Universal credit disregarded capital

moocher22

I have recently separated from my husband. Our family home has been sold and I have half the equity. I have no income and three children to support. I intend to use the capital to buy a home for us to live in, but the purchase I intended to make has fallen through. We are going to stay with a relative whilst we look for another property to purchase but in the interim we have no income at all. Obviously I intend to find a job and pay my own way, but this make take a little while and so I’d like to apply for some support from the state for the first time ever. I understand that the capital may be disregarded if I make an application for universal credit. My question is- do I declare it as savings when I apply and then ask for it to be disregarded? Or do I disregard it myself and not declare it? I can’t seem to find information on this anywhere so some advice would be appreciated! Thanks in advance! 

calcotti

You must declare it. If you intend to use it to purchase another house the capital can be disregarded for six months or longer if the DWP consider it reasonable to do so. You will therefore need to have evidence of the attempted purchase that has fallen through and evidence that you are still looking for a new property. It will be at the discretion of the DWP as to whether they disregard it or not beyond the six month period (which starts from when you received the money).

see https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/832009/admh2.pdf
Paragraphs H2119 and H 2120.

In terms of the practical process I am not sure what will happen if you declare the capital while completing the online application - it's possible the computer will screen you out. I am not familiar with how the questions are asked. If that happens I guess you would have to not declare in order to make the application but immediately add a note declaring it once your UC journal is open. Hopefully others can comment on this.

Robbie64

In this instance I would suggest booking an appointment with the Citizens Advice. The organisation has (or at least did have last year) a contract with the DWP to help people complete the Universal Credit online application form and are supposed to assist with any problems that arise. I have a feeling that it will not be possible to complete the application online due to capital being in excess of £16,000. I would attempt to declare the capital from the outset as giving false information on the UC online claim can lead to a penalty charge of, I think, £100. Obviously in this particular circumstance there would be no intention to commit fraud but personally I wouldn't take the risk of not initially declaring any capital, at least not until it became absolutely necessary to do so in order to by-pass the restrictions of the online application form.

[Deleted User]

The disregard doesn't apply in every case its upto a DM to decide.

TELLIT01

moocher22 said:

 My question is- do I declare it as savings when I apply and then ask for it to be disregarded? Or do I disregard it myself and not declare it? I can’t seem to find information on this anywhere so some advice would be appreciated! Thanks in advance! 

Never make the decision yourself as to what does and does not need to be declared.  Declare everything and let DWP make the decision.  I suspect the UC system may automatically screen them out on the basis of capital but the only way to be certain is to make the application.  If the automated system does screen them out, it's at that point that a phone call will be required.