Gift/Loan from a parent while claiming universal credit?

VicLud

Hello all. New here and in need of a little advice. Last month I let slip to my aging parents that I had some debts and had set up a DMP through Step Change. My dad was furious and told me to close the debt plan and he would give me the money to clear the debts. He made a bank transfer into my current account and within a matter of minutes/seconds the £10k gift/loan was gone and all debts were clear. I agreed to repay my dad as much as I could each month until the money I owe him is repaid. I am not currently working and am in receipt of universal credit with an LCWRA status until February 2026 when this will be reviewed. I have just had to provide bank statements and ID for a universal credit review and it has just occurred to me that perhaps I should’ve declared the money even though I had it in my account for only a few hours. Should I have declared it and what happens next is my main question? I feel like perhaps I should put a note on my journal today explaining the money or will it not matter? Feeling a bit confused and anxious over the whole thing now as I hadn’t given it a thought until I downloaded the bank statements they had requested.

born_again

If it is in the same AP & was used to pay debt off there should be no issues. Although it is something they may ask as part of the review. For which you have the answer for.

Robbie64

What matters for UC is what you have in the bank at the end of an assessment period. Money going into, and quickly out of, your account shouldn't be an issue. If it is queried, just tell UC what you have posted above about being in debt and your dad lending you the money to clear those debts. Debt repayments aren't treated as deprivation of capital, so paying those debts isn't a problem. 

VicLud

Thank you for quick responses. I didn’t even think at the time that it’s something I should tell them about but will obviously face any consequences should they decide I did do something wrong. I have also sold a few bits on eBay recently but was advised that as they are my personal unwanted possessions they also wouldn’t be considered income. Much appreciated for the help though. Thank you

Newcad

Just to add - I wouldn't expect your LCWRA to be reviewed next February. It has no end date and will simply carry on until it is reviewed- however:

The assessors are currently backlogged, again, and are only doing new claim assessments at the moment.

(That has actually raised a concern because if you are LCW and want/need to be reassesed for LCWRA it just isn't happening. There is a thread on Rightsnet about it).

And a PS- They have finally got around to combining the ESA50 and UC50 forms. - The new form is called a WCA50 and should be available from November. ( but the old forms can/will still be used to avoid waste).

peteuk

The only thing I would add, is if you look like your coming up to the £6K or £16K limits in the future and suddenly you pay back you parents, is make sure youve got something to prove its a loan from them.  In case it comes back and bites you.

Brie

Have you dealt with the reason for getting in to debt?  Hopefully you have or it was some bizarre emergency one off that is unlikely to be repeated.  

You might find it helpful to do a budget for yourself if you do struggle and money is tight (often the case when on benefits).  To put something together I'd suggest you look at the statement of accounts that is used on the debtfree wannabe board.   There's a link to it in my signature below......  If you need any advice on budgetting I'd suggest posting that back on the debtfree board and people will have ideas to help tighten things up for you.