Can we buy a house whilst receiving benefit?

Life__Goes__On

poppy12345 said:

Life__Goes__On said:

I believe under UC this was sort out and you can buy a house.
The reason is
A disabled person in more likely to be on UC than a non-disabled person (doesn't mean all disabled people are on UC and all non-disabled are not)

Will use a general example.

If a disabled couple on UC wanted to buy a house and lost UC because of this, then they would be disadvantage compared to a non-disabled couple who don't claim UC. Basically stopping many disabled people owning their own home.
This is  classed  discrimination, as the disabled couple (or person) are disadvantaged.

I don't think that's correct and has nothing at all to do with deprivation of capital.

We must disagree then,

Life__Goes__On

JustMum89 said:

My question is, if we use the £11,000 to buy a house and are happy to receive the lower UC amount once the housing allowance has been removed, would this be seen as deprivation of capital? Would we lose our entire UC allowance? Or have to continue the £87 reduction for savings along with the removal of housing allowance? 

https://www.cii.co.uk/news-index/articles/impact-of-insurance-payments-on-universal-credit/68004

Universal Credit – Regulations and Guidance

Regulation 50(2) of The Universal Credit Regulations 2013(SI 2013/376) reads:

(2) A person is not to be treated as depriving themselves of capital if the person disposes of it for the purposes of—

(a) reducing or paying a debt owed by the person; or

(b) purchasing goods or services if the expenditure was reasonable in the circumstances of the person’s case.

The DWP have confirmed that this does include mortgages.  The DWP have also agreed that the next version of the Advice for Decision Makers (ADM) guide will include an example to show that paying off mortgage debt will not be treated as deprivation of capital for UC benefit claimants.

Very clear that under UC  a mortgage is NOT classed as "depriving themselves of capital"

sammyjammy

Life__Goes__On said:

JustMum89 said:

My question is, if we use the £11,000 to buy a house and are happy to receive the lower UC amount once the housing allowance has been removed, would this be seen as deprivation of capital? Would we lose our entire UC allowance? Or have to continue the £87 reduction for savings along with the removal of housing allowance? 

https://www.cii.co.uk/news-index/articles/impact-of-insurance-payments-on-universal-credit/68004

Universal Credit – Regulations and Guidance

Regulation 50(2) of The Universal Credit Regulations 2013(SI 2013/376) reads:

(2) A person is not to be treated as depriving themselves of capital if the person disposes of it for the purposes of—

(a) reducing or paying a debt owed by the person; or

(b) purchasing goods or services if the expenditure was reasonable in the circumstances of the person’s case.

The DWP have confirmed that this does include mortgages.  The DWP have also agreed that the next version of the Advice for Decision Makers (ADM) guide will include an example to show that paying off mortgage debt will not be treated as deprivation of capital for UC benefit claimants.

Very clear that under UC  a mortgage is NOT classed as "depriving themselves of capital"

Nobody has suggested that having a mortgage is deprivation of capital, that would be rather silly as its debt.  The question was around the OP using their £11k savings as a deposit.

TELLIT01

Life__Goes__On said:

poppy12345 said:

Life__Goes__On said:

I believe under UC this was sort out and you can buy a house.
The reason is
A disabled person in more likely to be on UC than a non-disabled person (doesn't mean all disabled people are on UC and all non-disabled are not)

Will use a general example.

If a disabled couple on UC wanted to buy a house and lost UC because of this, then they would be disadvantage compared to a non-disabled couple who don't claim UC. Basically stopping many disabled people owning their own home.
This is  classed  discrimination, as the disabled couple (or person) are disadvantaged.

I don't think that's correct and has nothing at all to do with deprivation of capital.

We must disagree then,

Disagree all you like, but it doesn't make you right.  The rules about house purchase not being treated as deprivation of capital were in place long before UC came in.

Life__Goes__On

sammyjammy said:

Nobody has suggested that having a mortgage is deprivation of capital, that would be rather silly as its debt. 

Silly enough the DMs need an example in their guide!

poppy12345

Life__Goes__On said:

JustMum89 said:

My question is, if we use the £11,000 to buy a house and are happy to receive the lower UC amount once the housing allowance has been removed, would this be seen as deprivation of capital? Would we lose our entire UC allowance? Or have to continue the £87 reduction for savings along with the removal of housing allowance? 

https://www.cii.co.uk/news-index/articles/impact-of-insurance-payments-on-universal-credit/68004

Universal Credit – Regulations and Guidance

Regulation 50(2) of The Universal Credit Regulations 2013(SI 2013/376) reads:

(2) A person is not to be treated as depriving themselves of capital if the person disposes of it for the purposes of—

(a) reducing or paying a debt owed by the person; or

(b) purchasing goods or services if the expenditure was reasonable in the circumstances of the person’s case.

The DWP have confirmed that this does include mortgages.  The DWP have also agreed that the next version of the Advice for Decision Makers (ADM) guide will include an example to show that paying off mortgage debt will not be treated as deprivation of capital for UC benefit claimants.

