LS v Department for Social Development (IS) [2012] NICOM 327

The appellant had sold her house and received a large sum of money in August 2007. The appellant had claimed income support in September 2008 indicating that she did not exceed the capital requirements prescribed under Section 130(1) of the Social Security Contributions and Benefits (NI) Act 1992 and outlined under regulation 45 of the Income Support (General) Regulations (NI) 1987. The appellant argued that much of the money that she received from the sale of her house had been stolen, lent to friends or expended in other ways. The appellant claimed to be bi-polar and her legal representative noted that when in a state of euphoria, the appellant squandered the money realised from the sale of her home. The appellant argued that the tribunal’s findings, which found that she had actual and/or notional capital that exceeded the prescribed amount, were incorrect. The tribunal had applied the incorrect test when assessing whether the appellant purposefully divested herself of the capital, ‘reasonableness’ rather than ‘significant operative purpose’. In addition, the appellant argued that the tribunal took into account irrelevant considerations in relation to medical evidence on the applicant’s mental health and erred in its evaluation of this evidence as a reason for the appellant disposing of capital obtained from the house sale.