Rules regarding unemployment claim and cash gifts.

spitandpolish

I have that one friend who is 40 and still doesn't know what to do with life. He's had maybe 60-80 jobs and hasn't yet found his niche :wall: that said he's like a brother to me and I've been more than happy to sub him a few quid since his last bout of unemployment starting in February this year.

He's recently put in a claim for job seekers allowance or it's modern equivalent UC and the amount he'll receive hasn't really gone up since I last signed on fifteen+ years ago. £73 a week isn't enough to get by on so...

If I were to set up a standing order paying £40 each week as a cash gift top-up how is that likely to affect his claim? Or should I just continue to bung him a few notes when I see him?

Thank you.

calcotti

Gifts are ignored as income.

TELLIT01

calcotti wrote: »

Gifts are ignored as income.

True, but if a weekly deposit of £40 was seen it would certainly raise questions, and payment may be suspended while they investigated. Dropping him cash is the low risk option.

iammumtoone

I appreciate its not the questions you asked but I would suggest not giving him set amounts.


He needs to find a job and you topping him up every week is not going to help with that.


I am not saying let him struggle but maybe only help him out when he asks/really needs it rather than regularly. Perhaps you could put this 40 a week aside so when he needs something you have the money available and if it asks for more that is in the pot you say no.



73 a week is not a lot but he will get other help with this (help with rent/ council tax/prescriptions etc) so what he gets in reality is more.

tacpot12

It might be a good idea to give your friend a signed letter saying that you are gifting him the money out of your taxed income and will continue to do so while you are able. With this he could fight off any suggestion that the money was earned income, if you were to die or lose mental capacity.

Note that if you make a Power of Attorney and lose mental capacity, the Attorney would not be able to keep paying these sums on your behalf even though you might have been paying them for a long time.

[Deleted User]

Instead of exchanging cash/cash deposits.

Give him a food parcel each week or arrange a online food shop delivery each week.

tomtom256

Just transfer the money, put gift as the transaction name, if ever questioned, which is highly unlikely it can be easily explained.

spitandpolish

iammumtoone wrote: »

I appreciate its not the questions you asked but I would suggest not giving him set amounts.


He needs to find a job and you topping him up every week is not going to help with that.


I am not saying let him struggle but maybe only help him out when he asks/really needs it rather than regularly. Perhaps you could put this 40 a week aside so when he needs something you have the money available and if it asks for more that is in the pot you say no.



73 a week is not a lot but he will get other help with this (help with rent/ council tax/prescriptions etc) so what he gets in reality is more.

True he needs to find and hold onto a job... not the most reliable and I wouldn't employ him going on real cv. Still living on £70 per week is miserable and I can't allow that to happen.

Thanks.

[Deleted User]

Are you sure he is only getting £73 per week, what about rent? and council tax benefit?
You could buy him a gift card for one of the big supermarkets every week.

[Deleted User]

Why not invite him round a couple of times a week and make him a meal? He might not appreciate sums of money being handed over each week for nothing.., and to be totally honest, if he did, it might not be helpful. It could make him more helpless, less able to fend for himself.

I will never say benefits allow a life of ease, but they're not meant to. It sounds like he's a single man, he has to find a way to keep going dependent on him. What about voluntary work? He needs to find a way to keep going even when he doesn't particularly like a job, until something better comes along. I've done some awful jobs to earn a wage in the past, most people do.

spitandpolish

We live 50 miles apart so meals wouldn't be an option. He's been living in his mother's home for the last 3 years rent free whilst she has been in a dementia care setting, now deceased the home will be sold. There is a charging order on the home for the cost of the care and after debts have been paid it is expected there'll be no inheritance. He'll then be homeless. AFAIK he is in receipt of council tax benefit.