Advice on claiming UC

Hi,

I need some advice on the best way to help my client claim benefits. She was in receipt of income-related ESA and received an inheritance that wasn’t declared. When this was found we notified ESA immediately and her benefit was stopped. We have been chasing ESA for details of the overpayment but haven’t had any luck. Her capital in currently in excess of £16k, however once the overpayment comes in and we repay it, it will drop below £16k. Would it be possible to claim UC now and then request revision when the O/P is repaid?

Can anyone offer any advice?

Your client is not entitled to UC as their capital exceeds £16k. Once the capital reduces to below £16k, your client may then be entitled to UC (subject to any deprivation issues).

The significance of the overpayment is that if your client decides to spend their money on paying that off specifically, they cannot be accused of depriving themselves of capital (as a result of reg 50(2)(a)), but that is as far as it goes.

There wouldn’t be any question of backdating entitlement to before your client spent the money. Your client still had the money when the decision was made. They don’t have a specific right to use the overpayment as a means of reducing their capital. They will just need to spend their capital to meet their living costs or otherwise for the time being.

Any overpayment should still be reduced by reference to diminishing capital rules.

That’s what I though but quite unfair. Had the DWP responded to our initial letter regarding the overpayment, she would have been able to claim UC months ago. Because they are so slow to action anything, she loses out. Typical DWP stuff really.

Thanks

I wonder whether there is a way around this. If you work out what the OP should be (it should be quite easy if it’s just to do with excess capital - remembering diminishing capital) and then the client pays that amount (or enough of it to bring the capital below £16K) to the DWP by electronic transfer (using their NINO as a payment ref.) then they would no longer own that capital. Then when the OP and demand for payment come through, they can point DWP to the payment already made.

An alternative method, but perhaps more difficult /problematic, might be to hold the OP money on trust for the DWP.