Universal Credit

olivia009
olivia009 Online Community Member Posts: 15 Listener

Hi,

I received some inheritance in March that took me over the 16k threshold. I was having serious mental health problems at the time and was off work with stress.

My question is I failed to make this a change of circumstances due to my mental state. I’m panicking now, I want to obviously rectify the situation but frightened they’ll think I’ve done it intentionally and I get done for fraud.

Any ideas how to handle this situation I’m in a serious state of panic right now!

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Comments

  • poppy123456
    poppy123456 Online Community Member Posts: 62,453 Championing

    You need to report a change of circumstances on your journal if you have access to one and tell them you have more than £16,000 in capital, if you still have that. Then put a message on your journal and tell them what date exactly your capital went above that amount.

    Telling them yourself is so much better than them finding out, which they will because it was an inheritance. You'll have a small £50 fine on top of the overpayment, which will need to be repaid back.

  • olivia009
    olivia009 Online Community Member Posts: 15 Listener

    ah thank you so much, I’ve done just that. I explained everything, explained it was a genuine mistake due to my mental state and offered to pay back the amount owed.

    Will this be ok? I’m really in such a state over here 🥺

  • olivia009
    olivia009 Online Community Member Posts: 15 Listener

    ah thank you so much, I’ve done just that. I explained everything, explained it was a genuine mistake due to my mental state and offered to pay back the amount owed.

    Will this be ok? I’m really in such a state over here.

  • olivia009
    olivia009 Online Community Member Posts: 15 Listener

    I did it through report a change in circumstance…it had me input the date the changed happened -so I put the date in March, then wrote a note on my journal is that correct?

  • olivia009
    olivia009 Online Community Member Posts: 15 Listener

    My inheritance went into a savings account, not my bank account. Should this pose a problem?

  • poppy123456
    poppy123456 Online Community Member Posts: 62,453 Championing

    Then you've done everything correctly. It doesn't matter where it is, it will still be treated as capital. Do you still have over £16,000?

    Please be aware that they will very likely as you to send bank statements.

  • olivia009
    olivia009 Online Community Member Posts: 15 Listener

    yeah it’s 18K, how far back will they go with the statements? It’s absolutely fine I’ll provide them obviously

  • poppy123456
    poppy123456 Online Community Member Posts: 62,453 Championing

    Very likely from when you received the inheritance.

  • olivia009
    olivia009 Online Community Member Posts: 15 Listener

    ah ok, no worries thank you for all your help. You’ve been amazing

  • olivia009
    olivia009 Online Community Member Posts: 15 Listener

    I have also stupidly not realised that any capital above £6k needed to be declared! I was focussing on the 16k figure. God this system is a minefield…am I going to get in serious trouble?!

  • olivia009
    olivia009 Online Community Member Posts: 15 Listener

    I have just written this in my journal

  • olivia009
    olivia009 Online Community Member Posts: 15 Listener

    supposed that doesn’t matter as I was over the threshold with my inheritance anyway?, I’ve made a journal entry about it anyway like you said next to be up front

  • poppy123456
    poppy123456 Online Community Member Posts: 62,453 Championing

    There’s a £4.35/month deduction for every £250 or part thereof over £6,000. You are correct that it doesn’t matter when you have more than £16,000. Unless you had more than £6,000 before you had the inheritance.

    Are you also claiming council tax reduction? If so then you’ll need to report the changes to your local Authority as well and you’ll have an overpayment for that too.

    You will need to repay everything you owe.

  • olivia009
    olivia009 Online Community Member Posts: 15 Listener

    Ok looking at my statements I had £8k the month I received my inheritance but I don’t understand the assessment period? As my inheritance went in that month?

    Then all subsequent months the inheritance will cancel out… I get basic element and child element no council or housing.

  • poppy123456
    poppy123456 Online Community Member Posts: 62,453 Championing

    Assessment periods last for 30 days each month. Your UC payment is then 7 days later. What date do you usually receive your money each month?

    You need to tell them when your capital went above £6,000.

  • olivia009
    olivia009 Online Community Member Posts: 15 Listener

    oh god I’m looking at it now and it goes back months! I’m really panicking now! I focussed on the fact I didn’t have £16k not the £6k figure!

    Assessment period is 10th-10th I didn’t have more than £6k when I started the claim.

    Am I going to get investigated or should I just add change of circumstances for all the months I’m over £6k?

  • olivia009
    olivia009 Online Community Member Posts: 15 Listener

    In July 2023 I took out a loan to pay off debts, should’ve I reported that as well? Oh god this is such a mess!

  • olivia009
    olivia009 Online Community Member Posts: 15 Listener

    should I just report all changes now? I’m really really panicking

  • poppy123456
    poppy123456 Online Community Member Posts: 62,453 Championing

    Paying off debt is allowed when claiming UC. Provided you took out the loan and paid your debts off within the same assessment period it will be fine. Although you should have reported it when you received that loan and then report it again on the last day of that assessment period, if you paid off your debts you would need to tell them.

    Your assessment periods will likely be 10th to 9th of every month and not 10th to 10th. This means your UC entitlement is based on your circumstances on the 9th of every month.

    As this is a complicated situation it would be better for you to get some expert advice from an agency near you. This link will help you find what’s local to you. https://advicelocal.uk/welfare-benefits

  • olivia009
    olivia009 Online Community Member Posts: 15 Listener

    Ok thank you so much, my bank goes from the 15th-15th so I’m assuming it’s what is in the balance I need to declare? Or just the period from the 10th-10th?


    shall I still report everything from July 2023, it’s 7 months that I haven’t changed or declared over £6k?