DWP: 'deprivation of capital'?

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IrvineHimself

IrvineHimself

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This morning I received notification of a surprise inheritance. In the grand scheme of things, it is not a major life changing amount, but it is enough that I will have to notify the DWP. The thing is, as forum members know, when I retired and moved into my assisted living facility, I had absolutely zero financial resources and had to make do with furnisher, carpets and white goods which, while serviceable, are still reclaimed from the skip. 😉

I have been slowly replacing my furnisher out of what I call my 'project' budget. However I would really like to use the funds to get: decent carpets; a large, energy efficient fridge freezer; a decent air fryer and a new microwave. In addition, as I mentioned in my thread about robotic cleaners, I want to replace my 'bookcase' with a custom built "Bookcase MK II".

Noting I have it on record on this forum, that, along with it being something on which to display my mementoes, functionally the purpose of the bookcase is a mobility aid: 'It provides me with something to hang onto as I navigate my apartment.'

In addition, as previously noted in my thread on robotic cleaners, the current MK I version of the bookcase is not robot friendly [ditto my beautiful, steel framed double bed]. As a consequence, as I get older, since about a fifth of the carpeted area is not being cleaned efficiently, the MK I version is a potential health hazard.

Does anyone have any experience of what constitutes deprivation of capital, ie intentionally spending savings to increase means tested benefits. Also, how does the forum feel about my argument that the proposed expenditure is justified on mobility/health grounds?

Irvine
 
Absolutely NOT anything I'd consider reprehensible (but then I'm obviously not the ruddy DWP) decent 2nd hand furnishings are much OK when anyone can't afford new BUT when some of the stuff becomes eg a trip hazard - which is a 'bit of a thing' for most people as they age anyway - the considerations are quite different.
 
When i had this explained by dwp member of staff they kinda said 'you can't buy a yacht but you could replace a fridge'.
You may want to check with Citizens advice or similar welfare advice organisation
 
IrvineHimself said:
This morning I received notification of a surprise inheritance. In the grand scheme of things, it is not a major life changing amount, but it is enough that I will have to notify the DWP. The thing is, as forum members know, when I retired and moved into my assisted living facility, I had absolutely zero financial resources and had to make do with furnisher, carpets and white goods which, while serviceable, are still reclaimed from the skip. 😉

I have been slowly replacing my furnisher out of what I call my 'project' budget. However I would really like to use the funds to get: decent carpets; a large, energy efficient fridge freezer; a decent air fryer and a new microwave. In addition, as I mentioned in my thread about robotic cleaners, I want to replace my 'bookcase' with a custom built "Bookcase MK II".

Noting I have it on record on this forum, that, along with it being something on which to display my mementoes, functionally the purpose of the bookcase is a mobility aid: 'It provides me with something to hang onto as I navigate my apartment.'

In addition, as previously noted in my thread on robotic cleaners, the current MK I version of the bookcase is not robot friendly [ditto my beautiful, steel framed double bed]. As a consequence, as I get older, since about a fifth of the carpeted area is not being cleaned efficiently, the MK I version is a potential health hazard.

Does anyone have any experience of what constitutes deprivation of capital, ie intentionally spending savings to increase means tested benefits. Also, how does the forum feel about my argument that the proposed expenditure is justified on mobility/health grounds?

Irvine
Click to expand...

I'm no expert, but as I understand it, the DWP have to prove that you spent money in order to be awarded, or to increase any relevant benefits. I'd say that replacing something utility - especially "preloved", it would be pretty mean if they did not allow it.

I would echo @Tdm's suggestion of talking the folks at the CAD or any of the benefits charities.
 
It may depend on the specific benefits but people are often allowed a certain amount of 'savings' before they lose benefits. So unless it is a fortune you may be OK.
 
Thanks for the feedback. The more I read about this, the more it appears to be an 'intentional' minefield, with claim assessors having a great deal of discretion with regard to interpreting whether or not an expenditure constitutes capital deprivation. For example, from Shelter:
.... The DWP must show that the claimant's significant purpose was to become entitled to universal credit or increase their entitlement, even if it was not their main purpose....
Click to expand...

Having spent most of my life travelling, I get a fairly significant bump from pension credit. Since each £500 chunk over the £10,000 savings limit is credited as £1 of income, I will be a fair way along a very slow taper, but in no immediate danger of losing my pension credit. The trap is in the wording ".. even if it was not their main purpose ...."

