UC Evidence of reduction in capital

HI1978

Hi There,

So in September my house sold and I received £47k in equity of which I owed £28k in debts (these were with in default or with debt collectors) I also had to pay a friend back who lent me the first months rent and deposit (she is my guarantor - I also have the receipts) so I had about £20k left. I needed to buy another car as we had moved miles away from my work and the banger I was driving was not going to do the distance. Once I bought furniture etc I had about 12k left. I applied for UC end September once everything had been paid off and was awarded my first payment last week - they reduced my award by £120 per month due to the 6k over limit. So I let them know that my savings has reduced by a further 3k to paying rent x 2 plus the other expenses of paying for the house. They asked me to take in my statements from 28th September to this week which I did. However as they are bank printed they have the large sum coming in and the debts being paid off. I am sick with worry that they will think I have deprived myself of capital!!

IndignantPigeon

Best to explain everything to them as you've done here, hi. Make sure you have evidence from debt collectors etc so they can see it if needs be. Also would be helpful if your friend could provide in writing the reason for you paying him. Best of luck, they can be reasonable if you explain everything clearly. Don't feel as if you are guilty, you don't look as if you've done anything wrong, not splashed out a fortune on jewels or a cruise around the Med, so approach it with that frame of mind. If you get too anxious and appear "guilty" they might think you're hiding something and be harder on you.

Rosie_Scope

Hi @HI1978, welcome to the community. Sorry to hear you're feeling so stressed out about what's going on. It's never feels good having your banking history looked at by strangers.

I think IndignantPigeon is right here, it's best of be as honest as you can about your history. If you're able to provide clear evidence of your spending and explain what's happened, hopefully they can see it for what it is.

Fingers crossed it's all straight forward and everything gets sorted quickly!