Acquiring capital on UC

stupidaspie

Two questions:

1) If a UC claimant receives a sum of money under £6000 not classed as earnings and doesn't report it, what would happen if the DWP found out?

2) Is spending £4000 in as many months likely to be seen as deprivation of capital if they received an additional sum which they didn't know they were going to get (but  found out during this time that they might), four months later?

poppy12345

stupidaspie said:

Two questions:

1) If a UC claimant receives a sum of money under £6000 not classed as earnings and doesn't report it, what would happen if the DWP found out?

2) Is spending £4000 in as many months likely to be seen as deprivation of capital if they received an additional sum which they didn't know they were going to get (but  found out during this time that they might), four months later?

1/ Savings of under £6,000 doens't affect the amount you can claim and you don't need to tell them because it doens't affect it.

2/ If they received an additional sum of money and it took their savings above £6,000 then you'll need to report it. There's no guidlines of what you can and can't spend your savings on but buy the most expensive item to reduce your savings could be questioned.

huckster

As long as it is capital under £6k and capital never exceeed £6k overall, there is no consequence. Might affect any Council Tax benefit, as I think the capital value that needs to be reported is where it exceeds £4k. But people will have to check with their local council. As for deprivation of capital, it all depends on the actual details. Please be specfic and not just ask general questions. Where has the capital come from and what are they spending it on ?

stupidaspie

The additional sum didn't take their savings above £6000, and I don't think they made any really extravagant purchases.

poppy12345

stupidaspie said:

The additional sum didn't take their savings above £6000, and I don't think they made any really extravagant purchases.

Then it doesn't matter what the money was spent on because as advised, it's not counted and doesn't affect it. If everyone rang DWP that had savings of under £6,000 then we'd never ever get through to them and it's difficult enough as it is.

huckster

stupidaspie said:

The additional sum didn't take their savings above £6000, and I don't think they made any really extravagant purchases.

Are they drawing money from a business and not declaring it properly. If you are helping other people with queries, then make sure you ask basic questions. How did you obtain this money e.g inheritance?

stupidaspie

huckster said:

stupidaspie said:

The additional sum didn't take their savings above £6000, and I don't think they made any really extravagant purchases.

Are they drawing money from a business and not declaring it properly. If you are helping other people with queries, then make sure you ask basic questions. How did you obtain this money e.g inheritance?

No, the payments were a lump sum of child maintenance arrears and an out of court settlement. I am not the claimant, it's someone in my family. It all happened last year and from memory, she bought some new furniture when she got the first lot but it wasn't that expensive and didn't wipe out the funds.

NedS

Child maintenance payments are classified as income and are disregarded. Any income that remains unspent at the end of the AP falls to become capital. DWP have no interest in what you spend your income on, although if it is intended for the maintenance of a child then probably best it is spent on that. As others have said, so long as your capital never exceeds £6000 you do not need to notify UC.