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Deprivation of assets

Njai

Hi, I currently receive Universal Credit with lcwra and pip. I have inherited money that will put me over the savings threshold so will be signing off but if I pay off credit cards and catalogues etc I will be back below it again so would open my claim again. Is this ok to do?

This money is from my husband who died unexpectedly, am I right in thinking I can’t gift or put any aside for our children as that would count as deprivation of assets?
Thanks in advance!

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Comments

poppy123456

Paying off debt is allowed when claiming UC. You will need to report the savings when it’s paid into your bank but if you’re then below £16,000 your UC can continue.

For every £250 or part there of over £6,000 there’s a £4.35/month deduction.

You can give money to your children but you’re right, you will still be classed as having that money. You can’t just give your money away without it affecting your benefits.