A Universal Credit claimant has expressed anxiety over an upcoming benefits appointment after spending a £10,000 inheritance within months. The parent, who shared their story on Reddit, used the money to purchase furniture including two beds and a sofa, and to clear existing debts. With no savings left, they now rely solely on their monthly Universal Credit payment from the Department for Work and Pensions (DWP).
DWP compliance interview triggered by inheritance
The DWP contacted the claimant about the inheritance and requested bank statements. In a Reddit post titled '[Please] can anyone help.. compliance interview for being in receipt of inheritance', the claimant wrote: 'I received a call saying I have a compliance interview, then I went on my journal it also said entitled to benefit [appointment] as well on same day, not sure if its the same thing.'
The inheritance was paid in two installments: approximately £7,000 first, which dropped below £5,000 within days, followed by about £3,000 a couple of months later. The money was spent rapidly within a couple of months on debts and home furniture. The claimant has no savings and lives month-to-month on Universal Credit, having only restarted their claim a few months ago after a previous closure due to moving from Employment and Support Allowance.
Claimant's financial struggles and anxiety
The claimant is five weeks behind on bills and rent due to the gap in benefits. They explained: 'I'm not used to change etc, I didn't answer a message on my journal as I didn't know about logging in etc. So I'm back on my a*** after having to borrow money etc for five/six weeks while waiting to reclaim.' The DWP now wants bank statements from May to June, which show less than £30.
The claimant added: 'I don't get why its taken this long to contact me, if I have done something wrong why did they leave it all this time, 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, I'm not good with all this stuff.' They suffer from severe anxiety, emotionally unstable personality disorder, and depression, and are a single parent with no support network.
Other Reddit users offer reassurance
One user 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 said: '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. And if you had more than £6,000 but less than £16,000, the overpayments won’t be that big.'
The same user advised: 'Understand that they don’t know what you know, they only know whatever information they’ve received. 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, and they don’t suspect you were trying to deprive yourself of capital in a short space of time (which, if the money went to living costs and debts, is extremely unlikely), you have nothing to worry about.'
DWP rules on savings and inheritance
Universal Credit claimants must report all changes in circumstances, including inheritance payments. According to Gov.uk, to claim Universal Credit you must usually have no more than £16,000 in money, savings and investments. If you have below £6,000, it will not affect your award. If you have between £6,000 and £16,000, your payments will be reduced by £4.35 for every £250 you have above £6,000. The DWP takes into account all money, savings and investments in the UK and abroad.
