Deprivation of capital and universal credit
Comments
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No, that sort of thing should be fine. A holiday should also be fine, either at home or abroad, to answer your previous post.
Remember the main thing about deprivation is the intent behind it. So if you are just getting rid of money on something you don't need or want, that is deprivation. But if you are getting something good out of it, then it's not deprivation. For example a holiday could be good for your health. New clothes could improve your mood or confidence. 🙂
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thank you I have had a look at esa and would not be entitled as having not worked for 3 or so years I haven’t paid national insurance contributions it’s all very confusing I don’t want to end up losing flat because uc is stopped. I guess after using savings for rent bills etc my savings would decrease then reclaim this is all stressing me out no end tbh 😳
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I think Poppy is saying we can claim New Style ESA without having worked, but that we will not get payments for it, only 'credits'. Those credits mean that we could go straight back onto LCWRA without needing another health assessment.
That is news to me but I'm sure Poppy will confirm when she reads this.
£16k is quite a lot of money. That should cover several months worth of rent & bills for a single person. So you shouldn't be at risk of losing the flat any time soon if that's any comfort.
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I am going to have to go through the process of declaring more savings and will have to go through them checking all my bank statements last year I had to pay 750 legal fees to a firm of lawyers it’s a long story tbh will they question that payment also my father gifted me some money when I moved into new flat then obviously some big purchases to furnish flat. I moved in from supported accommodation for people with mental health issues
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Yes, it applies in this case due to the capital being more than £16,000. It will only be included in the claim within 6 months if UC ends to due earnings. See link.
LCW / LCWRA on reclaim
Where a claimant’s level of income or earnings increases so that it exceeds their
Universal Credit entitlement, their claim is closed. Where that claimant had been
determined as having limited capability for work (LCW) or limited capability for
work and work related activity (LCWRA), and becomes entitled again to
Universal Credit within 6 months of the previous claim ending, that determination
remains valid providing:there has been no change in the claimant’s health condition or disability;
and
the date set for a review WCA has not passed( as you can see the above copy and paste from that link refers to earnings, rather than capital)
If you get close to the capital maximum limit then you should claim NsESA before your UC ends. If you wait until UC ends the WCA decision no longer applies.
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As I advised, all LA's have their own rules for CTR so you will need to check the limits on their website. If your capital is more than £6,000 yes you will need to contact them.
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No, not at all. DoC would be something like buying the most expensive car, holiday or giving your money away. Buying everyday things like clothes, household goods/furniture is perfectly fine, providing it's not the most expensive things of course.
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That's great, thanks very much Poppy. I will probably need to do exactly that at some point next year, unless I am able to move to a more suitable property in the meantime. 🙂
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what if the reclaim is more than six months of previous claim do you have to start a whole new claim ? Thanks poppy for guidance
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@OverlyAnxious you're welcome.
@kingston if your UC ends due to excess capital then you will need to make a completely new claim, even if you reclaim before the 6 months.
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what a mess makes me wish I’d never saved now I have some friends who receive the same amount of benefits I do and they spend the whole lot on shopping and going out
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when making a new claim I assume they will want to see bank statements to see how you’ve spent the savings/capital
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They will most definitely want to see bank statements when you reclaim in the future.
That's because you can spend them on anything you want to, there's no rules against this. Don't forget you may not have many bills but this doesn't mean someone else is the same.
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thank you for the guidance poppy I’m going to ask my mental health support worker to help me sort this out
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I've just read a post in another thread saying that NS ESA still has to be claimed by phone. If that's true, I'm stuffed again. 😕
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hi poppy
I am trying to do some research on new style esa in regard to reaching excess capital and reclaiming UC when my savings are down again. I have logged onto government gateway and have checked NI contributions and it says credits have been added. Does this mean I can claim ns ESA before my UC ends? Forgive my confusion I’m just trying to do things right. My mental health workers are just saying to spend on household goods holiday cooker etc but I know I will reach £16k at some point soon.
esa
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The NI credits will be from claiming UC and these are class 3 only and are only helpful towards your state pension. They do not give entitlement to New style ESA.
If you haven't worked in the previous 2 tax years then you will not qualify for payments for ESA but you'll be entitled to NI credits based on LCW. By claiming ESA before your UC ends in the future due to excess capital then when you come to reclaim UC in the future you will not need to go through another work capability assessment. You'll be entitled to the LCWRA element from the start of your claim.
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ok thank you poppy
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No problem.
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similar situation ,started UC in March 2021,end of september 2021 my mothers house was sold so I would have inherited over £30.000 but here’s where I’m stuck after receiving the inheritance it was paid shortly after to my brother as my mother had already given my children over £30.000 for house deposits before she died and that was my inheritance ,their was no will ,but my children have proof and would give statements to the effect of what was said and the amounts the received so would my brother ,thanks
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