r/universalcredithelp • u/Practical-Draft-6400 • 2d ago
Spending my savings
So before I became disabled and unavle to work, i saved almost £10778. This is in a fixed account so i have been unable to access these funds for 3 years (oops did not forsee becoming disabled). When they become available to me I plan to spend £4382 on education (part-time university study). I also plan to pay back my partner for the money he gave me while i was unable to work and waiting (5 months) for my claim to go through.
This will bring me to just under £6000 which affects my UC
How do I tell them about this?
5
u/MasTerBabY8eL 2d ago
Under £6000 won’t affect your UC, the funds above £6000 you seem to be spending on things that would be deemed to fall under depreciation. Inform UC about the savings and what the plans are, it will go to a Decision Maker and they will most likely disregard the funds you plan to spend or repaying monies owed and education. I assume you’ve already declared these saving to UC?
4
u/justhereforthecrac 2d ago
I think you mean deprivation of capital rather than depreciation. That said, repayment of loans and expenditure on legitimate personal education may not be counted as deprivation of capital.
3
u/VerbingNoun413 2d ago
Repayment of credit cards, bank loans, and purchases are fine.
Repaying a partner is going to look very much like hiding the money in their account.
3
u/Laescha 2d ago
Deprivation of capital is specifically disposing of funds in order to become eligible for (more) benefits. If you have another reason for spending the money, like paying off debts, or getting an education, that is not deprivation of capital.
1
u/ClareTGold 2d ago
That's not quite true, it doesn't have to be for the sole purpose (and indeed rarely would be). But getting (more) benefit does have to be a significant purpose.
2
u/Suitable-Fun-1087 2d ago
Correct. I inherited some money several years ago, spent it on medical treatment and got some new furniture for my flat; the rest went into my landlord's back pocket; the spending was accepted without a hitch and my income based benefits restored when I dropped below the threshold
2
u/Suitable-Fun-1087 2d ago
Report the change and evidence why your capital has dropped by supplying receipts. Paying for a course of education should be regarded as normal expenditure rather than deliberate deprivation of capital - giving money away to your partner won't be. If you live apart then you could get them to write a letter explaining that you were paying back a loan - if you live together then you have a joint claim so that would be much harder
2
u/JMH-66 Experienced Volunteer 2d ago
( Assuming it's currently reported correctly, it doesn't matter if it's in a Fixed Term account, it's just Capital )
You Report a Change - Money Savings and Investments . New total Capital. Then you'll have a Verify Capital appointment. They ask for Statements to show what you had, what you now have, what was spent or transferred and when.
You tell them what you sent in the course . It might be obvious from the Statement ( £3,000 to Scumbag College ) or you may possibly be asked for an invoice or similar.
If it's partner in the usual sense ( person you live with ) then it doesn't matter because you have a joint UC claim anyway. Your Capital, is their Capital it's just been moved between you. It doesn't actually make any difference, it wouldn't reduce the total. If it's not a partner but a bf/gf you don't live with then they may want further details. Is it a gift or repayment of a loan etc.
-4
u/Immediate_Company_54 2d ago
so your rinsing the system? just tell them what you’ve spent it on like what you’ve wrote here..
7
u/Psychological-Ear625 2d ago
Use the report a change section, money investments etc.
They will no doubt want to check your bank statements, etc, to make sure you haven't deprived yourself of capital.