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Deprivation of Capital

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Hello, I’ve got a situation where an individual has a drug habit of over 12k from PIP and ESA since 2015.

Appointee is now aware of the situation.


For three years they’ve not sought help,

however has autism and depression.


During assessments he denied he was a substance misuser, but still being treated by a doctor.


User has gone on to seek ongoing help for problem and a report to social services has been made. 


Could this be seen as a deprivation of capital?

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Hello and welcome to CAG.


I've moved you to the Benefits forum where people should be along to advise later.


Can you tell us more about the report tp social services please? Also, I'm not sure what your point is about £12k from PIP and ESA, could you elaborate?


Best, HB

Illegitimi non carborundum




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Sorry, are you saying he has had £12k in savings since 2015 or that he has spent £12k on drug since 2015?


Presumably the latter, if so then it would be highly unlikely, unless he spent it all in one go, in order to obtain means tested benefits.

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User has ongoing problems with mental health.

Looking at Bank statements from four years, they’ve spent roughly 12k.


They currently have PIP and ESA for depression/anxiety and for autism.


the appointee has just found out and is livid.

She deals with their main expenses, in regards to council tax, and housing. 

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Deprivation of capital is very hard to prove,  there has to be evidence that someone has purposefully deprived themselves of capital in order to claim/claim more means tested benefit.


An example could be that someone has come into money, perhaps  from a gift in a will, if they then spend it on something that is not required for day to day living such as say a piano, and then makes a claim to an income based benefit such as JSA (IB), Income Support or Universal Credit and only declares an amount of the remains under the threshold then this would be considered as depriving themselves of money they had in order to get/get more benefit. 


If the person in question has spent money over a period of time whilst already claiming benefits then this would not be considered as deprivation.

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Your post is a bit vague!


What type of ESA? Income (IR) or Contribution (CB)


Deprivation is about savings (not spending) which only matters for IR ESA and doesn't matter for CB or PIP.


You talk about they have spent 12k on drugs.... say for example I drink a bottle of Jim Beam a day for 4 years at £16 a pop that's £24 000 (give or take a ton). What they spend their money on or how much of it is not the issue of the DWP.. Unlike the red tops imho if a disabled person is made happy by spending it on cocaine and hookers then I'm all for it. 


If it's an addiction issue then since they're seeking help I'd concentrate my efforts on that. 

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  • 2 weeks later...


its regular outgoings of payments.

It’s income related they’re on, not contribution based. 

Mum and applicant were totally unaware of the rules in regards to deprivation of capital.


On income related ESA but claim housing benefit and council tax support.


He hasn’t came into a huge chunk of money.

It’s been spent over a duration of four years.

appointee’s livid, and worried that he’ll be homeless.


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So nothing to do with deprivation of capital, but bad choices of how they spend benefit monies.


Sounds like they are on a downward spiral to living on the streets and getting into an even worse situation.

We could do with some help from you.



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