Right to buy and universal credit

anonhelp
anonhelp Online Community Member Posts: 9 Listener
edited January 2022 in Universal Credit (UC)
Good evening 

I am looking to buy my council flat. I am currently in receipt of UC- housing element, standard allowance and for x2 children.
I also work approx 25 hours per week. 

It is my understanding I would no longer get help with the housing element once I have my small mortgage on my property (of course). 

However, does anyone know if I would still be entitled to the standard allowance (SA) and allowance for the children (CA) given my income is considered low. I am due some inheritance which would cover half of the flat price and the rest would be a small mortgage. 

I would have no savings once the property is purchased (for inheritance will hit my account and then go straight out to the council) and I would continue to earn approx £1200 from my job per month, plus my children’s maintenance, plus my child benefit. 

I have calculated without the housing element but including the SA and CA and minus the monthly work allowance (£335) I could still receive approx £443 UC if they don’t stop me claiming altogether? 

The only advice I can see online is help with mortgage and/or interest payments- I do not need either of these. The only other info I can see is help if not working, but I will remain working. Would I lose all entitlement to UC because I won property?

Any help would be appreciated.

Many Thanks 

Comments

  • calcotti
    calcotti Online Community Member Posts: 10,001 Championing
    edited January 2022
    All elements of your UC award would remain except for the housing element (assuming your circumstances were unchanged apart from buying rather than renting).

    However when you receive your inheritance I assume you will not be able to buy a house instantly so it will count as capital.  If this takes you over £16,000 you will no longer be entitled to UC. You will be able to make a new UC claim when the capital drops back below £16,000. Once you have bought a house the value of that house will be ignored if you are living in it.
  • poppy123456
    poppy123456 Online Community Member Posts: 64,463 Championing
    anonhelp said:


    I have calculated without the housing element but including the SA and CA and minus the monthly work allowance (£335) I could still receive approx £443 UC if they don’t stop me claiming altogether? 


    When you don't claim for help with any rent your work allowance is increased to £557 per month. https://www.gov.uk/government/publications/universal-credit-work-allowances/universal-credit-work-allowances



  • calcotti
    calcotti Online Community Member Posts: 10,001 Championing
    edited January 2022
    Thanks poppy - missed that bit.

    So OP, your UC would be standard allowance plus child element = Maximum Amount.
    The earnings deduction would be (£1200 - £557) x 55% = £353.65. 
  • anonhelp
    anonhelp Online Community Member Posts: 9 Listener
    You guys are amazing! Thanks so much. My capital would be just below the £16,000 so my claim won’t stop but will be reduced significantly for a couple of months I am guessing. 
    I just cannot find any legislation which states I would not lose my UC so I was worried about going through the RTB process and I can’t top up my salary anymore at the moment as I am also caring for my mother and son unpaid, so juggling many plates. This is reassuring. Thank you for your help.

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