Daniel Millar, a grandfather from Motherwell, Scotland, won £80,000 in the National Lottery and believed his life would change for the better.
At the time of his win, he was receiving government benefits, including income support, housing benefit, and council tax reduction, which helped him cover his living expenses.
However, Daniel didn’t realize he needed to inform the Department for Work and Pensions (DWP) about his lottery winnings. Not knowing the rules, he started spending the money immediately.
Daniel spent the money on what he thought were meaningful and necessary expenses.
He gave financial gifts to his two sons and daughter to help them, funded two family holidays to create special memories, renovated his home, and purchased new clothes for himself and his wife.
He felt he was making life better for his family and himself. However, within weeks, the entire £80,000 was gone.
After spending all the money, Daniel was contacted by the DWP. They had been informed about the large deposit in his bank account by the tax office.
During a meeting with the DWP, Daniel was told that his benefits would be stopped because he had failed to report his sudden financial gain.
The government viewed his spending as “depriving himself of capital,” meaning he had used up the money too quickly to qualify for benefits again.
Without benefits, Daniel and his wife faced serious financial struggles. His bank account was overdrawn by £7, and his only income was a small personal independence payment of £350 a month, along with a weekly pension of just over £1.
His wife, who is his carer, received £62 per week. Without the housing benefit or income support they once relied on, they had to pay their rent, council tax, and other essential bills with little money left for everyday needs like food and transportation.
Daniel admitted he didn’t know he was required to tell the DWP about his winnings and expressed deep regret about the situation.
He explained that he spent the money with good intentions, never imagining it would lead to losing his benefits.
His wife shared her frustration, saying the rules felt unfair because they had used the money to improve their lives, not waste it.
This story highlights the challenges that come with managing unexpected financial windfalls. It shows how important it is to understand the rules around benefits and to report any big changes in income to the proper authorities.
Many people who receive means-tested benefits may not realize that lottery winnings can affect their eligibility.
