Universal credit and large lump sum

Elle444

Hi, I am waiting for confirmation of final amount but am expecting a lump sum payment that could be £15,000-£20,000 which would take me over the £16,000 threshold to claim universal credit which I am already on. 

Most of the money will be used to clear debts which I know is allowed under UC rules. If I report the lump sum but on the same day clear debts which would bring me under the £16,000 threshold, will my claim be automatically closed and passed to a decision maker to review and reopen? Or does it go on the amount in savings at the end of the day? 

I’m concerned as I know there isn’t a timescale for the decision and if I’ve paid the money out onto debts I’m going to end up back in debt while UC make the decision. 

HillStreetBlues

AFAIK what is important is the capital on the final day of your assessment period, so if over £16K on that date claim would close, but once below £16k can be reopened within a certain time-frame.  If outside that time-frame  then it would have to be a new claim.
So if you receive the money and use it to pay debts in your  assessment period that should be fine.

Alice_Holt

Yes, its your capital at the end of your assessment period that counts.
So try to have paid your debts at that point, to remain below £16k.
 
If above £6k at the end of your assessment period that needs reporting to UC, as tariff income will apply.

Spoonie_Turtle

I would also advise telling them (after receiving the money and clearing debts within the same period) what's happened, because when they do their data checks they'll see a large amount hit your account and go out and they'll want to know why/where it went.  But with your pre-emptive explanation they'll already know all about it so there will be no problem.  (And keep proof of where it went, obviously, just in case they want to see it.)

That said, just to check: more knowledgeable/experienced members - is there any potential problem with doing that?

HillStreetBlues

Spoonie_Turtle said:

I would also advise telling them (after receiving the money and clearing debts within the same period) what's happened, because when they do their data checks they'll see a large amount hit your account and go out and they'll want to know why/where it went.  But with your pre-emptive explanation they'll already know all about it so there will be no problem.  (And keep proof of where it went, obviously, just in case they want to see it.)

That said, just to check: more knowledgeable/experienced members - is there any potential problem with doing that?

I'm neither of those but I would inform the DWP if the money comes from a source such as inheritance via probate, as I believe the DWP does check on this, or any other payments the DWP check.
I wouldn't inform if it was a one off gift from someone.