Universal Credit Claimant Anxious Over DWP Compliance Interview After Spending Inheritance
A parent receiving Universal Credit has expressed significant anxiety ahead of a scheduled benefits meeting after spending a £10,000 inheritance within a few months. The claimant received the funds approximately two years ago and used the money to settle debts and purchase household furniture, including a sofa and two beds. With no remaining savings, the individual is now entirely dependent on monthly payments from the Department for Work and Pensions (DWP).
The DWP recently contacted the claimant regarding the past inheritance and has requested to review their bank statements. The situation has caused considerable distress, as the claimant fears potential repercussions for not declaring the inheritance earlier.
Reddit User Seeks Advice on Compliance Interview
In a Reddit post titled 'Can anyone help.. compliance interview for being in receipt of inheritance,' the user detailed their predicament. They explained that the inheritance was paid in two separate payments: approximately £7,000 initially, which dropped below £5,000 within days, followed by about £3,000 a few months later. The money was rapidly spent within a couple of months on debts and home furniture.
The claimant stated: 'I have no savings etc. I live every month UC payment by payment. The claim has only restarted a few months ago and I'm struggling as I'm five weeks behind with all bills/rent due to Universal Credit closing my claim as I had moved over from employment and support allowance a couple of months beforehand.'
They added: 'They want last months May to June bank statements (which has less than £30 in). I don't get why it's taken this long to contact me. Now I feel like I'm gonna have to give benefits, two years of money, back as I didn't declare it which wasn't intentional.'
Reddit Community Offers Reassurance
Other Reddit users responded with advice and reassurance. One commented: 'Similar situation happened to me and I just had to pay back about £50 a month for a few months. Just be honest and explain everything.' Another user explained: 'If you didn't have more than £6,000 on the last day of any of your assessment period, and it went to debts and living costs, then you'll be fine.'
The same user elaborated: 'The compliance interview isn't “we've found you out and now we're coming for you”, it's “we've received information, we need to get to the bottom of it”. Hence why they need the bank statements. If the bank statements reflect what you've said, you have nothing to worry about.'
DWP Rules on Capital and Inheritance
Universal Credit claimants are required to inform the DWP of any changes in circumstances, including inheritance payments. The DWP considers all money, savings, and investments both in the UK and abroad when assessing a claim. According to Gov.uk: 'To claim Universal Credit you must usually have no more than £16,000 in money, savings and investments as a single claimant or if you are living with a partner. If you have below £6,000 it will not affect your award.'
For savings between £6,000 and £16,000, Universal Credit payments are reduced by £4.35 for every £250 held above £6,000. The claimant's bank statements showing less than £30 suggest their capital is well below the £6,000 threshold, which should not affect their award. The DWP's compliance interview aims to clarify whether the inheritance was declared appropriately and whether any overpayment occurred.
