Will I lose my Transitional Element?

Sunflower15

hello

I will be buying a flat this year from proceeds of the sale of the house I live in which was my late Mum’s

in doing so will I lose my transitional protection element of Universal Credit?

I will be getting a small mortgage so I can buy (am working with a broker who helps those on benefits to get mortgages)

that’s all that will change but I need to know if I will lose it by this change in circumstances as it will affect if I can buy this particular flat

Further question I also need to consider for down the line:
I have a further question on this too relating to a lump sum I will receive in about a year. I will receive around 20k inheritance from another family member. I know my UC will stop. I will use about 10k to pay off some of the mortgage. So will then have about 10k. Will I lose my transitional element then in the stopping and starting process and will I have to go through a complete reapplication for UC in that situation?

I need to know both 1 and 2 before I can proceed with the flat I have lined up. Thank you

Sunflower15

Note I do not receive the housing element

I get

Standard allowance

Limited capacity for work

Transitional protection as I moved from ESA a year ago

thank you

OverlyAnxious

Hi,

Buying the flat shouldn't stop your TP.

But if you lose UC altogether due to the savings lump sum, then you will not get TP again when you start the new claim after savings drop. In addition to that, you will also only get the lower amount of LCWRA that is coming in from April this year. And yes, you would have to go through the full WCA process again. If there's any way you can avoid getting that £20k into your bank account, that would be the better option.

Kimi87

You won't lose Transitional Protection due to the move.

With capital it is your circumstances on the last day of your Assessment Period which is most important.

If on the last day your capital exceeds £16k, then your claim stops.

If the 20k was received & 10k quickly spent on mortgage repayment all before the end of an AP, your claim would not stop. Debt repayment is generally not considered deprevation of capital with UC.

You would then have a small deduction to your UC award of £4.35 for every £250 in capital over £6k or part thereof.

If you claim did stop, then yes the TP would be lost and a new claim would start from scratch including a lower payment for LCWRA after a new WCA.

I would say to get some advice also from a trained benefits advisor.

https://advicefinder.turn2us.org.uk/

Sunflower15

@OverlyAnxious thats very helpful thank you so much.

Ok so I’m wondering what my options are with that then?

as I would not be able to afford anything to live in purchase wise if I lost half the standard and the transitional too 😔😣 I’m glad I asked though

OverlyAnxious

https://forum.scope.org.uk/discussion/comment/1098673#Comment_1098673

Sadly the only safe & legal option is to ask your relative to leave you less, or to pay off some of your mortgage directly before they pass.

I do appreciate Kimi's suggestion of paying off some of the mortgage before the end of the AP in which you receive the inheritance, but that feels like too much of a risk to me. Whether £10k's worth of mortgage still falls under the debt rules seems like a grey area and could see your UC suspended awaiting a decision, or closed altogether until the savings drop. I'm in a similar position myself, hoping to move to a more accessible rented property or try to get a mortgage while on UC, but while I'm waiting for that, my savings are constantly increasing, and could pass £16k, which would leave me in the same situation as you. Having much less UC income when reclaiming after the savings drop and no longer having enough to cover the rent or mortgage.

It's definitely not an easy decision and I would agree with Kimi that perhaps professional advice would be best there.

Sunflower15

@OverlyAnxious

thank you for this and I’m really sorry to hear you’re in this position. It seems like it’s very hard to get a foot up into a better way of life doesn’t it.

this is all so worrying.

sadly my relative passed away last year and my share is coming once all the probate is done. It was meant to make my life easier.

sad for both of us!

Sunflower15

@Kimi87 thank you very much for your reply. When does an assessment period end please?

Can you tell me where I can find any info about this and have you experienced something like this yourself please?

Kimi87

Each Assessment Period lasts one calendar month (30 days).

The dates of your AP will be written on your payment statements.

Mine for example is the 26th - 25th each month.

I'd recommend you talk to a trained benefits advisor

https://advicefinder.turn2us.org.uk/

I am not trained and give advice as an amateur.