Deprivation of Capital Allowance Rules

PRG66

Hi,
I am 65 yrs old. I am on UC in the support group. I am registered as self employed carpenter doing less than 16 hours a week. Though in reality I've not been well enough for years to do any at all. The UC self employed page has anticipated this by forshortening my monthy data.
I spent my £5,000 savings (below the max allowable) in April / May this year on various expenses including insurance, household bills, car expenses, insurance etc, private medications (not available on NHS) and tools. Some of them as much as £1,500.
On 18th July I received an £11,500 inheritance. I put £2,000 to my disabled son, bought a family holiday for 4 of us - about £1,500 + some holiday cash at about £750, more tools, more bills etc.
By 18th of August, I was back down to £6,000. I then told the UC what I had done. They want ALL bank statements going back to May 2023.

I am wondering if the Deprivation of Capital Allowance Assessors will see my spending of the previous £5,000 in April / May 2025 as 'depriving my capital' in lieu of receiving the new inheritance in June 2025.

In my mind, I am within reason, I feel I am entitled to spend that £5,000 of my allowable savings in any way I wish, on anything I want and at any time. Then with the new cash input, gioven how small the ammount is, again within reason to pay all these legitimate expenses and bills, a family holiday and some tools etc is legitimate.

However, I am well acquainted with corporate gaslighting and corporate abuse and expect the Assessors to penalise me. I hope it's just my paranoia. Anyone have anything to say about this? Comments gratefully received.

Rachel_Scope

Hi @PRG66, sorry this reply is so late. I'm hoping you were able to get it sorted but if not, here is some information for you about Deprivation of Capital

"If you knowingly reduce your money, savings and investments, or transfer them elsewhere to get or increase your Universal Credit, this is known as ‘deprivation of capital’.

You have not knowingly reduced your money, savings and investments if it has been used to:

• pay off or reduce a debt
• pay for goods and services that were reasonable in your circumstances

If we decide you’ve deliberately reduced your money, savings or investments, your Universal Credit is based on you still having it. This is called ‘notional capital’."

So it would depend on how they view your spending and whether it was 'reasonable'.