Does an inheritance affect my DLA?

barbiedyson55

Hello would anyone know how an inheritance of money might affect my dla Housing/council tax benefits please. Will I be made homeless. I’ve copd/emphysema and a heart defect tia

Liam_Alumni

Hi @BenefitsTrainingCo, would you be able to help with this, please? Thank you!

mikehughescq

Doesn’t affect DLA at all. HB/CTR will be impacted but to what extent depends wholly on how much capital you have now and how much will be inherited. Both will stop if you have > £16,000 but you’re not going to be homeless simply because even if they cease you’ll have >£16,000 with which to meet those costs until such time as it falls below and you reclaim. 

BenefitsTrainingCo

barbiedyson55,

I don't have much to add to Mike's advice - thanks to Mike as ever. Your DLA is unaffected. You don't mention income-related ESA but if you get that, the effects are the same as for housing benefit - if the inheritance is more than £16,000, no income-related ESA, no Housing Benefit, no council tax reduction. 

You'll be expected to pay your rent & council tax from the savings. As long as you spend them on things like that (& other everyday living expenses, ie things you need, or immediately repayable debts) then once your savings go below £16,000 you could reclaim. However, I'd be aware that even if Universal Credit hasn't started in your area now, it may be that it will have started by the time the savings go down. So in the future, if the savings go below £16,000 because you've lived on them, you may have to claim Universal Credit and council tax reduction.

Will

barbiedyson55

Thank for the info it’s much appreciated:)