Universal Credit - capital and housing costs

Muttleythefrog

Dear all,

In receipt of Universal Credit. Looking to buy new property as sale of existing home nears completion. Will look to getting U/C decision maker to give capital disregard period of 6 months or more on proceeds of sale regarding savings held. Current housing market difficult and was expecting to buy freehold house. However, widening search to include flats/apartments.

Couple of questions.
1. If the capital disregard period runs out (and they refuse extension or such has also expired) and home is later purchased with proceeds of sale do they still consider those sale proceeds as capital held or do they disregard once they have finally been used to purchase new home?

2. How good are Universal Credit at dealing with housing cost support to those with outright ownership of leasehold properties. They state
"If you own a leasehold property, it can also help you pay for service charges, including:

• using shared facilities, such as rubbish collection or communal lifts
• window cleaning of upper floors
• repairs and maintenance"

But I wonder how easy it is to classify and claim for help regarding such service charges with typical leasehold flat type accommodation. Any advice?


King regards!

sammyjammy

Where will you leave between properties?

Muttleythefrog

sammyjammy said:

Where will you leave between properties?

With family

NedS

Muttleythefrog said:

Couple of questions.
1. If the capital disregard period runs out (and they refuse extension or such has also expired) and home is later purchased with proceeds of sale do they still consider those sale proceeds as capital held or do they disregard once they have finally been used to purchase new home?

I can answer this one for you. Firstly, if the disregard period expires and they do not agree to extend, then your existing claim would end as you'd have capital over £16,000.

If you later went on to purchase a property, which took your capital to below £16,000, you would be eligible to claim again. Having previously had a claim closed for capital in excess of £16,000, a decision maker will likely want to know what happened to the capital, and you would be able to show it had been spent on the purchase of the property you are now living in. This would be allowed, and not deemed to be deprivation of capital.

NedS

Muttleythefrog said:

2. How good are Universal Credit at dealing with housing cost support to those with outright ownership of leasehold properties. They state
"If you own a leasehold property, it can also help you pay for service charges, including:

• using shared facilities, such as rubbish collection or communal lifts
• window cleaning of upper floors
• repairs and maintenance"

But I wonder how easy it is to classify and claim for help regarding such service charges with typical leasehold flat type accommodation. Any advice?

This one may be a little more tricky due to lack of knowledge of DWP staff dealing with the issue. I wasn't aware until recently that someone who owned their property could claim housing element for help with eligible service charges (just never come across it before). So I guess it will depend on the initial response you receive. I would always advise calling into the jobcentre and trying to speak with someone knowledgeable about the subject matter (housing element, in this case). You can try pointing out the guidance that states you are eligible, as above, and asking them how you would go about claiming that.

You will be asked for evidence, so you will need a letter detailing the breakdown of service charges paid. The breakdown is particularly important if the service changes also include elements for which support can not be provided (e.g, water charges, electricity, gas etc)

Muttleythefrog

NedS said:

Muttleythefrog said:

Couple of questions.
1. If the capital disregard period runs out (and they refuse extension or such has also expired) and home is later purchased with proceeds of sale do they still consider those sale proceeds as capital held or do they disregard once they have finally been used to purchase new home?

I can answer this one for you. Firstly, if the disregard period expires and they do not agree to extend, then your existing claim would end as you'd have capital over £16,000.

If you later went on to purchase a property, which took your capital to below £16,000, you would be eligible to claim again. Having previously had a claim closed for capital in excess of £16,000, a decision maker will likely want to know what happened to the capital, and you would be able to show it had been spent on the purchase of the property you are now living in. This would be allowed, and not deemed to be deprivation of capital.

Interesting. Thank you. I guess then my question should such a scenario arise (claim closed, new one made) is whether I would be subject to a new Work Capability Assessment - given I currently have Limited Capability for Work Related Activity and indeed would have a continuing claim with the equivalent element included in a Contribution based ESA claim. Would they just transfer the status across as they did when I first applied for U/C (while in receipt of I-R ESA)?

