I'm so stressed and worried about this mess

swesty212

I have a  a mess on my hands... i feel very stressed about this and want to resolve it with as less stress as possible.

I hope to get some advice.

I have been overpaid uc and esa since February 2024, 

Out of the blue in February, i recieved some inheritance from grandparents who passed away within 9 months of eachother. 

It was over the 16k . I wasnt expecting to receive anything as my relationship with my grandparents wasnt great.

I need to explain my situation a bit clearer. Ive suffered mental health problems for many many years, inc hospitalisation a few times. I will always be on medication etc.

 I struggle to deal with change and have always relied on UC.

the inheritance gradually came in over around 7 months, and went over the threshold in early February. I felt a bit overwhelmed about the inheritance and due to being quite compulsive with money in the past i was quite scared of coming off UC without a job etc.

I hadnt worked since early 2017 and i will share that my mental health really went down hill between 2017 - 2021. 

So after recieving the inheritance i took some advice about how to try and manage things.

A friend supported me and helped me get a job, which i have been doing since early july 2024, its been very stressful at times but im just about coping with it, although it takes a massive amount of my mental energy just to do a basic job.

That a bit of the story of where iam, ive been panicking since working as i have still recieved UC in various amounts due to wages, i thought it would just stop and i could sort out the period between feb and july. The whole thing is causing me a set back and i dont know how to sort it without bringing a lot more stress on myself..

I just had a look and id have to back pay many thousands.. since feb 2024.

Am i going to be in trouble, i havent frauded anybody, it just be so many changes in a short space of time and dealing with it all has me vert consumed. 

I hope someone can help

poppy123456

You mentioned ESA and UC. If you're claiming ESA as well then the ESA will be New style ESA and this isn't means tested so capital does not affect the amount you're entitled to.

UC is means tested and capital of more than £16,000 means no entitlement to any means tested benefits.

If you're also claiming council Tax reduction then this will be affected to. Some Local Authorities have a maximum capital limit of £6,000 before entitlement to Council Tax reduction ends.

I'd advise you to report the changes and be honest with them because this will be better for you. Yes, any overpayment will need to be repaid back and there will be a small fine of about £50 on top for not reporting the changes. It's always better if you tell them, rather than them finding out and they will eventually find out.

Do you still have more than £16,000 in capital? For capital of between £6,000 and £16,000 there's a £4.35/month deduction for every £250 or part there of over £6,000.

swesty212

Thank you for replying, ive emailed citizens advice as well. As im worried about getting in trouble.

I've taken up 35 hours work since July, which is a struggle due to my Mental health but I'm determined to persist and try to take care of myself as much as possible.

I feel like I've left things late, but I didn't know what to do. I have most of what would be owed back to the UC.

Yes I had a surprising amount of inheritance in a few parts, due to some being from my grandads side of things, then my nan died too so theyre estate got split between relatives. which scared me, so I took advice from a friend who said to put it into isa and savings accounts.

I thought due to me working, I wouldn't recieve UC, but they seem to have been still paying it even though I'm earning enough to not recieve it.

I looked this month and they're due to pay again..

I thought esa was part of the UC, and obviously now I'm working, all benefit would stop.

Ive let it go on and if they ask for everything back, I'm looking at 9k!!

Will I have to pay the whole back in lump sum? The inheritance I have is in long term isa and savings account, so I just can't blow it of I get manic.

carbow32

Please let them know and use the inheritance to pay them back.

carbow32

carbow32

poppy123456

Capital counts where ever you keep it, whether it's in a bank account, savings account, ISA, at home etc etc. The only time it's ignore is if it's in a pension pot and you're under state pension age.

ESA is a completely different benefit to UC. Yes, you will need to pay the overpayment back to them. You can arrange a payment plan or pay it off in a lump sum.

Do you still have capital of more than £16,000?

swesty212

I will contact universal credit tomorrow,

Yes the capital is larger than 16k, like I say it came in at different times and I didn't know what it would be, it went over 16k in Feb 2024 and all way paid in by the end of April.

I was looking to get back into work for a year prior to this, but was waiting on more talking therapies, which didn't end up happening, well they did offer something a year later but I'd just started work and can't fit it in around work now..

I just don't want it to look like I was trying to get away with something, when I wasn't, I didn't know the Inheritance would happen and I didn't know what to do.

I had to buy a car so I could get to work, then I had another payment from the solicitors

poppy123456

Just report the changes and be honest. You will very likely be asked to provide back statements too.

Are you claiming council tax reduction?

swesty212

I think the council tax was sorted out when I started work, I only get the single persons reduction now

poppy123456

If your capital went above £16,000 in February, you said you started working in July so there will be some Council Tax to repay back from Feb. Single person discount isn't affected by capital.