To ask what you would do in my situation

[Namechangedforthisonebecause]

I am in a tricky situation and cannot think of a way out. Posting here as a last resort. Any ideas or suggestions welcome, no matter how seemingly small. I'm looking for a practical solution rather than judgement or sympathy. Thanks.

I'm a solo mum with an 18 month old. I was sexually assaulted hence no father on the scene, don't want to give further details as it may be identifying. Do not receive any child maintenance. Due to high risk I had to leave my job and home when pregnant. I now live in London. I was initially offered a place in a DV shelter but a family member stepped up and started renting me a room in a small flat (I have been in this room for nearly 2 years with my daughter). It's cramped, better than a shelter but not a long term solution.

I was given a compensation payment that was intended to be used for tuition fees. This is because (despite never taking out a loan) I am not eligible for sfe funding due to Sfe's previous study rules.

Because I have money into he bank, I cannot claim UC as I am above their savings threshold. However, since I don,'t have an income I have no choice but to use the money that was supposed to be for tuition fees for daily expenses. (This is crushing for me as university was the long term 'solution' to pursuing a career that I might be able to support DD and myself without relying on benefits). At the moment it is looking like I will never be able to study/finish my degree because I would have to pay all the tuition fees out of pocket.

Next comes the harder part. With no income I cannot rent privately, nor can I take out a mortgage. So I am stuck where I am until I get a job.

I cannot afford childcare. I cannot return to my previous line of work because of unsociable hours and other complicating factors so I would most likely need to take up an entry level / relatively low paid job. This would likely cover daily living expenses but since the cost of childcare is more than what I spend each month (I live in a high cost of living area on central London) currently I would be worse off and wouldn't get to see my daughter. Ideally I would move to a cheaper area but of course no-one will rent to me without an income ... It just doesn't make financial sense to go back to . I am also struggling to find anything suitable - ie. that matches my skills and needs for flexibility.

I have tried contacting EVERYONE. I cannot get through to citizens advice. I have tried contacting every service imaginable and I get the same line " we are sympathetic but cannot help you".

What I am currently looking at is this: living off my tuition fee money until DD is old enough to go to school OR it gets used up and I can claim UC. In the meantime I lose the opportunity to study and find long term financial security. This also means staying in a Single room with my daughter (and shared bathroom) for potentially another 3 years!

I want to improve my circumstances now, but instead it seems I have to wait until I have nothing before anyone will offer support to get back into work etc.

I have already lost all my clothes and possessions. I can't replace anything as I have nowhere to put it!

So yeah, I feel completely trapped. I am very motivated, and have always been a hard worker and have lived within my means. I have never claimed benefits before. I had saved £20k towards a house deposit before I was pregnant and received £18k for tuition fees. 2 years ago I had £38k in the bank and I am watching that slowly disappear on food, bills, rent and baby costs.

What would you do? Can you think of something I haven't thought of?

Forgot to add to add one thing. I have started a diploma course equivalent to the first two years of a degree (significantly cheaper than uni fees). I will be able to transfer these credits to the Open University so I will only need to pay one years tuition fees to finish my degree. If I can find a solution now then I may still be able to finish my degree in the future. 😊

Sounds very tough. I’ve sent you a DM with a suggestion re a charity to contact.

If I was you. I’d move out of London, and use the savings to pay 6 months rent upfront on a property to avoid problem of getting a rental without a job or guarantor. If you go somewhere relatively cheap, your deposit will probably pay 30% of property price, so you wouldn’t need to earn too much to qualify for a mortgage. Head north. Once working you should qualify for a mortgage within a year. There’s plenty of areas you can buy a terrace for 100k or less (some areas of Durham you can buy a terrace for 50-60k) so you don’t need to be earning a fortune. Also, in my area (Zone 6) you could buy a flat for less than 100k and you own your share of it (so say 25% share with your savings) and pay no rent on remainder, so part ownership but you’re not having to pay rent on remainder. Service charge is quite high £220. If there is nothing keeping you in London, leave. I’ve been stuck in this area for years renting waiting until my youngest child finishes education, one year to go. Means i’ll be paying a mortgage right up until retirement.

Once you’re on the property ladder you’ll qualify for UC as you won’t have the savings anymore. Don’t stay in London and let all those savings be wasted on living costs. Once you’re working you can continue studies part time and have a 5yr plan for a better job / income.

Good luck

Thanks for the reply. I have applied to over 60 rental properties in the north and not one would accept me without an income, even with me offering 12 months rent up front. The whole process has been crushing. I thought along the same lines as you but I am really struggling to make it happen in reality. I also feel really worried about using everything on property because it is just me and I have to be able to support my daughter.

Sometimes the best thing to do is to wait it out, even if it’s hard.

The diploma is a really good idea, and that should be your focus. Hopefully you can manage to work your way through that, and get the credits.

At either 2 or 3 (depending on circumstances) you should get 15 hours free childcare which will give you a bit more time, and which will change the balance of work income vs child care costs quite a lot.

In your position I would wait until that point to look for a job, and then accept just having to spend a big proportion of income on childcare so that you’ve got the income history for flat hunting.

By the time your dd starts school you would then be in your own place with a job and a diploma, ready to start thinking about open university.

Its gutting that means that you will lose your deposit/tuition money but I don’t think that there is a way round that unfortunately. You sound very much like someone who will be able to save that again one day in the future.

Like pp, I would try and head north and put 6-12 months outright on to a rental property. If you have had no luck through agents, choose an area and join Facebook groups where you can ask about properties to rent. We had the same issue recently after I had cancer and were able to put 12 months down to secure the rental. Try open rent too.

i think i would then set up as a childminder so i didn’t have childcare costs and had income, and then if you could transfer your course to open university you could study in evenings and weekends.

