A Universal Credit claimant recently opened up about their worries after spending a £10,000 inheritance within months and now facing scrutiny from the Department for Work and Pensions (DWP).
The claimant, a parent, said they used the inheritance—received in two installments about two years ago—to buy essential home furniture such as beds and a sofa. They also cleared outstanding debts with the money. However, the funds were quickly depleted, and they now rely solely on their monthly Universal Credit payments.
Recently, the DWP contacted the claimant regarding the inheritance and requested bank statements covering the period from May to June. The claimant expressed confusion and anxiety over the sudden compliance check, explaining that their Universal Credit claim restarted recently after a period of delay due to transitioning from Employment and Support Allowance.
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In a Reddit post titled “[Please] can anyone help.. compliance interview for being in receipt of inheritance,” they wrote: “I received a call saying I have a compliance interview and also an appointment for entitled benefit on the same day. I’m not sure if these are the same thing. I got inheritance about two years ago, split into two payments—around £7,000 initially, which dropped below £5,000 within days, and later approximately £3,000. The money paid many debts and furnished my home with beds and a sofa. It was spent rapidly within a couple of months. I have no savings now and live month to month on Universal Credit. My claim restarted a few months ago, but I’m behind on bills and rent. I wasn’t familiar with using my online journal, so I missed messages. Now I feel overwhelmed with anxiety and depression, and I’m worried about having to pay back two years of benefits because I didn’t declare the inheritance intentionally. It’s just me and my son, and I don’t have family or friends to support me.”
Other Reddit users empathized and advised the claimant to be honest and cooperative. One user shared their similar experience, saying they only had to repay £50 monthly for a short period. Another clarified that as long as the claimant did not have more than £6,000 on the final day of any assessment period, and the inheritance was used for debts and living costs, there should be no major issue. They emphasized that the compliance interview is a routine check to clarify information, not an accusation.
Claimants are reminded to report all changes in their circumstances, including inheritances, to the DWP. Universal Credit rules specify that claimants must typically have less than £16,000 in savings or investments to qualify, with the benefit being reduced if savings exceed £6,000.
According to Gov.uk:
- Below £6,000 in savings will not affect Universal Credit payments.
- Savings between £6,000 and £16,000 reduce payments by £4.35 for every £250 (or part thereof) above £6,000.
Engaging openly with the DWP and communicating any difficulties can help ease compliance processes and possibly secure deadline extensions.