DWP/ UC setting people back financially - mortgage related [Merged]

BristolBelle

I am posting more to vent than anything else, and maybe this will raise some awareness of how short-sighted the DWP are and how they are setting working people back financially rather than helping them.


I separated from my partner last year and we sold our jointly owned house. Because I had to separate our finances my tax credits were migrated over to the Universal Credit system which meant not only a decrease in entitlements but also a five week wait. This meant I had to break the purchase chain and move into the house I intended to buy on a 6 month rental agreement.


I was advised that the DWP would disregard the equity for 6 months to allow me time to purchase a new property for myself and my two sons, who are 1 and 3 years old. The proceeds of the sale were not enough however, after the deposit and agency fees had been paid, to allow me to purchase the house, so I had to find somewhere cheaper.


Unfortunately my claim to Universal Credit was cancelled from 3rd February, on 20th February by Iolanda of Flowers Hill Service Centre, due to the proceeds from the sale of my previous home not being disregarded as per UC policy paragraph 13 of Schedule 10 (capital to be disregarded) of the Universal Credit Regulations 2013 - in the middle of the 2nd mortgage application!


I have applied for a Mandatory Reconsideration, as covered by paragraph 13 of Schedule 10 (capital to be disregarded) of the Universal Credit Regulations 2013, and submitted evidence on 1st March. This was not acknowledged until 15th March on the online journal and I am unable to escalate this matter through the helpline, being told there are no statutory time limits for processing Mandatory Considerations, even though the error was not on my part in any way.


To compound the matter, I am now in a worse situation financially than I would have been had I not claimed UC at all, as I am paying for childcare that was accounted for as being reimbursed at 85% by UC, in addition to the loss of the £130 a month that is my entitlement.
Under the current circumstances I am unable to secure a mortgage for the amount agreed when I made the offer, despite having a large deposit and working 4 days a week, simply because of a totally unnecessary and arbitrary mistake on the part of a DWP individual, ostensibly lacking in knowledge of her own area of jurisdiction, but lets face it, probably acting on a covert directive to save money for the DWP.


I am almost at the end of my six month tenancy and no closer to securing the mortgage. I am at risk of homelessness unless I continue renting and ultimately I cannot sustain the costs of renting on a single income with two children without using up the proceeds from the sale of my previous property. This could ultimately means giving up my job and claiming more benefits than I would ever wish to, when all I want is to purchase a property based on what I am actually entitled to!
In both cases I have had to pay legal fees and search fees to purchase properties that have collapsed/ at risk of collapsing - because of matters relating to the policy/ lack of application of policy from the DWP.


I am just so angry at being caught up in their system and I have to take my youngest out of nursery and even in doing so my mortage application would still be declined as it would look I was trying to falsify my income!

jezzer_72

I think some of the post although harsh are true.

Hopefully you manage to find somewhere and they sort it out. Many years ago i graduated during the recession and couldn't find a job so i claimed JSA for a short time. Annoyingly, I found that JSA hindered me from getting a job in my field.. So much so, I went for an interview and was sanctioned because i didn't inform them earlier enough that i wouldn't be able to attend the Work Seeking interview... I was asked to come to the interview the day before the meeting at which point i immediately called to inform them.

I was also stopped from doing work experience by JSA/DWP for a job and company I secured thee years employment with because the work experience was more than 8 hours a week.

Unfortunately it is just how it goes until someone develops a system that actually helps specific circumstances rather than hinders most people it is trying to provide an outcome for.