Help with house sale equity and UC

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samanthalouisetwins
samanthalouisetwins Online Community Member Posts: 5 Listener
in Universal Credit (UC)
Hi there, I’m after some advice on my benefits and the equity I may receive from the house sale of my shared ownership. It’s been valued and it’s considerably higher than a few years ago, and I didn’t think I would get any equity but it’s looking like I will get an amount above £16,000.

my questions are as I’m not working and a full time carer for my daughter that has high rate DLA, will it affect my universal credit or benefits if I use the equity for the new house I’m moving to (it’s social housing). We need to look at specialist bathing and also to relevel the whole garden to allow access, social housing are refusing to fund it and I’m so keen to have my daughter included in all activities with her twin sister. I just don’t want to be penalised by the DWP if I used the money in this way and would it affect my benefits if I spent it on my daughters needs? , as well as anything that remained I would want to put into an ISA in my daughters name as I know the cost of care for my daughter as an adult will be expensive and I want to be able to provide a sum to help her directly. But I don’t want to do anything wrong relating to benefit entitlements. Does anyone have any experience of this? I am only selling as the house cannot be adapted and I cannot afford to live here with a mortgage,

thankyou

Sam

Comments

  • poppy123456
    poppy123456 Online Community Member Posts: 64,463 Championing
    edited June 2022
    UC is a means tested benefit so if you have savings/capital of more than £16,000 on the last day of your assessment period then your UC will end. Once the money goes into your bank you need to report the changes.
    You can buy things with it and make changes to your new house, including the garden. When buying things with this money, there's no definition of deprivation of capital. As long as you didn't buy the most expensive things then it should be ok.
    However, if you put the money into an ISA for your daughter then this would be seen as deprivation of capital and you'll still be classed as having the money and you're UC will still be affected.
    Once your money goes below £16,000 you can reclaim UC but for every £250 or part there of over £6,000 there will be a £4.35 per month deduction in UC.
    If you're claiming council tax reduction then all local Authorities have their own rules, some have a maximum savings limit of £6,000. You will need to report the changes to your Local Authority too when the money goes into your bank.
    DLA will not be affected.
  • calcotti
    calcotti Online Community Member Posts: 10,001 Championing
    If your UC is going to stop due to the capital you could claim Carers Allowance for looking after your daughter (I assume she's the one getting the DLA). 

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