Using Capital/ Reclaiming UC

Sunflower15 · August 20

Hi, earlier this year I was granted a 6 month capital disregard in the funds from the sale of the home I lived in. I have been searching for an appropriate home since and had to move in with family (the house had to be sold as it had belonged to my late Mum, it had been my home for 4 years).

I had secured a small mortgage to top up the funds so I could buy somewhere.

a month ago I received a sum of inheritance from another family member. I reported it to UC asking if it could possibly be included in the disregard on this occasion as I need to buy a home. In fact I had been in the process but had to pull out of the flat I was buying due to leasehold issues. They closed my claim. I had the LCWRA element as part of my claim.

I do understand the reason as it put me over the capital limit but was hoping they may hear me out.

If I now use the original funds from the sale of my former home and some of the inheritance to buy a place, will this be seen as disposing of the funds (I can’t think of the actual term for that) in order to reclaim?

I need a suitable home and have also suffered greatly from not having suitable and stable living arrangements for about 10 years. My Mum wanted me to be able to buy a little home though

OR if I wait until the inheritance has naturally dropped due to living on it, would I be able to reclaim UC or will they then treat the house sale funds as normal capital?

I’d appreciate any facts around this please.

Kimi87 · August 20

As previously advised there was likely no grounds to disregard the second inheritance, which is why your claim closed.

Buying a home is generally not considered deprevation of capital.

Yes, if your funds reduce naturally and you reclaim UC, the money is counted as normal capital.

You are free to check these points with a trained benefits advisor also. https://advicefinder.turn2us.org.uk/

Sunflower15 · August 20

https://forum.scope.org.uk/discussion/comment/1145785#Comment_1145785

Thanks

It’s been an awful experience in truth Even though it’s the rules

ok so the previously disregarded funds would not be considered for disregard

I will speak to CAB I am just dealing with a lot of worry and wanted to ask on here so thanks for your reply

bookrabbit · August 21

I wish they would just pause UC when things like this happen and it's obvious it will be required again as soon as living expenses drag it back down.

I am very worried about when it inevitably happens to me, although unfortunately I won't get anything like enough to buy somewhere to live. It will likely just be enough for a few months of paying my own rent and bills and then the stress of reapplying and the loss of the old level of LCWRA. I am more concerned about the stress than the money actually.

If you buy a house they won't question it as a deliberate deprivation of capital especially as it means you won't need help with rent which is a large part of most claims. The biggest long term effect will be the LCWRA element drop It's a back door way of applying it to existing claimants.