Deprivation of capital

k

Hi can anyone tell me definitively wether it is considered deprivation of capital under universal credit if I use a £20,000 inheritance to put towards buying a house? I have no other savings and would obviously like to use this money to secure mine and my two children’s futures. My partner passed away with no savings and so there is only me and my two young children in the equation. 

Many thanks for any help. 

KatrinaWaves

It would not, no, however be aware you will no longer qualify for housing costs through UC and would need to find your mortgage through your other income 

calcotti

I would suggest getting confirmation from the DWP. It will not be deprivation of capital if it is considered a reasonable thing to do in the circumstances (which I think it should be). However Katrina’s point bout thinking carefully about you will then pay the mortgage is crucial. Indeed you may not find a lender willing to give you a mortgage if you are reliant on UC for your income.

While the £20,000 is in your account you will not be entitled to UC because of the £16,000 savings limit - I don’t recall any applicable disregards in these circumstances.

k

I work three days a week so my universal credit isn’t a full award anyway. I think I’ll have to have a good think about what to do for the best for us. 

Many thanks all.