Benefits Calculation

Just looking for confirmation I'm not missing anything obvious or things I should think about as our circumstances change.

Currently in receipt of:
U/C with LCWRA (me) and Carer Component (Wife - my carer) and housing costs (maintenance fees for our flat)
PIP and Contribution based ESA (Support Group)
Council Tax Support (the max 75% reduction)

Circumstances changing - notable inheritance coming which will eliminate means tested benefits.
Neither of us currently work.

Am I correct in saying?

U/C will be totally lost and is it best to simply close this claim or report savings >£16k?
PIP and Contribution based ESA (Support Group) will remain in payment
Council Tax Support will be lost 

My wife could claim Carers Allowance (cares for me >35 hours and has no earnings from work)?

Anything else major I should think about? Obviously minor things like free NHS dental treatment (which is not accessible anyway in our county) and prescription fees I have in mind. We intend to simply replace the lost benefits with interest on savings.

Crazy question to add - if in the distant future we spent all our funds on moving home (i.e. selling and buying a new home to live in) would Universal Credit consider this not a deprivation of capital on the basis we have have shifted rather than deprived the funds to asset not included for capital consideration?

Thanks in advance.
"Do not attribute to conspiracy what can adequately be explained by incompetence" - rogerblack

Comments

  • HillStreetBlues
    HillStreetBlues Posts: 3,100
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    edited 1 November 2023 at 3:26PM

    Crazy question to add - if in the distant future we spent all our funds on moving home (i.e. selling and buying a new home to live in) would Universal Credit consider this not a deprivation of capital on the basis we have have shifted rather than deprived the funds to asset not included for capital consideration?

    Thanks in advance.
    Certainly not a crazy question :) no it wouldn't be as you still have the capital  it's just disregarded, so there is no deprivation.
    With that I'm assuming you're not going to be buying a luxury mansion. solely to claim income related benefits.
    Let's Be Careful Out There
  • Muttleythefrog
    Muttleythefrog Posts: 19,691
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    edited 1 November 2023 at 3:40PM

    Crazy question to add - if in the distant future we spent all our funds on moving home (i.e. selling and buying a new home to live in) would Universal Credit consider this not a deprivation of capital on the basis we have have shifted rather than deprived the funds to asset not included for capital consideration?

    Thanks in advance.
    Certainly not a crazy question :) no it wouldn't be as you still have the capital  it's just disregarded, so there is no deprivation.
    With that I'm assuming you're not going to be buying a luxury mansion. solely to claim income related benefits.
    Thanks :) Highly unlikely...lol... we have a modest flat which aside from lack of space (I still don't have space for a wardrobe) ticks every box which no mansion around could ever do. More a case of if interest rates collapsed and (existing above) benefits collapsed could we find a way to sustain living if unable to work.
    "Do not attribute to conspiracy what can adequately be explained by incompetence" - rogerblack
  • Yamor
    Yamor Posts: 316
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    edited 1 November 2023 at 8:55PM

    Crazy question to add - if in the distant future we spent all our funds on moving home (i.e. selling and buying a new home to live in) would Universal Credit consider this not a deprivation of capital on the basis we have have shifted rather than deprived the funds to asset not included for capital consideration?

    Thanks in advance.
    Certainly not a crazy question :) no it wouldn't be as you still have the capital  it's just disregarded, so there is no deprivation.
    With that I'm assuming you're not going to be buying a luxury mansion. solely to claim income related benefits.
    There is clear case law that exchanging one form of capital which counts for UC for another form of capital which doesn't count can be deprivation (see R(SB) 40/85).

    Unfortunately, you don't even have the "get out" of Reg 50(2)(b) (which states that the purchase of goods or services reasonable in your circumstances will not be treated as deprivation), as property is not a good or a service.

    So, the only question left would be whether it was done in order to secure entitlement to UC, and if yes, then you would have a problem.
  • Muttleythefrog
    Muttleythefrog Posts: 19,691
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    edited 1 November 2023 at 10:13PM
    Yamor said:

    Crazy question to add - if in the distant future we spent all our funds on moving home (i.e. selling and buying a new home to live in) would Universal Credit consider this not a deprivation of capital on the basis we have have shifted rather than deprived the funds to asset not included for capital consideration?

    Thanks in advance.
    Certainly not a crazy question :) no it wouldn't be as you still have the capital  it's just disregarded, so there is no deprivation.
    With that I'm assuming you're not going to be buying a luxury mansion. solely to claim income related benefits.
    There is clear case law that exchanging one form of capital which counts for UC for another form of capital which doesn't count can be deprivation (see R(SB) 40/85).

    Has this 'old' case law (or other) been used in U/C in relation to property (sole - to live in) purchase that you know of?
    I'm just reading through the medium.com article which is very interesting but can only find one property related case they refer to and it is a more complicated scenario although interestingly the fact they had been advised in advance they'd lose benefit (IS) if they proceeded with their actions but did so anyway implied they did not do so for gain of benefits. U/C tend not to take decisions in advance - although just in the last 2 weeks despite an agent saying on our journal a Decision Maker could only take a decision retrospectively (regarding an absence from country) a DM actually stepped in hours later and gave a helpful decision. All theoretical I suppose because it's unlikely to arise in our case and the merits of individual cases will be crucial.
    "Do not attribute to conspiracy what can adequately be explained by incompetence" - rogerblack
  • Yamor
    Yamor Posts: 316
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    Muttleythefrog said:
    Has this 'old' case law (or other) been used in U/C in relation to property (sole - to live in) purchase that you know of?
    I do not think there are any UC decisions in this area, but the Sweet and Maxwell law books (written by ex Upper Tribunal judges) refers to the old case law in the commentary to the UC Regulations, and assumes as a matter of fact that it would apply to UC.
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