Closing UC as savings over 16K

crazymoose2000

Hi,

I'll be receiving some inheritance in the next few days (60K), on the day this happens is it easier if I just request to close the UC claim or update my capital to be above 16K and they close it?

We will be making some large purchases and then living off the rest until savings get below 16K which would be in around 2 years time before needing to claim UC again.

Thanks in advance for any advice.

Grumpy_chap

crazymoose2000 said:

Hi,

I'll be receiving some inheritance in the next few days (60K), on the day this happens is it easier if I just request to close the UC claim or update my capital to be above 16K and they close it?

We will be making some large purchases and then living off the rest until savings get below 16K which would be in around 2 years time before needing to claim UC again.

Thanks in advance for any advice.

Inheritance received is capital.
Capital is only assessed at the end of the AP.  

Do you have any debts?  Repayment of debt is not deprivation of capital.

What are the large purchases?   Can these be incurred in the same AP as the inheritance is received?

Will having the £60k be an enabler to increased long-term income, different employment prospects etc?  Maybe if you are able to support yourself through training or similar you may be able to open up more opportunities.

crazymoose2000

Grumpy_chap said:

crazymoose2000 said:

Hi,

I'll be receiving some inheritance in the next few days (60K), on the day this happens is it easier if I just request to close the UC claim or update my capital to be above 16K and they close it?

We will be making some large purchases and then living off the rest until savings get below 16K which would be in around 2 years time before needing to claim UC again.

Thanks in advance for any advice.

Inheritance received is capital.
Capital is only assessed at the end of the AP.  

Do you have any debts?  Repayment of debt is not deprivation of capital.

What are the large purchases?   Can these be incurred in the same AP as the inheritance is received?

Will having the £60k be an enabler to increased long-term income, different employment prospects etc?  Maybe if you are able to support yourself through training or similar you may be able to open up more opportunities.

Thanks for the reply  

Have 8k of debts, will be purchasing a car 15k, holiday 10k, white goods 2k, wedding 5k.

My partner works fulltime and myself part time.

HillStreetBlues

I would just close it, it makes it less likely when you claim UC again them questioning where the money went.

peteuk

Not sure why your asking the same question again.  

Inheritance due whilst receiving UC - Page 2 — MoneySavingExpert Forum

Please dont! 

crazymoose2000

peteuk said:

Not sure why your asking the same question again.  

Inheritance due whilst receiving UC - Page 2 — MoneySavingExpert Forum

Please dont! 

I'm not asking the same question? My question on a previous thread was is it ok to spend the money!

HillStreetBlues has kindly answered my question about closing the UC account now so no need for annoying comments from you! So if you think of commenting sarky comments on other peoples threads in the future...

 Please dont! 

poppellerant

@crazymoose2000

I hope you don't mind me posting in here, but it's been just over a month since your other thread had a reply.

As already mentioned in your other thread, you need to be extremely careful regarding deprivation of capital.  Here are a few links regarding this, which I think you might find useful:

• Universal Credit: money, savings and investments - GOV.UK
• Deprivation of capital and notional capital - Shelter England

In a nutshell, you're expected to live off the savings and spend as though you were still on benefits.  You can buy essentials, such as appliances, necessities for the house (such as a carpet) and perhaps a reasonably priced car if you can prove you or your partner have a valid need for it - ie: a disability or getting to work.  Spending the money on unnecessary things like weddings and holidays is simply going to trigger deprivation of capital alarms at the DWP.

So you can use the savings as you would while you're on Universal Credit, other than the odd allowance for essentials.  These essentials don't need to be the cheapest however, as you could argue you've invested the money in quality items to ensure they last a long time.

crazymoose2000

poppellerant said:

@crazymoose2000

I hope you don't mind me posting in here, but it's been just over a month since your other thread had a reply.

As already mentioned in your other thread, you need to be extremely careful regarding deprivation of capital.  Here are a few links regarding this, which I think you might find useful:

• Universal Credit: money, savings and investments - GOV.UK
• Deprivation of capital and notional capital - Shelter England

In a nutshell, you're expected to live off the savings and spend as though you were still on benefits.  You can buy essentials, such as appliances, necessities for the house (such as a carpet) and perhaps a reasonably priced car if you can prove you or your partner have a valid need for it - ie: a disability or getting to work.  Spending the money on unnecessary things like weddings and holidays is simply going to trigger deprivation of capital alarms at the DWP.

So you can use the savings as you would while you're on Universal Credit, other than the odd allowance for essentials.  These essentials don't need to be the cheapest however, as you could argue you've invested the money in quality items to ensure they last a long time.

Thankyou for your reply, I'm hoping we may not even need to re-claim UC when it comes to it in a few years, its currently around £700 a month we receive but being able to increase my work hours in the next couple of years and not having any debt we should hopefully be ok

HillStreetBlues

poppellerant said:

@crazymoose2000

I hope you don't mind me posting in here, but it's been just over a month since your other thread had a reply.

As already mentioned in your other thread, you need to be extremely careful regarding deprivation of capital.  Here are a few links regarding this, which I think you might find useful:

• Universal Credit: money, savings and investments - GOV.UK
• Deprivation of capital and notional capital - Shelter England

In a nutshell, you're expected to live off the savings and spend as though you were still on benefits.  You can buy essentials, such as appliances, necessities for the house (such as a carpet) and perhaps a reasonably priced car if you can prove you or your partner have a valid need for it - ie: a disability or getting to work.  Spending the money on unnecessary things like weddings and holidays is simply going to trigger deprivation of capital alarms at the DWP.

So you can use the savings as you would while you're on Universal Credit, other than the odd allowance for essentials.  These essentials don't need to be the cheapest however, as you could argue you've invested the money in quality items to ensure they last a long time.

That simple isn't true for an inheritance, I've linked Case Law in OP's other thread showing it can be used for improving someone's life.