On the other question hmm. Bit tricky I guess regarding housing costs as theoretical at moment and if that scenario did arise it would be 'after the event' (or close to it!) documentation/detail would be known and move will be to a very different part of the country (perhaps useful given the tragic level of U/C knowledge so far revealed to us by local jobcentre). Freehold house ASAP I think hah - keep things simple if I can.

Spoonie_Turtle

Muttleythefrog said:

NedS said:

Muttleythefrog said:

Couple of questions.
1. If the capital disregard period runs out (and they refuse extension or such has also expired) and home is later purchased with proceeds of sale do they still consider those sale proceeds as capital held or do they disregard once they have finally been used to purchase new home?

I can answer this one for you. Firstly, if the disregard period expires and they do not agree to extend, then your existing claim would end as you'd have capital over £16,000.

If you later went on to purchase a property, which took your capital to below £16,000, you would be eligible to claim again. Having previously had a claim closed for capital in excess of £16,000, a decision maker will likely want to know what happened to the capital, and you would be able to show it had been spent on the purchase of the property you are now living in. This would be allowed, and not deemed to be deprivation of capital.

Interesting. Thank you. I guess then my question should such a scenario arise (claim closed, new one made) is whether I would be subject to a new Work Capability Assessment - given I currently have Limited Capability for Work Related Activity and indeed would have a continuing claim with the equivalent element included in a Contribution based ESA claim. Would they just transfer the status across as they did when I first applied for U/C (while in receipt of I-R ESA)?

In that case your status should indeed again be transferred across when reclaiming UC.

NedS

Spoonie_Turtle said:

Muttleythefrog said:

NedS said:

Muttleythefrog said:

Couple of questions.
1. If the capital disregard period runs out (and they refuse extension or such has also expired) and home is later purchased with proceeds of sale do they still consider those sale proceeds as capital held or do they disregard once they have finally been used to purchase new home?

I can answer this one for you. Firstly, if the disregard period expires and they do not agree to extend, then your existing claim would end as you'd have capital over £16,000.

If you later went on to purchase a property, which took your capital to below £16,000, you would be eligible to claim again. Having previously had a claim closed for capital in excess of £16,000, a decision maker will likely want to know what happened to the capital, and you would be able to show it had been spent on the purchase of the property you are now living in. This would be allowed, and not deemed to be deprivation of capital.

Interesting. Thank you. I guess then my question should such a scenario arise (claim closed, new one made) is whether I would be subject to a new Work Capability Assessment - given I currently have Limited Capability for Work Related Activity and indeed would have a continuing claim with the equivalent element included in a Contribution based ESA claim. Would they just transfer the status across as they did when I first applied for U/C (while in receipt of I-R ESA)?

In that case your status should indeed again be transferred across when reclaiming UC.

Agreed, if at the time of making a claim for UC you also have an active claim for ESA, any WCA decision outcome will be carried across onto your UC claim.

calcotti

Muttleythefrog said:..- given I currently have Limited Capability for Work Related Activity and indeed would have a continuing claim with the equivalent element included in a Contribution based ESA claim. 

Your opening post only mentions UC. To be clear, do you currently also have an active claim for contribution based ESA?

Muttleythefrog

calcotti said:

Muttleythefrog said:..- given I currently have Limited Capability for Work Related Activity and indeed would have a continuing claim with the equivalent element included in a Contribution based ESA claim. 

Your opening post only mentions UC. To be clear, do you currently also have an active claim for contribution based ESA?

Yes... about a year ago I applied for U/C while in Support group of IR-ESA and so switched to Contrib based ESA (which had underlying entitlement to) and U/C. Also get PIP.  

poppy12345

Muttleythefrog said:

calcotti said:

Muttleythefrog said:..- given I currently have Limited Capability for Work Related Activity and indeed would have a continuing claim with the equivalent element included in a Contribution based ESA claim. 

Your opening post only mentions UC. To be clear, do you currently also have an active claim for contribution based ESA?

Yes... about a year ago I applied for U/C while in Support group of IR-ESA and so switched to Contrib based ESA (which had underlying entitlement to) and U/C. Also get PIP.  

That's not exactly correct. Part of your ESA was contributions based, with the income related top up. When you claimed UC this ended the Income related part but you kept the Contributions based.