Universal Credit & Deprivation of Capital (Mortgage)

Muttleythefrog

Sadly UC agents and general staff will confidently tell things which are not true... probably a good example per week on this board alone and here we have another. As advised paying off debts whether due or not is not deprivation of capital on UC.... legacy benefits have different rules.

The rules for UC do open up possible lines of abuse by claimants (creating debts to pay off with capital etc) which has historically been discussed to death on here. What you plan to do here is legitimate and clearly within the rules.

TELLIT01

Clearing debts when you didn't have arrears could be classed as Deprivation of Capital with the old systems e.g. Income Support and income related ESA.  My understanding is that changed with the advent of UC where you can clear any debts.  One change which actually has benefitted claimants.

itsthelittlethings

Muttleythefrog said:

Sadly UC agents and general staff will confidently tell things which are not true.

As will people on the internet.

itsthelittlethings

Also, do you want to move to a conditionality regime?

itsthelittlethings

You should be able to claim New Style JSA, if you are not aware.

itsthelittlethings

What I would do, if you are wedded to this course of action, is to use part of your redundancy to pay off your mortgage, leaving yourself some slack to urgently find a job stacking shelves if necessary. Depending on your risk appetite, you can choose how much capital you want left over. Above 16k you will get no UC, below 6k you will get full.

Whiterose23

itsthelittlethings said:

You should be able to claim New Style JSA, if you are not aware.

I will be doing this, but I wanted to understand the advice he gave me regarding UC and deprivation of capital, so as not to potentially fall foul of the rule myself, should the situation arise.

andrewmp

As others have said, he's talking nonsense.

sammyjammy

HillStreetBlues said:

Many DWP staff haven't a clue and just make stuff up. We see it a lot on here, even if they stated snow was cold, I would need to check.

Sadly true, frontline staff are not trained in benefits, they have a limited understanding, enough to do their job properly, hopefully.  Can I suggest you speak to a supervisor about this person so they can be told.  If you aren't trained in that area and don't have the legislation in front of you do not advise, it drives me mad.