Inheritance and Universal Credit

numpty_dumpty

My daughter is on UC and has just stopped work to have a baby, no entitlement to Statutory Maternity Pay but should get Maternity Allowance. She is going to get a small inheritance (c. 10k). I understand this would mean she looses UC is but would keep the MA is that correct? Seems a shame she has to use the money to live off rather than improve her life, is there a way it can be handled so she doesn't loose benefits? 

Voyager2002

She is allowed to use the money to buy essentials but not to spend it simply so that she qualifies for UC (that is called deprivation of capital). There are probably lots of reasonable ways in which she could use £10K to improve her life, most of which would be allowed.

Furthermore, savings of £10K would reduce the amount of UC she received but would not stop it altogether.

MissFlossy222

Maternity Allowance is deducted £ for £ from UC. Once the baby is born she will get the Child element.

£10k in savings will not end her UC claim but she will have a deduction of £4.35 for every £250 she has over £6000. Savings under £6k are ignored.

numpty_dumpty

Thanks, sounds as though the best thing is to get her to spend down to £6k. Does she need to provide evidence of the spending? I'm assuming DWP audit bank accounts/want to see statements and receipts?

TELLIT01

It's certainly sensible to keep receipts as spending can then easily be justified if questions are asked.

NedS

I'm assuming there will be quite a lot of stuff she may need to purchase for the new baby, none of which is particularly cheap.

Spoonie_Turtle

numpty_dumpty said:

Thanks, sounds as though the best thing is to get her to spend down to £6k. Does she need to provide evidence of the spending? I'm assuming DWP audit bank accounts/want to see statements and receipts?

If you (or she) puts her details into a benefits calculator, it will show what she would likely be entitled to.  One calculation with £10k savings and one with under £6k will show the difference, whether it would be the best thing or not.

numpty_dumpty

Thanks @Spoonie_Turtle. I'm a bit naive to this, can you recommend a calculator?

calcotti

https://www.entitledto.co.uk/ Or https://benefits-calculator.turn2us.org.uk/

Use both to check that you get (roughly) the same answer on both.