Deprivation of capital

Froglet

I am sure this question has been asked before but my sister is trying to get a little clarity.it seems opinions can be quite variable.


She is 58 and for the last 12 years has been on long term benefits through illness which means she cannot work.She is on the ESA income based allowance.


She,as am I and other relatives,are due an inheritance shortly of between 15k and 20k approximately.This will obviously take her over the limit and she will then need to live off the capital.She is in the fortunate position of living with our Mum in Mum's bungalow so does not have too many outgoings but does have some medical expenses to try and keep herself as well as she can.


Obviously she will inform the benefits people that she has this income,and is now wondering if she can add a small amount to her quite small pension to bring the capital down a bit.The last thing she wants to do though is spend money on necessities but then, when the money does eventually run out,she does not want them to turn round and say that everything she used the capital for will not be allowed when reconsidering a claim again.


W are aware that things can change in the future and when she is 66 she will get a state pension that will be more than her current benefits.She is a very honest person and wants to do everything correctly but she has had a very hard time this last 12 years and is only just coping .


Has anyone any experience of what constitutes deprivation of income ?I don't mean a car(she doesn't drive) but other possible essentials.


Thank you for any information.

RAS

She may still be below the £16K top limit https://www.gov.uk/employment-support-allowance/eligibility

Based on previous comments here, different benefits seem to have different rules about what is acceptable.

HappyMJ

Froglet wrote: »

I am sure this question has been asked before but my sister is trying to get a little clarity.it seems opinions can be quite variable.


She is 58 and for the last 12 years has been on long term benefits through illness which means she cannot work.She is on the ESA income based allowance.


She,as am I and other relatives,are due an inheritance shortly of between 15k and 20k approximately.This will obviously take her over the limit and she will then need to live off the capital.She is in the fortunate position of living with our Mum in Mum's bungalow so does not have too many outgoings but does have some medical expenses to try and keep herself as well as she can.


Obviously she will inform the benefits people that she has this income,and is now wondering if she can add a small amount to her quite small pension to bring the capital down a bit.The last thing she wants to do though is spend money on necessities but then, when the money does eventually run out,she does not want them to turn round and say that everything she used the capital for will not be allowed when reconsidering a claim again.


W are aware that things can change in the future and when she is 66 she will get a state pension that will be more than her current benefits.She is a very honest person and wants to do everything correctly but she has had a very hard time this last 12 years and is only just coping .


Has anyone any experience of what constitutes deprivation of income ?I don't mean a car(she doesn't drive) but other possible essentials.


Thank you for any information.

Nothing constitutes deprivation of income. You can gift income away as much as you like it doesn't affect anything. Income turns into capital the day you get the next payment for that income so give it away the day before you get the next payment and it won't count.

Deprivation of capital however is a grey area. You'll only get opinions. What one person considers luxury another considers it as an essential.

I would consider anything at all related to improving her health and maintaining a healthy lifestyle is considered a need. If that means needing to go on a holiday then go for it.

What expense is she considering to help her not "just" cope but really cope properly?

Mojisola

HappyMJ wrote: »

I would consider anything at all related to improving her health and maintaining a healthy lifestyle is considered a need. If that means needing to go on a holiday then go for it.

This^

Is there any equipment that would make life easier? Would a new bed or new furniture help?

If she has mobility problems, is there a need for a walk-in shower or something to help get in and out of the bath?

Froglet

HappyMJ wrote: »

Nothing constitutes deprivation of income. You can gift income away as much as you like it doesn't affect anything. Income turns into capital the day you get the next payment for that income so give it away the day before you get the next payment and it won't count.

Deprivation of capital however is a grey area. You'll only get opinions. What one person considers luxury another considers it as an essential.

I would consider anything at all related to improving her health and maintaining a healthy lifestyle is considered a need. If that means needing to go on a holiday then go for it.

What expense is she considering to help her not "just" cope but really cope properly?

Thanks for your reply.Until she gets the inheritance she can't really plan.She has a small amount of savings that has been dwindling over the years so ,with my help as her concentration levels are poor,we can work out all her outgoings and what she considers a must and what she can cut back on.


I agree that they surely cannot look upon anything that helps make her life more comfortable as a luxury.She has an old mobility scooter and will likely need to replace that soon.Regular osteopath treatments and homeopathy consultations are also important .I don't know if she has any other major plans,as she doesn't get out very much and cannot cope with long holidays,maybe just short coach trips if they are not too far away.

Froglet

Mojisola wrote: »

This^

Is there any equipment that would make life easier? Would a new bed or new furniture help?

If she has mobility problems, is there a need for a walk-in shower or something to help get in and out of the bath?

Thanks for your reply.When her illness was at it's worst(she has chronic fatigue syndrome) she needed carers just to help her get to the bathroom and have a shower.With my Mum's failing health too,then a walk in shower could well help but as they live together I doubt it would be taken into consideration as I suppose it is my Mum's responsibility as she owns the bungalow.


In one way it is good that she doesn't have really major expenses as a homeowner does,but when she loses her benefits she will have other expenses such as dental,opticians and prescription charges to all pay for,something which she hasn't needed to do up to now.


It is a truly wretched illness.Imagine having no strength to get out of bed for months on end,but having to make yourself get up if only for the bathroom.She had a good job until the illness struck.It is sad.However at the moment she is quite good but has to really pace herself so she doesn't relapse.

HappyMJ

Froglet wrote: »

Thanks for your reply.Until she gets the inheritance she can't really plan.She has a small amount of savings that has been dwindling over the years so ,with my help as her concentration levels are poor,we can work out all her outgoings and what she considers a must and what she can cut back on.


I agree that they surely cannot look upon anything that helps make her life more comfortable as a luxury.She has an old mobility scooter and will likely need to replace that soon.Regular osteopath treatments and homeopathy consultations are also important .I don't know if she has any other major plans,as she doesn't get out very much and cannot cope with long holidays,maybe just short coach trips if they are not too far away.

She's obviously got mobility issues some home help would be fine.

patman99

The one thing with gaining an inheritence is that the rules around what does and what does not count as deprivation of capital is, as others have mentioned, a grey area.

The best people to ask must surely be the DWP as they should know whether or not spending part of the money on something as vital as a new mobility scooter would be classed as DoC or not.

Anyway, if the money pushes her over the £16k limit, she would then ahve to reclaim ESA once the capital drops below the £16k and keep informing them of changes as the capital drops by each £250, as this means she then gets an imediate increase in benefits.

As you mention that her mum is not in the best of health, she may well be entitled to a shower or walk-in-bath via the Council or similar.

xylophone

Is she currently contributing to a personal pension?

Even though she has no relevant income, she could contribute up to £2880 net per annum to a pension scheme and receive tax relief of £720.

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/417473/pension-flexibilities-dwp-benefits.pdf

Mojisola

Froglet wrote: »

It is a truly wretched illness.Imagine having no strength to get out of bed for months on end,but having to make yourself get up if only for the bathroom.

She had a good job until the illness struck.It is sad.However at the moment she is quite good but has to really pace herself so she doesn't relapse.

There are several of us on MSE who have ME - I know what your sister is having to cope with.

She's lucky to have a close relative who realises that she's really ill.

baza52

new carpets or laminate, new bed, wardrobes etc and if the cooker or other appliances need replacing then get those as well.
A larger tv so its easier to view would also be helpful.
New clothes if the present ones are worn or ill fitting.
Taking a holiday and paying for a carer to go with them.


As you cannot deprive yourself of income any non means tested benefits could be withdrawn in cash and deposited under the mattress etc.


(before anyone says im advocating fraud Its a legal way of doing things)