Personally I dont know how strict they are about deprivation of capital, I will find out probably in 3 months when they respond.

After I had my lump sum of DLA, I sent £1500 to capital one to relieve interest bearing debt, this to me was a sensible use of money as it in the long run saved me money on interest payments, the DWP possibly want people to default on debts or just make min payments even tho its a bad way to manage money but so they have maximum money on hand for things like food, but as I had £6000 in the bank I didnt see myself as compromising my ability to eat so I made the payment, I also brought myself occasional treats, but there was never any malice in my spending that I did it so I would get below any thresholds, it was just me spending money. As I understand it the law is supposed to be forbid deliberate spending of money in order to qualify for benefits, but from what I have read on forums and websites is that the DWP seem a bit stricter then that in that they want you to only spend money on essentials only regardless if its not deliberate spending to get benefits.

Also I only found out recently that if capital breaches are caused by benefit backdated payments like mine was with DLA, then it is supposed to be either disregarded for a year if its an error of law payment (usually the case on tribunals), or for the life of the benefit if its a DWP error (like these ESA IR backdated payments are).