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What can you spend your benefit money on?

LuminousVoid

Hi,

Just been awarded LCWRA. Most of my life I've had a very low income. I've adapted by living very frugally and pretty much a reclusive lifestyle. With this extra income coming in what am I allowed to spend it on?

Can I upgrade my lifestyle so its a bit more like a normal healthy person's lifestyle?

Can I put money towards a pension - or would that count as capital?

Can I invest in anything else that wouldn't count as capital?

Am I allowed to contribute towards charity?

Are you allowed to withdraw cash from an ATM or does everything have to be spent electronically so that they can track where the money is going? Are there any limits on how much you can withdraw?

Thanks for your help.

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Comments

Ironside1990

You're free to spend the money how you like. Very few places are cash only,like barbers, so if you need to take money out for that reason, then do it.

I'd advise against putting the lottery on, just in case you go over 66K, or even worse, 1616K

sarge19846

HI I've just recived my uc migration letter and people have mentioned they will look at your bank statements,I'veused a few gambling sites over the last few months and it shows on statements,will that go against me?

Kimi87

They only look at your bank statements if you are selected for a random check. No it won't go against you.

Ironside1990

I mean 16K.

poppy123456

https://forum.scope.org.uk/discussion/comment/976304#Comment_976304

See my comment on this thread here. It's better if you could stick to one thread rather than ask the same question on multiple threads because it gets confusing.

https://forum.scope.org.uk/discussion/125997/esa-to-universal-credit-migration

LuminousVoid

https://forum.scope.org.uk/discussion/comment/976289#Comment_976289

I just prefer using cash where its still accepted. Old school like that.

peters77

It's your money to spend how you see fit on you life as needed.

letitbe

https://forum.scope.org.uk/discussion/128873/what-can-you-spend-your-benefit-money-on

I get pip and LCWRA and I can impulse spend hundreds when I’m stressed , I also spend loads on binge food when my bulimia is bad. It really stresses me out because it makes me feel really guilty that it’s a waste of my money but I really can’t help it.

OverlyAnxious

Hi,

Yes, you are allowed to upgrade your lifestyle.

Any money in a pension pot is not counted as capital. So you can start adding to one of those if you like.

Money in other investments are counted as capital.

You are allowed to donate money to charity.

You are allowed to draw out cash from an ATM.

However… The rules around deprivation of capital are not clear cut. Technically, if you spend any money for the purpose of keeping your capital down, that is classed as deprivation and you will be treated as still having that money. But they don't say specifically what you are and aren't allowed to do or give any specific numerical limits on spending amounts. If they believe deprivation of capital has occurred, it will be passed on to a decision maker to review the evidence and they decide whether it was deprivation or not.

LuminousVoid

https://forum.scope.org.uk/discussion/comment/976601#Comment_976601

Thank you for answering my questions.

Jimm_Alumni

OverlyAnxious has spelled it out very well. You can generally spend your money how you wish. It after all is your money.

But there can be cases where spending a lot of money could constitute deprivation of capital, this would depend on what you are spending it on.

letitbe

https://forum.scope.org.uk/discussion/comment/976985#Comment_976985

what would a significant amount mean jimm ? Would it be thousands or hundreds ? I impulse spend and can spend a few hundred at a time

OverlyAnxious

I would respectfully, slightly disagree with that statement.

If you had £6045 the day before the end of a UC payment period, and spent £50 of it on anything that you wouldn't usually buy (or gave it away, drew it out as cash, or donated it to charity), that could be classed as deprivation of capital.

It is all about the intent, to keep below savings limits, rather than the amount.

Jimm_Alumni

Actually, I do believe @OverlyAnxious is correct there and so amended my comment. It is the intent behind the spending of the money, regardless of amount. When you mention impulse buying, you are not doing that simply to stay below any threshold.

letitbe

https://forum.scope.org.uk/discussion/comment/977473#Comment_977473

ok thx Jimm .
My impulse spending is part of my MH condition, I hate it because I end up with things I don’t need or want and that’s stresses me more after a few days of having them then most of them end up going to charity .

letitbe

https://forum.scope.org.uk/discussion/comment/977714#Comment_977714

I think I remember you have BPD Catherine ? It’s also what I have, it’s so horrible, can be in bed for days on end and isolate from people , then get so overwhelmed emotions all over the place . This isn’t a life it’s just torture sometimes .

letitbe

https://forum.scope.org.uk/discussion/comment/977745#Comment_977745

thx .

Yes so horrible , it had massive impact on every relationship ( friends and everything ) I have 1 friend left after everyone else let me down and I pushed them all away . It’s like living in constant state of alert that everyth8ng will go wrong at any moment

letitbe

https://forum.scope.org.uk/discussion/comment/977807#Comment_977807

that’s so true like feeling everything really deeply and getting affected by everything but then getting really frustrated and angry coz not able to regulate everything and it all gets too much to handle so best to isolate most days away from this world.
always feeling judged and criticised
thx Catherine for replying

letitbe

https://forum.scope.org.uk/discussion/comment/977818#Comment_977818

oh I’ve also been on eBay and Amazon today

letitbe

https://forum.scope.org.uk/discussion/comment/977818#Comment_977818

Do you have lots of creams and eye creams ? X

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