Is this a change of circumstances

[Magrew]

I have a friend I have been assisting in dealing with managing her benefit issues. She is in receipt of UC including enhanced LCW, she also receives PIP at the rates for enhanced care and mobility. Around 6 years ago she split from her partner and remained in their home with a shared mortgage, he moved out and continued to pay the mortgage because she could not afford the mortgage relying only on benefits. In the meantime she registered homeless and has been waiting to be rehomed ever since. She has now agreed to transfer her equity in the property in recognition of the 6 or so years she has been living with no contribution to the mortgage and to have the title of the property signed over solely to her ex-partner. She has never received any housing benefits against the property because she has been paying no rent.
Is the transfer of equity a change of circumstances that needs to be notified in her UC Journal?

[redstar]

If she makes fiscal gain needs to be included universal credit notified .. ots a certain amount effects not sure of amount but you have to let them know of any fiscal change or face consquences

[Magrew]

Thank you for your reply.

There is no fiscal gain in any manner and there is also no change that impacts any current received benefits. She receives no support for housing costs.

[Wylderose]

A couple of things to add:

1. Your friend's name needs to be removed from LandReg as so long as her name is associated with any property, she will be deemed to have a vested capital interest.
2. It also needs to be clearly set out how much she owed her former partner and why she owes it and that signing the property over to him/her is in full and final settlement of that debt. Otherwise the implication and adverse inference would be that she deprived herself of capital (Property) in order to gain benefits.
3. She would also need to move to a "rental property" that is not associated with the one in which she is living if she wishes to claim Housing costs as the Universal Credit regulations mirror closely those of the Housing Benefit Regulations and there is a possibility that she could be excluded from obtaining Housing costs if she remains in the property if Universal Credit deem the transfer of ownership as "Contrivance to obtain benefits"
4. You say too that the change will not impact on her UC - it may not impact on her UC, but if she is moving into homeless accommodation, then she may be eligible for Housing Benefit even with UC in payment, and they would certainly be asking about the former home and if deemed to be deprivation of capital would exclude her from Housing Benefit altogether leaving her with huge rental costs that UC will not cover.

Is is a change of circumstances that requires notification = Yes it is.

If she does not tell them and they subsequently find out she faces the immediate stoppage of her benefits until such time as they are satisfied that there has been no financial gain.

Sorry I know it is good and bad news, but your friend needs to know what she is looking at