UC and Back payment

jessyone

Good evening

I hope someone can help me, I am very confused and sick with worry.

I have been receiving joint couple UC for a few years and I have a child who is receiving Higher rate of DLA, I was unaware that i had to inform UC of my child's DLA. During that time I suffered a mental breakdown due to many reasons and I was disengaged from life.

After some therapy and help I'm getting better I was told at a support group that I should of notified UC, so I added it on my journal earlier this year and I've received a letter informing me of my back payment, I am very over joyed and grateful, I fell off the sofa and cried. My back payment is 21 thousand pounds. Please someone help me to understand what this means for me. Will I still receive UC? Will my UC be deducted if so how much? I owe family and friends money as i did not receive UC for 14 months due to my depression and not being able to leave the house and I was so depressed I couldn't function. I owe family about 11 thousand, I have slowly start to repay them. With this money I can now give them the full amount. Can I withdraw the money, will I need to explain where its going? I need to get a few things for my child ie a bed and furnishings as she's just moved in to her own room. if I take the money out will UC question this?

I'm sorry if I've rambled on, and I would please like some advice. I've been sick with worry and the unknown.

poppy123456

Your UC will not stop because the lump sum is money you were owed. It is disregarded for 1 year from the date you received it, this means it's doesn't count as savings.

Whilst you can buy anything you want to during that time. The only thing I'm going to advise on is that you mentioned owing some family members some money. If you pay them back what you owe them then UC could ask questions about what you spent the money on during that 12 months.

Paying off debt is allowed when claiming UC, I don't think this applies to family members unless you had a formal, legal agreement at the time you borrowed the money saying that you would repay it back.

The last thing I want to do is to tell you it's fine to do what ever you want with in that 12 months, if that advice is incorrect. Especially if after those 12 months UC ask you if you have any money left because savings of more than £6,000 at that time will reduce your UC. For this reason I'm going to advise you to get some expert advice from an agency near you. https://advicelocal.uk/welfare-benefits

jessyone

Thank you Poppy for your advice, it has helped me understand. I've been aconfused, happy amd overwhelmed.

I hope you have a lovely rest of the day