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Original poster

benefits question

24 replies

onelastchance · 26/08/2010 12:55

I may end u leaving my h as things are so bad. I'd move out and rent somewhere as i imagine he's refuse to.

I'm a sahm to 4 yr old ds and don't intend to go back to work for a while. I have some savings which are over the £16k limit. letting agency said that property choice is quite restricted if rent being paid by housing benefit.

if i move out and start paying rent with savings, can i apply for benefits when saving go under £16K?

OP posts:

Gigantaur · 26/08/2010 12:57

yes.

you would probably not be accepted for housing benefits with such savings anyway.

Original poster

onelastchance · 26/08/2010 12:59

Thanks, i know i wouldn't get housing benefit atm. tried using the entitled to website and it showed if my savings were under £16k would get housing benefit.
So i'm ok to use savings to start with and claims claim benefit when savings fall below £16k

OP posts:

Gigantaur · 26/08/2010 13:03

i would say that that is probably correct.

I would however also say that benefits are there for those in great need. I understand that you are forced with leaving your home and starting again and this will take time.

but if you are able to return to work i must say that i think it is your duty to do so.

It may not have been your intention to return until your child is a little older but i think circumstances force our hands a little.

Plus £16k will not last long. surely it is better to use your savings for something better than simply living expenses

Starbuck999 · 26/08/2010 16:31

Do you mean you will apply to have your rent paid by HB even though you will have just under 16k in the bank? Plus whatever child maintenance your ex h will pay to you for your 4 yr old.

I think morally you should either live off your 16k - paying your own rent, or get yourself a job when you child starts school so you dont have to rely on benefits.

TheButterflyEffect · 26/08/2010 16:38

This reply has been deleted

Message withdrawn at poster's request.

Original poster

onelastchance · 26/08/2010 18:39

starbuck, i will live off the money but it will only last a certain amount of time. I'm building up a little business of my own so hoping to earn some of my own money from that too, but it's early days.

OP posts:

missedith01 · 26/08/2010 20:44

Bear in mind that the benefit applications will ask about your savings and, if you have less now than you used to have, how those savings were used. Be prepared to account for how you are spending your savings. And the benefit calculation takes account of your £15,999, through a system called tariff income, so the more savings you have above £6,000 the less benefit you get. So that takes care of the morals and the duties.

LadyLapsang · 26/08/2010 21:58

Do you own / have a mortgage on your house at the moment? If so, your interest in the house would be taken into account if you applied for benefits to live somewhere else.

If you are the person with care for your DS, and it sounds like you are, I would try to stay put if you can (although realise that can be really difficult, but sometimes when they actually realise you mean what you say I think they go - not all the time though).

Original poster

onelastchance · 26/08/2010 22:52

i hve a joint mortgage with dh. What do you mean about it being taken into account?

OP posts:

Original poster

onelastchance · 27/08/2010 10:16

bump

OP posts:

expatinscotland · 27/08/2010 10:35

From October 2011, those lone parents whose youngest child is 5 years and above will become eligible for Jobseeker's Allowance rather than Income Support. Existing Income Support claimants will be transferred to JSA from April 2012.

So in reality, as your child is already 4 and you have savings over £16K, which makes you ineligible for Income Support at all, I'd try to plan things so that you are working, tbh.

It's not going to be an option to stay on benefits just because you don't want to go back to work for a while, unfortunately.

Futhermore, the letting agent is spot on, especially because the amount of housing benefit you're eligible to receive is going to be subject to caps come February next year, and lowered for those on JSA.

I think you need to consider alternatives to going on benefits in your situation.

Original poster

onelastchance · 27/08/2010 10:45

Supposing the littl business i'm setting up works, will that cout as working?

