Hi, my name is Nad13!

Nad13

Hi!

Just wanted to ask for some advice about my recent claim review.

Abit of background about myself- I am a single mother with 2 dependent children and I am a carer. I am unemployed due to my caring responsibilities (only have carers allowance and child benefit to live off- how will I survive? I am stressed and this is giving me a lot of anxiety).

During my interview I declared I have a second home in which close family members live. Due to this they have stopped my payments.

When I signed up for UC in August 2021 I called the UC number and Citizens Advice to find out about my second property before doing my claim and I was advised at the time that if a close family member is living in a second property I own, its value is disregarded when calculating my Universal Credit entitlement.

I have asked for a mandatory reconsideration.
Can someone advise me?

Kimmy87

There are some specific disregards, does your situation fit?

If you own a property and live in it as your home, the capital will be disregarded. There are certain circumstances that a second property can be disregarded as capital (see below)

Premises lived in by a close relative

Premises that are occupied as a home by a close relative are disregarded indefinitely if it is their only home and the close relative has:

Limited Capability for Work, or

has reached the qualifying age for State Pension Credit

A close relative means:

parent, parent-in-law, son, son-in-law, daughter, daughter-in-law, step-parent, step-son, step-daughter, brother, sister

or where any of the above is a member of a couple, the other member of the couple.

The official regulation is sch 10, paras 2-3 Universal Credit Regulations 2013/376. 'Close relative' is defined in reg 2 Universal Credit Regulations 2013/376.

Nad13

Hi Kimmy!

My aunty and uncle live there. They are below state pension age. But that was what I was advised that the time when I called them to double check.

Kimmy87

Unfortunately the UC helpline is little more than a call centre with staff reading from a screen.

I see you were also misadvised by Citizens Advice.

I'm really sorry it seems an Aunt/Uncle is not classed as a close relative, so the property cannot be disregarded. They are also neither retirement age or limited capability for work.

Shelter:

https://england.shelter.org.uk/professional_resources/legal/benefits/universal_credit/universal_credit_capital_rules#disregarded-capital

Link to the regulation:

https://www.legislation.gov.uk/uksi/2013/376/schedule/10

Nad13

Well I went on the advice that I was given at the time. So where does that leave me now?

Kimmy87

I appreciate that.

I think it's left you in a very difficult situation.

If the property cannot be disregarded, then you were not entitled to UC when you applied, and have been overpaid.

Under UC rules all overpayments are recoverable even when it's UC that made the mistake. So potentially UC would look to recover the money they've paid you.

I'd recommend you find a local solicitor who offers a free half hour.

If you were to put the property up for sale, it can be disregarded in terms of calculating your UC capital for 6 months, with Decision Maker discretion to extend that.

Nad13

i cant put the property up for sale and make the family homeless. Whats the point of getting advice from UC if they give the wrong information. Why should we be held accountable?

Kimmy87

I agree the advice given out by UC is woeful at times- seen many bad examples on the forum.

Nad13

How am I ment to survive on just carers allowance and child benefit? And how would they expect me to pay them back? Thats just ridiculous!!!

Kimmy87

In their eyes you have a financial asset in the second property, and would be expected to use that asset before claiming UC which is a means tested benefit.

If the house was put up for sale, it can be disregarded for a minimum of 6 months which would see your payments resume, the debt could be repaid from the sale and the remainder of the money could be used to support you financially.

You could claim UC again when your capital goes below £16,000.

I wish you luck in sorting it all out.

Albus_Scope

Welcome to the community @Nad13 I'm sorry to hear you were given some bad advice by UC though, that's horrible. Are the family members paying you any rent for living in your other property? If not, would they be able to?

Nad13

Hi

Albus_scope- I know I cant believe it that they have given me the wrong advice!!! No the family members are not paying me rent, they are just getting by like everyone else.

Kimmy- thanks for your replies, I really appreciate them!
I know it’s a mean tested benefit which is why I got advice before applying, otherwise I wouldn't have applied!!

Lets see now, I have asked for a mandatory reconsideration and hoping someone who has empathy and compassion takes my circumstances into consideration. As I will only have carers allowance and child benefit to survive on which is roughly just over £400 plus caring for someone and 2 dependent children!!!

Nad13

Hi,

They have now closed my claim. But I have already asked for a Mandatory Reconsideration and they have acknowledged that someone will look into this and get back to me in 1-2 weeks in my journal. Will they get back to me on my journal even though they have closed my claim? And will I still get an email notification that I have something to check on my journal?

Thanks

Albus_Scope

Sorry to hear that @Nad13 did they give you any reason for closing he claim? It'd be worth giving them a call first thing on Monday to ask what's going on as I'd be unable to say.

Nad13

Hi,

They've closed it because they are saying my capital is over £16,000. And therefore im not entitled to UC due to my second home where my family live. If you can please read my thread you will get all the background information.
I don’t even feel like calling them as they always give the wrong advice!!! But it already says on my journal that my claim has gone to a decision maker after I called them twice and was told their systems are done. And then suddenly saw on my journal that they had done the mandatory reconsideration themselves!

Thanks

WhatThe

Hello Nad. What a horrible shock but I'm sorry to say DWP doesn't do empathy or compassion. It rarely admits error. As a property owner, this remains your responsibility.

If UC has asked for repayment then speak to your lender and get yourself qualified legal advice. Nobody can live rent-free so that's a conversation to be had with your relatives.

We're not necessarily given the best advice for us when we approach Citizens Advice Bureaux, Law Centres or councils for help either because their benefits guidance comes from guess who? DWP.

Nad13

Hi,

Thanks for your reply!

I appreciate that. I asked for UC’s advice before completing the claim at the start and I was told because close family live their the property will be disregarded?!!! And UC work for DWP!!!
When we make a error we get sanctions etc… but when they make it we get punished.. how is that fair?

If they don't give the right advice then whats the point of their existence??? To put us into more financial difficulties?

WhatThe

Pretty much, yes.

We keep them in work - that's the point of their existence and the routinely incorrect advice.

Nad13

one of my friends was in the same situation and her Mandatory reconsideration decision they did in her favour. They said she was entitled to it. She had a second property with family living in there. So lets see now

WhatThe

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