How did you manage without benefits once you got your financial settlement?

[Horseshoe21]

I am separated and due to get divorced later this year, I will potentially receive a lump sum settlement which will probably take me over the savings threshold, meaning i will no longer get Universal credit.

I am renting and get Housing Benefit and also have a 4 year old son with special needs. I am on the council housing list but to be honest, I really want to try and buy my own place with any settlement I get and use it as a deposit.

I guess I'm just scared, if I don't get a settlement I can remain on benefits and work part time , but my life will not progress, and I may never get a council house in the area that I want etc.

So I will be stuck renting and we are in a tiny flat.

If I do get a settlement, my benefits will stop abruptly and I will be responsible for paying my own rent whereas at the minute Housing Benefit pays it.

But I do want to be able to have the lump sum as security and
to move forward with my life and have a nice home for me and my son. I'm.just terrified, I feel like I'm stuck in the Benefit trap. I'm worried I will regret getting the divorce and the financial settlement as I will have to stand on my own 2 feet.
I know its pathetic. What would you do? Stay on benefits and carry on as I am with no potential for growth but at least I have my rent paid currently and could get a council house or flat.

Or try and do better for myself , get on the property ladder forfeit the benefits, even though I'm bloody terrified that I won't manage financially?

I think you have 6 months grace to use the lump sum to buy a property before the threshold limits apply.

Get on the ladder. You have 6 months- imagine how less stressed you'd be in stable housing.

Time to work through the fear and set a good example for your DC

if you buy you won’t get help towards mortgage but may still be entitled to Uc to top up your earnings.
I guess we need to know how much the settlement would be, if it’s more than 16k your UC will stop if between 6k and 16k your benefits would reduce I think it’s by £4.50 for every £250 over 6k
also to add that your child is in full time school so you’ll be expected to do work that brings in 35xminimum wage weekly.

buting your own home is only ‘Stable housing’ if you can afford the mortgage and the upkeep of the property.
renting can be stable especially if you get with housing association or council.

Think carefully about the costs of having your own house. If you buy the house but have nothing left afterwards, then you’ll struggle to maintain it. Benefits aren’t enough to fix stuff and insure a house. But if you have a sum left over after buying, and can get a job, then it makes more sense.

I would see if there were any shared ownership properties available. That way you can claim housing benefit in the rented part but you’d have security of tenure.

I was going to say - worked many long hours - but then I saw your child has SN.

Will they be spending time with your ex? I would try and do v long days when mine were with their dad. (Luckily work was flexible)