Wishing you luck, I was a single parent from pregnancy and it was brutally hard and I felt trapped too. DS is a teenager now, and it gets easier I promise x

Thanks. The thing that frustrates me the most is that I could just spend money and then apply for UC (I don't mean blow it on expensive holidays because that would be depreciation of capital but rather not really budget). At the moment I am being so careful trying to stretch my money as far as possible and some days it feels as though I am being punished for being responsible. If that makes sense?

I'm in the second year of the diploma so feeling good about that. I am confident that someday I will finish my degree (not finishing isn't an option), it's just very annoying that I will have to save £10k to be able to do it when I have never taken out a student loan. I have worked my whole life, paid my taxes and am not allowed a student loan because I self funded a course previously (a very specific course related for career I cannot now pursue as a solo mum). I am ranting but it does feel unfair.

I realise I'm not going to get anywhere feeling hard done by which is why I am focusing on practical solutions but blimey, it really is a tricky one!!

Can you Somone in your family look after the money so you can claim UC (I don't know the legal repercussions of this so not sure if it's a stupid idea?)

Unfortunately not, that would be fraud.

Lots of universities have uni accomodation for families and on site nurseries. I would like at finding a uni that offered both those things and the relevant course you need. I would also have to be super super sure the course led to almost guaranteed work.
Have you any interest in any healthcare related roles? Many NHS trust make good use of apprenticeships including degrees. These can be in support areas (finance etc) too. An apprenticeship role pays you to study. There are also many degree apprenticeships in many fields with many companies. They are competitive but in your circumstances a much better option.

Have you had proper advice about having the compensation put into a trust so it doesn't count as savings?

Compensation, assuming from the criminal injuries compensation or the likes, is normally disregarded for the first 12 months for benefits, and it is allowable to put it into a personal injury trust.

You need to speak to a specialist advisor who knows about how to deal with compensation awards.

If you have areas in mind can you look to see if the councils have landlord schemes where they match social tenants with landlords? I don't know what the criteria are to join these schemes as a tenant but worth a look, as it reduces the risk for landlords.

Yes, I totally feel for you.

Money wise, if you’re already in the second year of the diploma could you pay up front for the open university course and claim UC a bit earlier?

That might help you feel like the scrimping has been worth it a bit more?

Landlord Letting Scheme | Leeds.gov.uk https://share.google/jRiKNtJGVfJDOG1Kt here's an example - it says "most tenants receive UC" which implies some don't.

No I haven't. Although I may be too late now to explore that avenue

No I haven't. Although I may be too late now to explore that avenue

Speak to someone anyway. You may be out of the disregard period, but you might be able to set up a personal injury trust still (I don't know as it was done right away here, but it's worth exploring it in your situation)

It's such a vicious circle and I feel angry on your behalf that it has been so difficult for you to access support. You've been through a lot and seem to be being very brave and determined. The upper limit on the capital you're allowed to have before you can claim benefits is foolish as it's low because it hasn't changed for ages - it ends up trapping people going through difficult life experiences like yours in poverty, which (apart from being cruel) means they cost the state far more than if they'd been able to use benefits to get them through the bad patch! Now I'm ranting!
I think in order to break through this, I would book the uni course anyway - have you asked if you can pay upfront? Then get benefits in place once you're below the (£16k?) capital threshold for claiming benefits? Can you talk to the finance dept at your uni about paying fees upfront - I imagine they may help if they know your situation? Does your uni have a creche, as combined with the free hours of childcare that could really help you? Also I think the government has just brought in more free childcare, I'm not sure when it starts: 30 hours if you're working a minimum of 16 hours a week, after your child is 9 months old?
Once you have childcare set up, you can combine studying for your degree with part time work and claim benefits, still keeping your £16k saved so you have it to restart saving for your house deposit when you finish studying and can get better paid work and come off benefits?

Thank you!

I wonder if it's worth a search for charities and grant making trusts that specialise in either the profession you worked in before or the one you're aiming to join.

There are a surprising number of small charities that aim to help specific "fallen on hard times" people from particular industries. But you have to search to find them. I feel like your case is so specific and difficult that speaking to a small charity with some discretion over what they fund is going to work better that trying to fit into inflexible govt rules.

caba | the charity for Chartered Accountants https://share.google/9Be12g5xmIHnLYDx2

This kind of thing (I randomly picked accountants).

Have you looked at nursery and child minder costs recently? As of this month, all babies and children over 9 months get 30 funded hours (22.4 hours a week stretched) if the parent works. Although most places won’t be free, it takes a large chunk off childcare fees plus you can also get tax free childcare which takes another chunk off the bill. It really shouldn’t be more than you earn anymore.

In your position I would transfer the amount needed to bring my savings down to my DD. Claim UC and get rent assistance too.

Your DD will have a financial cushion when she is older and you will have started the process to get out of a single one bed room.

Consider relocating. Once you go on a London borough housing list they will do anything to get you to relocate.

Full disclosure I’ve never claimed benefits but if I had to I would definitely protect some of the capital and put it in my DC’s name. The main thing to do is to get more suitable accommodation sorted before DD starts school.

Pretty sure that’s not allowed, you have to show bank statements and if investigated it would be fraud.

You're advising OP to break the law.
People can't hide money because they don't want to spend it and want to claim benefits instead.

This would be fraud with prison time

Children can have savings solely in their name and it not effect UC. I am sure I have read this on another thread.

Don't do anything against the law OP as I said I’ve never claimed benefits but if you can legally gift some of this money to your DD do so.

The sooner you can get help to get housing the better.

You’ve tried paying 12 months up front. No one will help you. No landlord will touch you.