OP posts:

expatinscotland · 27/08/2010 10:48

If you are registered self-employed, it should do, for tax credit purposes. But you'll still need to pay rent out of savings and then when you drop below £16k, apply for HB/LHA. But your landlord might not be able to accept HB if he has a mortgage on the property.

rainbowinthesky · 27/08/2010 10:53

Surely if you have a joint mortgage on a house you wouldnt be entitled to hb anyway? I know nothign about benefits but it doesnt make sense. I think you need to get some good advice before leaving the family home otherwise you may end up losing your savings pretty quickly.

Original poster

onelastchance · 27/08/2010 11:05

I don't know rainbow, i don't don;t anything about this who;e situation really. Just know i can't carry on like this and that's why i'm asking for advice

OP posts:

rainbowinthesky · 27/08/2010 11:08

Keep it bumped during the day and you will get some more knowledgeable people posting.

LadyLapsang · 27/08/2010 18:42

Hi there,

If you have an interest in a property then that is an asset. So, if you own a house with your DH worth £250,000, with a mortgage of £190,00 then there will be potentially £60,000 there of which you would be entitled to a share (say 50% as a starting point). So, if you made a claim to benefit I think they would take that £30,000 plus your £16,000 savings into account.

Also, if you become self employed I don't think you will be able to register for JSA as you are not unemployed, although you may be able to claim means tested in work benefits like family credit.

I would reiterate what I said before, do try and stay in your home, especially as you are buying. If you stay put and have no income then it's possible in time you will receive income support help with the mortgage. I think you should have a chat to the CAB or maybe the lone parent advisor at the Jobcentre, they should be able to give you up to date accurate advice.

expatinscotland · 27/08/2010 20:30

'If you stay put and have no income then it's possible in time you will receive income support help with the mortgage.'

This would be very shaky ground, though, as the rules regarding income support are going to change in a year, and, as her child is 4, that means JSA rather than income support if her savings doesn't run out before that time and tranfer onto JSA shortly thereafter. Furthermore, any help provided for mortgage holders is in the form of only on the interest, and subject to caps and a waiting period.

The biggest financial mistake people often make when splitting is trying to hang onto a house they cannot afford long-term on their own, particularly without full-time work.

You would probably be better off seeing a solicitor than assuming the benefits route is a) an option for you at all b) a wise decision to work towards financially, particularly before the non-emergency budget is announced this Autumn and the full extent of cuts and rule changes is made known.

It's possible to apply for separation or even divorce whilst living in the same house as the spouse, but you do need to see a solicitor.

Original poster

onelastchance · 27/08/2010 21:14

Thanks. i know there's not way i could keep the house we live in on my own. there's probably about £100k equity in it. however in the area i live you can't bu muvh for under £200k.

So if the qyuity in my house counts as capital, i clearly won; get ant housing benefit!

probably best staying put and see a solicitor about how much i would get in a divorce settlement?

OP posts:

expatinscotland · 27/08/2010 21:25

I'd definitely see a solicitor in a case with so much in savings and equity and assets and stay put for now.

Again, it's possible to stay in the house with the spouse and be divorcing, but you need to see a solicitor.

Don't use the savings or do anything till you've done that.

Original poster

onelastchance · 27/08/2010 21:27

thanks expat, that sounds like good advice :) i'll arrange to see someone as soon as i can

OP posts:

expatinscotland · 27/08/2010 21:31

Don't be browbeaten or bullied into taking or going for less than is fair if at all possible, another common mistake many women (including myself in the past) make because they feel guilty for breaking up the marriage/family.

Original poster

onelastchance · 27/08/2010 21:53

I don't know how much i'm likely to get. i know it will be at least 50% but someone said as i have ds and haven't worked since he was born, plus dh has high income, i might get as much as 70% of the equity?

OP posts:

LadyLapsang · 28/08/2010 11:42

He would also need to pay maintenance for your child and sometimes you can get some maintance yourself, although as I understand it that's usually only the case when you have been married a long time and have given up your career, but you might be able to get maintenance for a few years until you return to work, sure a good soliciter would advise.

What are your respective pension situations? If he has a bigger pension pot than you, you should gain there under pension sharing arrangements(also applies the other way round if your pension is larger).

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