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    • adamyork
    • By adamyork 11th Sep 17, 3:36 PM
    • 2Posts
    • 0Thanks
    Spending inheritance / effect on benefits
    • #1
    • 11th Sep 17, 3:36 PM
    Spending inheritance / effect on benefits 11th Sep 17 at 3:36 PM
    Hello everyone. First up just a quick summary of our current circumstances:
    • I currently work, my partner does not
    • We have a three-month old baby
    • We live together in a private rented house
    • We have just started claiming Universal Credit
    • We currently have < £1000 in savings combined
    • My partner is soon due to inherit ~£9000 from the death of a relative

    Once the above inheritance money has been received, we were planning to buy a new car and also driving lessons for my partner. I am currently the only one who can drive, but have a small 3-door car which is both unreliable and unsuitable for family purposes.

    We were thinking of maybe spending around £5000 to get something suitable, but are unsure whether or how this would affect our benefits?

    The inheritance would temporarily take us above the £6k savings threshold for Universal Credit (we would have around £10k) - but as it would soon go back under this amount (i.e. once we had bought the car) would this be taken into account when our UC benefits were next reviewed? Should we be declaring the inheritance even though we wouldn't have it for long and would soon be back under the 6k cut-off?

    Also if it were taken into account, would it be deemed an unnecessary purchase or too much to spend on a car?

    I've so far found it very difficult to find specific information on exactly what benefits money can / can't be used for and what would be deemed unnecessary purchases. We certainly have no intention of 'diddling the system' etc, so any opinions or clarification on this would be much appreciated!
    Last edited by adamyork; 11-09-2017 at 3:39 PM.
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    • Silver Shark
    • By Silver Shark 11th Sep 17, 4:12 PM
    • 29 Posts
    • 47 Thanks
    Silver Shark
    • #2
    • 11th Sep 17, 4:12 PM
    • #2
    • 11th Sep 17, 4:12 PM
    You do need to declare the inheritance as soon as the money is deposited into your account. You can ask advice at the same time if the purchase of the car and driving lessons will be deemed to be deprivation of capital. Obviously keep all receipts.
    • venison
    • By venison 11th Sep 17, 5:06 PM
    • 1,468 Posts
    • 1,608 Thanks
    • #3
    • 11th Sep 17, 5:06 PM
    • #3
    • 11th Sep 17, 5:06 PM
    I doubt that a car around £5000 would be seen as DPC.
    I am a BG on loans,credit cards and benefits I volunteer to help get your forum questions answered and keep the forum running smoothly". Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to Any views are mine and not the official line of
    • TELLIT01
    • By TELLIT01 11th Sep 17, 5:27 PM
    • 4,392 Posts
    • 4,625 Thanks
    • #4
    • 11th Sep 17, 5:27 PM
    • #4
    • 11th Sep 17, 5:27 PM
    You absolutely must declare the inheritance when it hits the account. It is a change of circumstances and ALL C-o-C MUST be reported.
    • decbel
    • By decbel 11th Sep 17, 6:07 PM
    • 1,494 Posts
    • 1,617 Thanks
    • #5
    • 11th Sep 17, 6:07 PM
    • #5
    • 11th Sep 17, 6:07 PM
    Can't see anything wrong with spending £5000 on a car. After all its for work purposes, isn't it.

    As Tellitt says do the right thing and report the change of circumstances more to cover your backs than anything else.

    Lots of people get caught out because they can't keep their mouths shut.
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