Gifting money while on UC

KB32
KB32 Posts: 10
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edited 12 January at 1:46PM in Benefits & tax credits
Hi everyone, I have a question regarding sending a cash payment to a family member to help them buy their first home.

I am currently on UC and have around £3500 in savings, I have told my relative I can give them £3k towards a deposit as long as it isn't an issue with UC. Is this likely to be a problem and could it be classed as deprivation of savings?

Just to clarify this wouldn't be a loan, I will not be expecting or asking for this money back.
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  • HillStreetBlues
    HillStreetBlues Posts: 3,099
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    As under £6k you can do what you like with the money, that includes giving it away.
    It can't be classed a DoC as it will have no effect on what you are entitled too.
    Let's Be Careful Out There
  • KB32
    KB32 Posts: 10
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    As under £6k you can do what you like with the money, that includes giving it away.
    It can't be classed a DoC as it will have no effect on what you are entitled too.
    I see, so they wouldn't be questioning me at all regarding this? The last thing I want is for them to investigate every little thing I buy or something. So even if I had for example £5900, so very close to the 6k limit, and gave away £5k they still wouldn't say anything as it is under the 6k limit?
  • HillStreetBlues
    HillStreetBlues Posts: 3,099
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    edited 12 January at 1:51PM
    KB32 said:
    As under £6k you can do what you like with the money, that includes giving it away.
    It can't be classed a DoC as it will have no effect on what you are entitled too.
    I see, so they wouldn't be questioning me at all regarding this? The last thing I want is for them to investigate every little thing I buy or something. So even if I had for example £5900, so very close to the 6k limit, and gave away £5k they still wouldn't say anything as it is under the 6k limit?
    Yes, that is also fine.

    EDIT
    They are doing UC reviews  and ask for 3 months bank statements, and I know one poster has been questioned about spending even though that poster didn't have over £6k capital.
    Myself personally who is also on UC and under £6k will refuse to  answer any questions on my spending, as legally they have no remit in asking, as it's not relevant to what I'm entitled too.
    Let's Be Careful Out There
  • KB32
    KB32 Posts: 10
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    KB32 said:
    As under £6k you can do what you like with the money, that includes giving it away.
    It can't be classed a DoC as it will have no effect on what you are entitled too.
    I see, so they wouldn't be questioning me at all regarding this? The last thing I want is for them to investigate every little thing I buy or something. So even if I had for example £5900, so very close to the 6k limit, and gave away £5k they still wouldn't say anything as it is under the 6k limit?
    Yes, that is also fine.

    EDIT
    They are doing UC reviews  and ask for 3 months bank statements, and I know one poster has been questioned about spending even though that poster didn't have over £6k capital.
    Myself personally who is also on UC and under £6k will refuse to  answer any questions on my spending, as legally they have no remit in asking, as it's not relevant to what I'm entitled too.
    Thanks for your reply, when you say UC reviews is this random or would this only happen if I actually went ahead and transferred the money?

    I already contacted them through my journal regarding this and am still waiting for a reply, I initially called them and the person I spoke to said under £6000 we don't really care what you do but also said if you spend/transfer a large amount of money, for example in the thousands then I need to tell them about it. So it was a confusing call and It feels like they don't know themselves.
  • HillStreetBlues
    HillStreetBlues Posts: 3,099
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    It's a random check AFAIK.
    The DWP helpline and work coaches aren't trained in the actual legal side of benefits. So we see a lot of wrong advice simple because rather than say "I don't know" or find someone that does  know, they just guess an answer,  so your reply  giving you wrong info is sadly what we come to expect.

    I always feel the best advice  is to give is only the DWP info you are legally required to do. EG capital over £6k.  This cuts down the the chances of DWP making a mistake and creating a whole load of needless hassle for the claimant.

    Let's Be Careful Out There
  • Grumpy_chap
    Grumpy_chap Posts: 14,430
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    KB32 said:
    Hi everyone, I have a question regarding sending a cash payment to a family member to help them buy their first home.

    I am currently on UC and have around £3500 in savings, I have told my relative I can give them £3k towards a deposit as long as it isn't an issue with UC. Is this likely to be a problem and could it be classed as deprivation of savings?

    Just to clarify this wouldn't be a loan, I will not be expecting or asking for this money back.
    Regardless of any UC position, if you gift £3k from £3.5k total savings, that will leave you with a very depleted emergency fund of only £500.  Be careful that you do not support the family member to your own detriment.
  • KB32
    KB32 Posts: 10
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    It's a random check AFAIK.
    The DWP helpline and work coaches aren't trained in the actual legal side of benefits. So we see a lot of wrong advice simple because rather than say "I don't know" or find someone that does  know, they just guess an answer,  so your reply  giving you wrong info is sadly what we come to expect.

    I always feel the best advice  is to give is only the DWP info you are legally required to do. EG capital over £6k.  This cuts down the the chances of DWP making a mistake and creating a whole load of needless hassle for the claimant.

    Yeah you're probably right, I just feel like if I don't disclose such a large amount leaving my account they'll probably be more likely to make a big deal out of it. Alas I have already sent them a message on my journal and still waiting for their response.
  • TELLIT01
    TELLIT01 Posts: 16,256
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    You can gift the money and it won't make any difference to your UC entitlement.  I would however question how advisable it is to leave yourself so short of any emergency funds.  It is your decision though.
  • tomtom256
    tomtom256 Posts: 2,198
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    As a one off it wouldn't be an issue, but if was regularly done to stay below £6,000 then it could become a problem and may get flagged via datamatching.
  • HillStreetBlues
    HillStreetBlues Posts: 3,099
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    edited 13 January at 11:23AM
    tomtom256 said:
    As a one off it wouldn't be an issue, but if was regularly done to stay below £6,000 then it could become a problem and may get flagged via datamatching.
    A person can do it as many times as  they want, there is nothing in law that would prevent this.
    It is possible that the DWP could ask where the money has gone, just in case a person is hiding it under their floorboards, but if the DWP believe that, the onus is on the to proof it.
    Let's Be Careful Out There
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