× Search rightsnet
Search options

Where

Benefit

Jurisdiction

Jurisdiction

From

to

Forum Home  →  Discussion  →  Other benefit issues  →  Thread

Universal credit- is this capital?

SarahP
forum member

Derby Advice - Derby Homes

Send message

Total Posts: 28

Joined: 22 June 2010

My client has a 9 year old son. On divorce from his father, her solicitor advised her to take out a policy to
protect against potential loss of child maintenance if anything happened to her ex husband. Ex husband sadly died last year.  The policy (family income benefit plan) paid out £60k . The policy was to insure against £500 child maintenance each month and the payout is meant to last until son is 23.  Client declared the payout and her UC has been stopped because it is being treated as capital. I can’t find anything in the regs that would disregard the money but it feels unfair she loses her UC when child maintenance itself is disregarded. Anyone have any thoughts? Thanks.