fair, ask me how I know.

But surely you have enough intelligence to understand how the OP must feel "breaking" the promise she made to her mum? In her head it is her mum's money and not hers, so morally she feels that she can't use it.

Thats not to say she wont use it , I think it is fairly clear that she will after she has had rather more accurate advice than what CAB gave her, but that she feels guilty about it. Thats understandable.

Because in her head it is her mum's money and she didnt think she could use it for day to day expenses as her mum would hate her "frittering it away". Its not about fraud, its about wanting to keep to her mums wishes without ending up bankrupt, which frankly is a real possibility right now. And now she finds out that actually she can use if perfectly legally and is going to, guilt notwithstanding.

So whats the problem?

MAKE THE ENDS MEET BY USING THE 80 GRAND YOU HAVE ACCESS TO THEN!

YOU DON’T NEED UC AT THIS MOMENT IN TIME

I’m sorry this must be wind up ? You think we taxpayers should be chipping in to give you some universal credit when you earn £31k , already get some disability payments & and have £80k in savings? Wow. Just wow.

With all due respect, in her head it may not be about fraud. But on paper it most definitely is.

And tbh, If it was about her guilt on spending the money, I would have thought it would have been a thread about the guilt, something like "80k in the bank but feel too bad to spend it"

It wouldn't have started with how can I move this money so I can claim on the tax payer..

She's obviously realised how abhorrent of a question it was part way through and changed her track to CAB said I can't spend any of it, but it started out a very financially based question.

I’m just asking if there is anything I can do as CAB have advised if I spend it, UC will still consider it as asset and they’d view
it as me deliberately spending it so I can hit the threshold for claiming

Spend it on bills and day to day living instead of claiming benefits.

You're entitled to your opinion and I am entitled to disagree with it.

I am just sad that you jumped the worst case scenario, I am as cynical as they come but even I can see that this isnt a case of someone trying to hide assets. If she was, why would she as CAB what she can use it for without being accused of deprivation of assets?

Oh and ime people who say "with all due respect" are up there with people who say "no offence but...." so....

Because the NHS provides basic therapy. It is rarely enough to actually benefit the child and as you said, waiting times can also be an issue as well as inconsistency. Parents killing themselves financially to top up therapy for their disabled children is sadly the norm.

Are you sure your mum won't need it back to pay for care fees if she is very unwell ?

Well spotted.

No offence, but... Good intentions don't mean you can break the law.

It's no one's place to judge this person's motives, but I absolutely can point out if what they're doing is criminal? They may not have realised and I could be saving them a hefty fine or jail time ;)

But I can’t spend it as it’s still counted as an asset!

You cover your monthly shortfall with it. Should last a pretty long time. Then when you have under 6k you can claim UC

But the advisor told me spending it will be deprivation of assets so advised against that*

Not if you're using it to live on - to make ends meet.

Haha! Its not criminal or against the law to use the money, funny that you think it is though!

Offence very much meant.

Benefits have sent people insane. £31k salary, 80k in the bank and you're complaining that you can't claim benefits?

yes. you made a promise to your Mom when your life was different. no decent mother what's her child and grandchildren to suffer whilst 89k sits in a bank account untouched.
use your money as it is required

I'm going to stop replying now because you're committed to misunderstanding me and it's clear you don't actually have any rebuttal to the points I've made.

It was obvious I was referring to her trying to claim UC whilst not being eligible, which is illegal, and otherwise known as benefit fraud. Rather than referring to her spending her own money.

Thank you, have a great evening 😊🙏

If your Mother gifted that money to you, knowing she might need care then it's her that will be looked at with regards to deprivation of assets. They'll go through her accounts with a fine toothed comb if she says she has no money to pay for her care

And it will still be regarded as her asset.

If you pay a chunk off your mortgage then your outgoings reduce though.
If you were given the money 8 years ago you must have closer to 100k by now with interest.

Surely that money is in a savings account and earning you around £200+ per month interest?

And I will say again.......Op was worrying about how to manage if she cant claim UC without spending, what she sees as, her mum's money. Nothing at all to do with benefit fraud.

But you carry on in an argument all on your own!

I’ve been living off inheritance for two years. Why would I be on benefits when I have money. Have some pride OP. You should be embarrassed posting this.

So you’d have more money coming in than someone who earns £10k more than you per year? And people can’t understand the “benefits bashers” who complain about UC?! Someone earning £31k, plus maintenance, plus benefit money for your children, does not need a top up from the tax payer.

What is your actual question? You’ve asked if anyone financial savvy can help but in what way?

Morally its wrong to try and obtain benefits when you have what many people consider to be a reasonable income and a good nest egg. My income (NHS pension taken early)is £10.5k per year and my UC is £123.00 per month, a pittance. I have disabilities, can't work , but can't get PIP, I could weep everyday. You don't need to tell your mother if you start to use the money do you, she will never know. If you're genuinely so needy just feed it into the household budget, what else would you use it for, holidays? What's wrong with your children that you need to pay for private therapies for them? Generally everything a child needs ix provided by the state. Maybe you should try getting someone who could help you with home & budget management?

But you're not running it down DELIBERATELY, you're running it down out of NECESSITY. They're two very different things.