UC and owing your own home

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

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

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