Question re the benefits system
Discussion
Hoping someone can assist with this.
Somebody who I know is mid-50s and hasn’t worked since he was in his 20s due to significant mental health issues. Nobody knows quite what these issues actually are as he won’t talk about them although from what I hear there may be some sort of paranoia/possibly bipolar/schizophrenia going on. I don’t know him well but I know his family. He’s been seen and diagnosed in the (distant) past but I have a suspicion that he hasn’t seen anyone medically for a long time now.
He lives the life of a hermit in a small rented flat for which the State pays the rent, and pays him whatever benefits he’s entitled to to live (some sort of PIP/UC I guess, I don’t know my way around the benefits system).
In the foreseeable future he’s likely to inherit a decent chunk of money, certainly enough to buy his own modest property, such as a one bed flat. Now, common sense would say that the State would say “ok, thank you, that saves us paying your rent” and that they would then continue to pay his PIP/UC/whatever. However, concern from those around him is that the State don’t use or apply common sense, and that they’d cut him off once they know about the inheritance and leave him in a difficult position (eg leave him to pay his own rent and living costs from the inheritance, but what happens when that runs out?)
Does anyone know how the system(s) would work in a case like this?
Somebody who I know is mid-50s and hasn’t worked since he was in his 20s due to significant mental health issues. Nobody knows quite what these issues actually are as he won’t talk about them although from what I hear there may be some sort of paranoia/possibly bipolar/schizophrenia going on. I don’t know him well but I know his family. He’s been seen and diagnosed in the (distant) past but I have a suspicion that he hasn’t seen anyone medically for a long time now.
He lives the life of a hermit in a small rented flat for which the State pays the rent, and pays him whatever benefits he’s entitled to to live (some sort of PIP/UC I guess, I don’t know my way around the benefits system).
In the foreseeable future he’s likely to inherit a decent chunk of money, certainly enough to buy his own modest property, such as a one bed flat. Now, common sense would say that the State would say “ok, thank you, that saves us paying your rent” and that they would then continue to pay his PIP/UC/whatever. However, concern from those around him is that the State don’t use or apply common sense, and that they’d cut him off once they know about the inheritance and leave him in a difficult position (eg leave him to pay his own rent and living costs from the inheritance, but what happens when that runs out?)
Does anyone know how the system(s) would work in a case like this?
AIUI Housing Benefit (which is what covers the rent on his flat) is means tested and you can only claim it if you have £16k or less in savings
ETA whoops, apologies. I didnt read your email properly.
AIUI /UC is means tested so yes, they would expect him to use his savings until they fell below the threshold and then expect him to re-apply.
PIP I am not too sure about
ETA whoops, apologies. I didnt read your email properly.
AIUI /UC is means tested so yes, they would expect him to use his savings until they fell below the threshold and then expect him to re-apply.
PIP I am not too sure about
Edited by Countdown on Monday 7th July 12:46
If he received over 16k then his claim will be stopped under UC rules.
But he could buy a house, keep under 16k cash and reclaim and should go straight back on benefits.
He won't get housing though. But he will own his own house.
Benefits have a term of wasting money to get benefits. But houses , cars are generally required so pretty much exempt. If he gave it away to family etc would get issues.
Best to get advice but it can be sketchy as benefits system is very complicated.
This action could also trigger a reassessment so get ready to defend that
But he could buy a house, keep under 16k cash and reclaim and should go straight back on benefits.
He won't get housing though. But he will own his own house.
Benefits have a term of wasting money to get benefits. But houses , cars are generally required so pretty much exempt. If he gave it away to family etc would get issues.
Best to get advice but it can be sketchy as benefits system is very complicated.
This action could also trigger a reassessment so get ready to defend that
Thank you. So, say he spent the whole of his inheritance on purchasing a property, leaving him with assets under £16k. Would he still be able to claim his “living” money? I think the concern is that the State would say, “hang on, you just bought a flat, why didn’t you live off that money instead?” and then drop him. That’s where the concern about the benefits process not using common sense comes in, ie they would just see a capital sum passing through his account but their systems wouldn’t be able to offset that against the fact that they don’t have to pay his rent any more.
He’s not trying to “fiddle” anything, just that if he buys a property he’ll have a small degree of independence and security, but still needs the benefits for the basics.
He’s not trying to “fiddle” anything, just that if he buys a property he’ll have a small degree of independence and security, but still needs the benefits for the basics.
Lookin4Clues said:
Thank you. So, say he spent the whole of his inheritance on purchasing a property, leaving him with assets under £16k. Would he still be able to claim his living money? I think the concern is that the State would say, hang on, you just bought a flat, why didn t you live off that money instead? and then drop him. That s where the concern about the benefits process not using common sense comes in, ie they would just see a capital sum passing through his account but their systems wouldn t be able to offset that against the fact that they don t have to pay his rent any more.
He s not trying to fiddle anything, just that if he buys a property he ll have a small degree of independence and security, but still needs the benefits for the basics.
YesHe s not trying to fiddle anything, just that if he buys a property he ll have a small degree of independence and security, but still needs the benefits for the basics.
Pip isn't means tested other benefits are. But they see this issue all the time. You can seek legal advice to clarify this.
He needs to report and get his claim closed as soon as he has the money, but should be able to reclaim once house purchased.
But remember that this is the benefits system and s
t happens.You have to self notify currently benefits can't check bank accounts but I think the laws are changing soon.
AllyM said:
With such things, would the benefits people be automatically alerted to such a windfall or is the onus on the claimant to alert them?
No but I saw a case a women ended up in jail for not reporting inheritance. People talk etc.Certain windfalls are exempt in a 12 month window for spending, like medical pay outs etc. whatever spent need to back it up
Edited by Gt6turbo on Monday 7th July 13:10
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