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TOPIC: UC and owing your own home

UC and owing your own home 1 week 16 hours ago #222641

I’m trying to obtain some background information before contacting the authorities

A family member has been unable to work for a long time now. It is unlikely they will work again. They live on their own in a privately rented house. The landlord wishes to sell the house with vacant possession and has given the statutory notice. He is currently receiving PIP, HB and was receiving ESA with some disabled premiums

The family were thinking of clubing together, buying the house and giving it to him, but we are wondering what affect this will have on his benefit. He willl be coming out of hospital after a long stay and we understand that he will have to apply for universal credit. We are trying to give our brother some security in his life but obviously don’t want him to suffer financially throug our gift

So I suppose I’m asking if he becomes a property owner how much money is he likely to loose

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UC and owing your own home 1 week 14 hours ago #222654

Kevin

First of all, based on your post I am not sure I see any requirement for him to claim Universal Credit as there would no requirement for a new claim of any of the benefits that come under the UC umbrella.

The family purchasing a house would not be an issue for any of the benefits they currently receive or UC if they did actually have to claim it.

As an aside, you mention that they have been in a hospital, if this was for more than 28 days then the DWP need to be informed as their PIP payments need to be suspended.

Gordon

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Nothing on this board constitutes legal advice - always consult a professional about specific problems

UC and owing your own home 1 week 11 hours ago #222668

Gordon thanks for your reply. I unintentionally gave incorrect information
I should have said that we want to loan him the money to buy the house. Repayment is not a particular issue.
To buy the house and gift it would mess up the tax affairs of the major doner
Kevin

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UC and owing your own home 6 days 21 hours ago #222676

Kevin

It won't be a problem providing he never has control of the money, so you and your family need to make the purchase.

Gordon
The following user(s) said Thank You: Kevin

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UC and owing your own home 5 days 15 hours ago #222752

Thanks for your answer to date.

In discussing with my brother his benefits (he has bipolar) I discovered he has PIP medium care plus low mobility. He also in the ESA Work Related Group. My feeling is that he should be in the Support Group, he has been sectioned three times over the past five or six years and is just been discharged as a voluntary patient after a stay of eight weeks!

Anyway, according to the hospital social worker his current ESA benefits are
Living expenses  £73.10
Extra money because of disability  £64.30
Limited capability for work addition  £37.65
Total ESA  £191.45. On the face of it that seems fine.

The Social Worker ran some figures for us via, CAB, assuming our brother became a home.

Cab to Social Worker... if he became a home owner and wanted to claim for help with rates or mortgage interest help he would have to make a claim for universal credit which would leave him worse off as he is getting mulitple premiums on ESA that would not be applicable under UC

Social Worker to CAB...Any way of knowing an estimate of how worse off he would be – her family is trying to determine if he could survive on what he would get in this case

CAB to Social Worker...ESA = £191.45 p/w, UC would be £145.11 p/w (not taking in to consideration deductions for availing of an advance payment to keep her ticking over during waiting period


The difference is horrific £46.34!

Should our plans come to fruition if he were to pay the rates himself and it’s an interest free loan with no payback date would we still maintain the £191.45 per/wk ESA

I do appreciate that the site is not keyed up to the NI Benefit System but as it is ESA to UC does this appear correct?

As always many thanks for your advice

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UC and owing your own home 3 days 20 hours ago #222782

Kevin

My first thought is that your brother needs to get a new CAB advisor and a new Social Worker!

Support for Mortgage Interest is not a benefit that comes under the UC umbrella and based on your post, there is no requirement for your brother to claim UC at all at this time.

Be aware, SMI is not an interest free loan, you won't get a lower rate on the market but there is a cost.

Gordon

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