Decision Makers Guide - DMG45029

Meaning of deprive

The decision maker should note the following points about deprivation of capital.
1) The decision maker must treat applicant's as owning capital which they have deprived themselves of

• to get benefit or

• increase the amount of their benefit1.

2) The amount of notional capital in (1) . does not stay the same for good but is reduced under a prescribed formula2.
3) The decision maker should send any claim where there seems to have been deprivation to WF/DPTC GT before making a decision.

• WF/DPTC GT will advise

• whether there has been deprivation to obtain benefit and

• how to apply the diminishing notional capital rule.

Example

An applicant gives his brother £17,100 out of his capital of £20,000 before applying for the first time. The remaining £2,900 alone does not affect entitlement, but the original £20,000 automatically disentitles the applicant1. In this case the decision maker could treat the applicant on the initial application as still owning the £17,100 he had given away. But normally a lesser amount would be taken into account on a further application.