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Will it cause any issues with the DWP, if I transfer £11,000, to pay 12 m rent

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2 weeks 3 days ago #290714 by James77
I just wish to be clear, I received a large back payment from the DWP due to a legal error, which is counted towards my savings, for the length of my claim. I have been asked to leave my property, and the only way to secure a suitable property was to offer 12 months rent in advance. This has nothing to do with deprivation of capital because it is does not apply. Either way I have no choice.

However will this flag up an issue to the DWP, such a large money transfer. From my bank account to a letting agency. Is there any correct way to handle a situation like this.

Also if you don't mind me asking how does this apply in terms of savings. Hopefully I will get the majority of this money back through housing benefit payments. So is this the reduction in savings or not in your view?

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2 weeks 2 days ago #290735 by latetrain
Hi James77

Where benefits have been underpaid because of:

* an official error
* an error on point of law

Any payments over £5,000 can be disregarded for the length of the claim or until the award ends.

All I would say is keep receipts of any large payments you make.

Gary

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2 weeks 2 days ago #290736 by Jones1988
Unfortunately new tenants are frequently put into your position especially in well sought after areas . These payments are recognised as legitimate by the DWP and rent in advance won't affect your Benefits or housing allowance.
The following user(s) said Thank You: latetrain

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2 weeks 2 days ago #290758 by Moof
With anything like this I tend to write to them and explain exactly what I'm doing, so they can't later claim I failed to inform them.

I received a legacy of a similar amount a few years ago, and also had to move house. I was offered a new-build with bare concrete floors , no curtain rails, plaster dust everywhere, etc. As well as flooring and blinds, I needed furniture and white goods for the kitchen.

It cost over £6k to make it liveable, and I sent a document to DWP listing all the expenses and supplied bank statements to back it up. It took forever for them to respond, of course, but when they did they were helpful. They accepted it all as reasonable expenses.

You have an even more straightforward case, since part of your overpayment will be disregarded anyway.

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2 weeks 2 days ago #290774 by Chris
Hi Gary,

I'm just reading what you've wrote, and it has me slightly confused as I applied for PIP in 2020, eventually got it in 2022, and still do to this day. In 2022, I was given a backdated lump sum of just under £10k, however, because I didn't spend it, since 2023 in June, my Universal Credit has been reduced by £100 per month because of this money being classified as savings and me not spending it within a year. What you've written makes me think that this shouldn't have happened to me because of the "Any payments over £5,000 can be disregarded for the length of the claim or until the award ends" statement.

Have I misunderstood what you're meaning ?

Cheers, Chris.

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2 weeks 2 days ago #290782 by Gordon
Chris

You have missed Gary's reference to;

* an official error
* an error on point of law

Gordon

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