Will it be deprivation of capital?

My marriage is not in the best place and hasn't been for a while and it's getting to the point it may be close to the end for it. 

I work but part time around school runs etc so not the highest income. I will need to think about housing for me and my two children. The issue is, I have around 30k from an inheritance in savings. In an ideal world this would have been a deposit on a future house but I guess life doesnt always work out!  My wages would nowhere near cover private renting on top of actually living (the area I live in I'd be looking at around 1200 at least a month)  so in reality I would be using my savingss to pay for the rent in advance and then ongoing rent.

I know you cannot claim universal credit or housing benefit with savings over 16k but i want to know if after the period of time where my funds have been used to cover rent and gone below 16k, would I then be eligible? Or would spending it on rent (where I have no other option as wages aren't high enough) Be classed as deprivation of capital?  

I am assuming I would need to private rent as I am anot sure if that amount of cash savings would make me ineligible for a council property. 

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