Inheritance while on Universal Credit: what are my options?

[Stressedmum6761]

Hi everyone! 👋 I'm currently losing my marbles and need to speak to anyone who's been in the same boat.

My nanny passed away nearly 2 years ago now and it's taken a while for her things to be settled and sold etc. My family passed me a letter today addressed to me from my sweet, beautiful nan and a cheque for nearly £12K. I've been in absolute bits all day I keep bursting into tears. I've never had this much in my life and never ever expected anything from my nan at all and it's absolutely thrown me.

The thing is I know I should be absolutely THRILLED with this money, I'm on my own with DD who's 6 now. We've just moved into a council house 2 months ago and I'm on UC top up which also covers my rent, my job doesn't pay well but it's a school job and I get my holidays off with DD. I'm panicking more than anything because I know that as soon as I cash this cheque UC are going to deduct money each month (about £120 if my maths is correct).

My family said they know nan wanted me to put a deposit down on a house, which again I know if I get a mortgage my UC stops and I'm financially liable for the payments and any repairs etc if anything goes Pete Tong.

I'm thinking about just putting most of it in a LISA for now and potentially in the future buying a house...maybe a once in a lifetime holiday with the rest. I'm just torn because if I buy a house, I'll be so much worse off than I am now getting help from UC with rent payments etc. I've just moved into this house and started decorating and making it my own. I'm worried about the money sitting there and me being so scared to spend anything while also having money deducted from my monthly payments. Again, I'm absolutely ecstatic I've got this chunk of money for security but the fact that it's going to effect me whether I spend it or not is flapping me to the core.

What do I do? Has anyone had experience with coming into money while also being on benefits? Thank youuu from a very emotional and stressed mum.

@expectmore or in OPs case she is a single person with a SINGLE income.

People in FULL TIME work are needing UC top ups. Huge numbers of essential roles are minimum wage roles. We saw that during lockdowns. For some people, unless there are big changes in the system, will always need to claim benefits. For life.

The system is stacked massively towards increasing wealth for the wealthy and keeping the poorest poor. It’s getting worse.

This idea you have that benefits are only there as a safety net is based on a society that no longer exists. Working people can no longer afford to live because wage increases haven’t matched cost of living hikes. I work with families where both parents do 40 hour weeks - shift work so they can juggle child care - they can’t make ends meet.

You are living in a fantasy world. You also sound like Dickensian Britain is what you are rooting for. I hope you don’t fall in hard times yourself.

I already save £200 a month in a help to buy ISA...have done for the last 5 years. Still not over £1500 if you must know...moving costs, car repairs, new white goods after my old ones conked out, Christmas, birthdays and any other thing life throws at you has stopped that getting any higher.

Stop justifying yourself to people who just don’t get it.

I can tell from your posts that you are intelligent and a dedicated parent. I think you will make good decisions here.

Ignore those that just don’t understand how things really are as a single parent on a low income.

I do think a consultation with citizens advice might help. They have experts in how to maximise income on benefits (legally) and can help you to work out what to do for the best. It’s confidential and they don’t feedback anything to authorities.

best of luck.

Yes we absolutely shouldn't, it's a shame on us as a developed country that that is the case. The cost of private rentals and childcare in large cities is far exceeding salaries, hence the need for many people who you expect to be in middle class occupations requiring state support just to have a roof over their heads.
I will say though that for people who want to work, UC is a much better incentive than the legacy benefits.

Tough isn't it. By the way I totally get it.

Every positive change you can make has a downside. Debt is always the first thing to pay off. Nice not to owe anything apart from a mortgage

Unfortunately my husband's military service and two massive strokes as a civilian that left him permanently disabled don't quite fit into your fantasy insurable narrative. However as he's already contributed a massive amount to society whilst I continue to do so, I leave you on your comfy little high horse.

As per my previous comment, how sad you consider those who have to claim anything because of a life altering event feckless and lazy. It's easier though, isn't it, to lump everyone together? So, as its my last response to you, and in your own words, you keep doing you. Hopefully you're nicely protected with insurance against any event that might put you in a vulnerable position. Judgement is easy- empathy not so much.

Will your UC continue if you have these savings and the £12k? I think your claim might stop for a bit actually.

You’re not connected to reality. A single £100k earner contributes more tax that over 20 £20k earners.

