Client given money to purchase home under right to buy

My client lives in a Housing Association property (used to be a Council Property). He is entitled to a large discount if he buys the property. He currently receives ESA income-related support group for him and his wife, HB, Council Tax Reduction, PIP, CTC and CHB. He has no capital. His father wants to give him the money to buy the house under the right to buy scheme which would amount to £35,000.  How would this be treated? I have already discussed the loss of HB and responsibility for repairs, insurance etc to him. However, he is worried he may lose his ESA (ir) CTR and the money be classed as capital he has received and disposed of. Thanks

It would be better if the money doesn’t pass through his hands at all., or not until the very last minute - you don’t want to have to get into arguments about Quistclose trusts and so on.  There is no specific disregard in the ESA regs for a sum of money received as a gift intended for the purchase of a dwelling, so there is a risk it would be counted as capital if it spends some time sitting in the claimant’s bank account.  Any reason why the father cannot pledge the money but not actually part with it until completion day?