Very clear that under UC  a mortgage is NOT classed as "depriving themselves of capital"

No one has said it is deprivation of capital, including myself in the very first comment. In a previous comment you said this...

I believe under UC this was sort out and you can buy a house.
The reason is
A disabled person in more likely to be on UC than a non-disabled person (doesn't mean all disabled people are on UC and all non-disabled are not)

Will use a general example.

If a disabled couple on UC wanted to buy a house and lost UC because of this, then they would be disadvantage compared to a non-disabled couple who don't claim UC. Basically stopping many disabled people owning their own home.
This is  classed  discrimination, as the disabled couple (or person) are disadvantaged.

Which was the reason i disagreed because it's got nothing to do with discrimation or about a disabled person being more likely to claim UC than a non disabled person.

Life__Goes__On

poppy12345 said:

Life__Goes__On said:

JustMum89 said:

My question is, if we use the £11,000 to buy a house and are happy to receive the lower UC amount once the housing allowance has been removed, would this be seen as deprivation of capital? Would we lose our entire UC allowance? Or have to continue the £87 reduction for savings along with the removal of housing allowance? 

https://www.cii.co.uk/news-index/articles/impact-of-insurance-payments-on-universal-credit/68004

Universal Credit – Regulations and Guidance

Regulation 50(2) of The Universal Credit Regulations 2013(SI 2013/376) reads:

(2) A person is not to be treated as depriving themselves of capital if the person disposes of it for the purposes of—

(a) reducing or paying a debt owed by the person; or

(b) purchasing goods or services if the expenditure was reasonable in the circumstances of the person’s case.

The DWP have confirmed that this does include mortgages.  The DWP have also agreed that the next version of the Advice for Decision Makers (ADM) guide will include an example to show that paying off mortgage debt will not be treated as deprivation of capital for UC benefit claimants.

Very clear that under UC  a mortgage is NOT classed as "depriving themselves of capital"

No one has said it is deprivation of capital, including myself in the very first comment. In a previous comment you said this...

I believe under UC this was sort out and you can buy a house.
The reason is
A disabled person in more likely to be on UC than a non-disabled person (doesn't mean all disabled people are on UC and all non-disabled are not)

Will use a general example.

If a disabled couple on UC wanted to buy a house and lost UC because of this, then they would be disadvantage compared to a non-disabled couple who don't claim UC. Basically stopping many disabled people owning their own home.
This is  classed  discrimination, as the disabled couple (or person) are disadvantaged.

Which was the reason i disagreed because it's got nothing to do with discrimation or about a disabled person being more likely to claim UC than a non disabled person.

As I said before
"We must disagree then,"
We both have made out points

poppy12345

Life__Goes__On said:

poppy12345 said:

Life__Goes__On said:

JustMum89 said:

My question is, if we use the £11,000 to buy a house and are happy to receive the lower UC amount once the housing allowance has been removed, would this be seen as deprivation of capital? Would we lose our entire UC allowance? Or have to continue the £87 reduction for savings along with the removal of housing allowance? 

https://www.cii.co.uk/news-index/articles/impact-of-insurance-payments-on-universal-credit/68004

Universal Credit – Regulations and Guidance

Regulation 50(2) of The Universal Credit Regulations 2013(SI 2013/376) reads:

(2) A person is not to be treated as depriving themselves of capital if the person disposes of it for the purposes of—

(a) reducing or paying a debt owed by the person; or

(b) purchasing goods or services if the expenditure was reasonable in the circumstances of the person’s case.

The DWP have confirmed that this does include mortgages.  The DWP have also agreed that the next version of the Advice for Decision Makers (ADM) guide will include an example to show that paying off mortgage debt will not be treated as deprivation of capital for UC benefit claimants.

Very clear that under UC  a mortgage is NOT classed as "depriving themselves of capital"

No one has said it is deprivation of capital, including myself in the very first comment. In a previous comment you said this...

I believe under UC this was sort out and you can buy a house.
The reason is
A disabled person in more likely to be on UC than a non-disabled person (doesn't mean all disabled people are on UC and all non-disabled are not)

Will use a general example.

If a disabled couple on UC wanted to buy a house and lost UC because of this, then they would be disadvantage compared to a non-disabled couple who don't claim UC. Basically stopping many disabled people owning their own home.
This is  classed  discrimination, as the disabled couple (or person) are disadvantaged.

Which was the reason i disagreed because it's got nothing to do with discrimation or about a disabled person being more likely to claim UC than a non disabled person.

As I said before
"We must disagree then,"
We both have made out points

The points you stated are not the reasons a person can buy a house. There doesn't have to be any reason why a person wants to buy a house to live in (disabled or otherwise) because the likelyhood of it being deprivation of capital is very slim. Therefore, i don't see your point.

Life__Goes__On

I know the benefit system isn't perfect but
If the OP was able to take out an 100% mortgage, the OP then could straight away pay off £11,000 and that would be allowed. (paying off a debt) but not allowed to use the £11,000 to be used beforehand.

I know common sense isn't always at the forefront  but if the latter was classed "deprivation of capital" then there is something serious wrong.

poppy12345

I give up!