Gifting money while on UC

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  • Spoonie_Turtle
    Spoonie_Turtle Posts: 8,380 Forumite
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    KB32 said:
    tomtom256 said:

    Shelter sum it up quite nicely and although it reference UC, it would be hte same for all means tested benefits https://england.shelter.org.uk/professional_resources/legal/benefits/universal_credit/universal_credit_capital_rules

    Deprivation of capital and notional capital

    Claimants can be treated as having capital that they have deprived themselves of with the intention of becoming entitled to universal credit or increasing entitlement.

    Deprivation can mean that someone has purposely spent or given away their capital, or failed to acquire it. The DWP must show that the claimant's significant purpose was to become entitled to universal credit or increase their entitlement, even if it was not their main purpose. For example, the main purpose of someone giving their capital away to a relative might be to benefit the relative, but a significant purpose could also be to reduce their capital so that they are entitled to universal credit.

    Claimants have not deprived themselves of capital when it has been used to:

    • pay off or reduce a debt

    • pay for goods and services if the purchase was reasonable in the claimant's circumstances



    Hmm so it could be an issue in my case, it really is as clear as mud. I bet some people get away with it and others don't 
    It won't be an issue because whether you have the money or give it away makes no difference to how much UC you're entitled to.

    DoC is only an issue if someone's deprived themselves of capital they already have (i.e. over one of the £6k/£16k thresholds) in order to increase benefit entitlement.  Which does not apply in your case.
  • KB32
    KB32 Posts: 10 Forumite
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    It's been 2 weeks and still no response from them, I'm wondering if I should poke the bear..
  • HillStreetBlues
    HillStreetBlues Posts: 3,196 Forumite
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    KB32 said:
    It's been 2 weeks and still no response from them, I'm wondering if I should poke the bear..
    If it was me I would make a further entry if it was playing on my mind

    "I have sort advice of my question dated (insert date) and found the answer that I don't have to declare as my capital is below £6k, That question needs no further reply, thanks"
    Let's Be Careful Out There
  • skoobs123
    skoobs123 Posts: 2 Newbie
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    KB32 said:
    It's been 2 weeks and still no response from them, I'm wondering if I should poke the bear..
    I’m in this exact position now, wanting to gift my mam £4,000 but don’t know if it’s allowed. Have you had a reply 
  • peteuk
    peteuk Posts: 1,312 Forumite
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    skoobs123 said:
    I’m in this exact position now, wanting to gift my mam £4,000 but don’t know if it’s allowed. Have you had a reply 
    Are you or your mum claiming means tested benefits. 

    If you are and you give away £4K it will be treated as you still have it, this is to avoid claimants hitting or getting close to  the £6K or £16K thresholds and simply giving it away to retain their benefits. 

    If you Mum is claiming means tested benefits then although Im not sure but I believe its not classed as income, however should be declared.  At some point if not spent then it ay well become part of their capital and so again works towards the £6K or £16K threshold.
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