1 person, pays more than 20 combined, despite earning much less than 20x the amount. And that’s discounting the fact those on £20k will get benefits on top.

how can that be stacked massively towards increasing wealth for the wealthy and keeping the poorest poor? It’s literally the opposite.

stop believing propaganda and look at the facts.

also, how can a societal construct and individual aspiration and responsible that results in folk being in benefits for life be right? They’re literally reliant on other adults (tax payers) to provide for them for life. How can anyone think that’s right? I’m clearly excluding disability benefits etc from this.

You either can’t or are choosing not to read properly. I clearly state I was discussing (un)employment benefits not disability benefits.

I think long term unemployed people that aren’t disabled have some underlying mental health problems tbh. Nobody wants to be unemployed, it’s bad for self esteem etc. Like not getting out of bed or not washing - it’s a symptom of underlying issues. Being raised on a council estate, I can safely say that people on low incomes are just as hard working than those on high incomes. They just have lower education/qualifications/support/prospects on average. They still continue to work hard at necessary jobs. But just carry on judging and assuming they have loads of options to get out of this situation if that makes you feel better about being full of resentment.

I can’t even be bothered. Do your own research.

I’ve similar life experiences having grown up on some of the most deprived estates in Europe. Just because someone has a different opinion that you disagree with doesn’t mean they’re judging nor trying to feel better about themselves. They can just have a different world view. In my case, that’s on in which adults take ownership of their own circumstances and one in which we collectively take care of those less able to look after themselves, for whatever reason. I just don’t agree with the mentality of expecting other adults to pay for those that are able to provide for themselves but choose not to through laziness or any of the other myriad of reasons that we seem to be plagued with.

There we go.

Please help me and explain how that situation is stacked in the favour of the poorest? It literally isn’t.

Perhaps there’s a societal reality check needed that reminds us that perhaps a single income by a single person isn’t enough to cover a single family home, holidays, or etc etc. we’ve misaligned expectations to means.

i know i lived in shared housing until i could afford to live in my own place and then made sacrifices to be able to buy and save for the future.

The Op has a child. She should not be expected to live in a shared house. The government has decided she is entitled to a council house. As you pointed out earlier, this maybe represents what the majority of people would want for her, in her circumstances. Stop derailing the thread now with your theoretical discussions of benefits and society. The OP asked a question specific to her life circumstances.

You seem to be suggesting that because you were able to buy a home and save by making sacrifices, those who can’t do simply aren’t making enough sacrifices or managing their expectations.

Most people stay in their childhood home or live in shared housing before they move into their own place. These days many who manage to get on the housing ladder do not have much/any wiggle room to save for the future. Any surplus each month will likely go in the pot for big expenses (boiler, fence, roof, car dying).

What exactly is the “reality check” you think is needed here? Are you expecting the government to provide it, or are you saying people should simply accept that home ownership and things like holidays are no longer realistic on a single income?

Oh, I can read, extremely well. I read your sweeping statement about the lazy and feckless. Funny how only now you weren't, of course, including all those on UC which, oh super educated one, includes a lot of severely disabled people. Hope that never happens to you (although of course you're fully insured against absolutely everything so should be super 👍)

Clearly, now you are..
Except UC itself includes a health element and a carers element where applicable.
Do some research before you lump everyone together 🙄

Yep. Chances are, Expect More who is apparently insured against everything...? has possibly still been treated by an NHS nurse or HCA at some point? Shocking how many of those have to also be on UC.

The reasons for poverty and how hard it is to get out of it are complex, inter-related, multi-factorial and multi-systemic.

Check out Gary’s Economics for a starting point to educate yourself.

I’ve worked with families for over 30 years. I see it with my own eyes.

Universal credit doesn’t stop when you buy a house? As long as you don’t touch ANY of that money while it’s in a separate account and use it ALL on buying a house and inform UC about it and do it within 6
months you will be ok

It's 12K. On top of an income that is already stretching OP. She's not buying a house in the next 6 months.

Perhaps the recent milestone our country embarrassing hit of spending more on benefits in month than what it collected might be the reality check we need….? Surely it’s obvious that’s not sustainable?

Realistic for a family on a single low income? Of course they shouldn’t be. Why should they be? The minimum income role isn’t designed provide an income for an entire family. Thats the whole point. They need to be entry level and / or unskilled.