As I am sure the forum knows, even 10 years ago, I would have told the DWP to stuff their pension credit; bought a small yacht in need of a bit of TLC, and headed off into the deep blue. Now though, like many on this forum, I am getting old with relentlessly increasing care needs. In consequence, I am no longer in a position to tell the DWP to stuff it. In other words, I have no choice but to freely admit that losing my pension credit would be an unmitigated disaster.

It is not difficult to imagine others in a similar position who, out of fear of falling foul of capital deprivation rules, are not meeting their care needs.

Tdm said:
When i had this explained by dwp member of staff they kinda said 'you can't buy a yacht but you could replace a fridge'.
You may want to check with Citizens advice or similar welfare advice organisation
Click to expand...
That is excellent advice!

I take it you have been through this before?

As the forum knows, for what will soon be two years, my primary focus has been on meeting my current and future care needs. Having made the life style choice to chase adventure rather career, I do not have a large pension pot, and am reliant on technical and/or mechanical solutions to reduce the financial burden.

While over the lifetime of the tech there are significant savings to be made, for example, over the next two years, my robot will cut a potential cleaning bill by about £5,000 (or over %90), the initial outlay can be prohibitive. Further, with a view to having my appartement modified, I have previously requested referrals from both social work and my doctor to see an occupational therapist. Noting there is a long waiting list and a great deal of budgetary pressure for these modifications, when requesting both referrals, I am on record as stating: "If I had the money I would pay for the them myself!"

Anyway, what I am particularly worried about is having to justify [or even pre-clear] every significant purchase. I would find this intolerable.

Thanks again for your input, these types of discussions really do help me focus on the problem.

Irvine
 
IrvineHimself said:
Thanks for the feedback. The more I read about this, the more it appears to be an 'intentional' minefield, with claim assessors having a great deal of discretion with regard to interpreting whether or not an expenditure constitutes capital deprivation. For example, from Shelter:


Having spent most of my life travelling, I get a fairly significant bump from pension credit. Since each £500 chunk over the £10,000 savings limit is credited as £1 of income, I will be a fair way along a very slow taper, but in no immediate danger of losing my pension credit. The trap is in the wording ".. even if it was not their main purpose ...."

As I am sure the forum knows, even 10 years ago, I would have told the DWP to stuff their pension credit; bought a small yacht in need of a bit of TLC, and headed off into the deep blue. Now though, like many on this forum, I am getting old with relentlessly increasing care needs. In consequence, I am no longer in a position to tell the DWP to stuff it. In other words, I have no choice but to freely admit that losing my pension credit would be an unmitigated disaster.

It is not difficult to imagine others in a similar position who, out of fear of falling foul of capital deprivation rules, are not meeting their care needs.


That is excellent advice!

I take it you have been through this before?

As the forum knows, for what will soon be two years, my primary focus has been on meeting my current and future care needs. Having made the life style choice to chase adventure rather career, I do not have a large pension pot, and am reliant on technical and/or mechanical solutions to reduce the financial burden.

While over the lifetime of the tech there are significant savings to be made, for example, over the next two years, my robot will cut a potential cleaning bill by about £5,000 (or over %90), the initial outlay can be prohibitive. Further, with a view to having my appartement modified, I have previously requested referrals from both social work and my doctor to see an occupational therapist. Noting there is a long waiting list and a great deal of budgetary pressure for these modifications, when requesting both referrals, I am on record as stating: "If I had the money I would pay for the them myself!"

Anyway, what I am particularly worried about is having to justify [or even pre-clear] every significant purchase. I would find this intolerable.

Thanks again for your input, these types of discussions really do help me focus on the problem.

Irvine
Click to expand...
Could you ask where ever the money is coming from to buy you the things you need rather than giving you actual money or give it in the form of vouchers.
 
I wish it was that easy, unlike in more civilised countries, the UK treasury not only takes a very expansive view of what constitutes income, but also has a deservedly bad reputation for targeting those at the lower end of the income scale. I would probably end up having to pay, what for me is, massive amounts of income tax. (Needless to say, I have long considered the way the UK apportions' resources to police for tax and benefits violations to be insane!)

The DWP has a surgery at Streetwork on Thursday afternoons. So, since, no matter what, I am going to have to tell them, I thought I would draught a letter [complete with photos] outlining my plans and the points I have raised in this thread. That way, in a face to face meeting, I will have legally fulfilled my duty to notify.

Following this, in what I hope will be an unnecessary precaution, I am going to contact both Citizens Advice and Age UK.

Hopefully, this will all be unnecessary and my planned expenditures will be just waved through.

It's all very exciting: While there is not enough to do big bucks research, if I am careful with the expenditure, I am fairly sure I can afford to build a reasonable approximation of a Jetson' type robotic appartement.:rofl:
 
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