Benefits cap??!

[whatmoney]

We sadly had to sign up for universal credit in September after DHs self employed business went under during lockdown. We haven't had an income since March and have been living off savings since, hoping things would improve but they never did!

So while he searches for a salaried job, we're on benefits. We had our first payment last month, and whilst it doesn't even cover our rent, we are somehow managing with a combination of flexibility from bill suppliers, landlord etc.

Our second payment due next month has reduced by 30%!!! The reason given was the benefits cap. There's no way we will cope on this money. We'd have to go to a food bank or ask the local council for food vouchers. Not sure what will happen to our phones if we can't pay them, or access to internet etc. Our landlord will probably evict us and we have no money to move (moving costs and deposit just isn't accessible to us right now!), we have no family to take us in.

I thought there was a grace period re benefits cap? We don't intend to stay on benefits for very long but even a short few months on our new UC income will land is in a whole world of trouble.

Can anyone shed some light?

There is a 9 month grace period:
"If you’re making a new claim for Universal Credit, the grace period starts from either:
the day after the last day you worked
the payday when your earnings went below the earnings threshold (this was £569 up to 31 March 2020 and is £604 from 1 April 2020)"

Does that shed any light on your situation?

@unmarkedbythat I think so? We haven't had a penny of income since March! I'm so confused. I don't understand.

My advise would be

Application for social housing, put in now in preparation

Make sure council tax reduction benefit is applied for, also make it your priority bill. If you have trouble paying asking immediately for payment plan

Apply for discretionary housing payment from council, this can take weeks, if not months to be looked at so apply now for this incase your successful

If your landlord issues eviction notice then go immediately to council for advice, most likely stay until evicted.

Sorry your in this position

Are you both seeking work?

Why on earth did you wait so long before claiming benefits? It's been 7 months since March.

It would be worth checking the UC award to make sure the amount is correct and you're getting all the elements you're entitled to. We can't really do it here on a mumsnet thread without a lot more information. But you could contact citizens advice help to claim service and ask them to check for you: www.citizensadvice.org.uk/benefits/universal-credit/claiming/helptoclaim/

You should also claim Council Tax Reduction if you haven't already done so.

I assume there's a reason you're not working yourself; looking after young children or perhaps disability/health reasons?

@ivykaty44 thanks so much for this advice, really helpful!

My DH was a high-ish earner so that's how we've managed to live solely off savings for 6 months and we don't anticipate being on benefits for very long.

I was SAHM (very young DC) before everything went tits up but yes we are both currently looking for work!

We've had our council tax reduction already processed. Really don't want to be evicted though as we can easily afford the rent once DH finds a job (a job I'd find won't cover everything but it would help). This whole situation is given me massive anxiety, I feel sick to my stomach and struggle to sleep most nights.

@AnotherEmma when everything shut in lockdown we thought everything would be over by now and we'd have income again and we scrimped along on savings till now 🙈 We've never claimed before and didn't know where to start! I regret not doing it earlier for sure.

Yes, youngest DC is only 1.

Thank you so much for your help! I'll ring CAB.

Any savings under £6k are disregarded for benefit claims so you can and should claim even if you have savings, anything between £6k and £16k will affect your benefit entitlement but won't necessarily disqualify you (above £16k you can't claim means-tested benefits such as UC or CTR). If you'd claimed straight away you could have used savings to make up the shortfall while looking for work.

Here's hoping you and/or your DH find work soon, best of luck. Meanwhile do contact citizens advice as they can help with budgeting, grant applications and food vouchers if needed.

Cross post - sorry to labour the first point!

My DH was a high-ish earner so that's how we've managed to live solely off savings for 6 months and we don't anticipate being on benefits for very long.

Unfortunately ive heard this before and many people in your position don't tap into the help available to them and then get into much worse financial trouble - please do apply for the benefits your entitled to and remember that actually not applying can be frown on, the authorities wonder why you didn't apply and get ourself into further debt and strife. It will sound odd to people but you need help so accept it and hopefully you'll pull through somehow

ps I mean it in a kind way, its not a judgement or criticism

There's a really helpful group on Facebook called universal credit essentials - if you post on their trainer advisors will be able to advise

short term you may be better off both getting part time work opposite each other - so that you look after the children between you and work. Then whilst doing this you'll effectively see a rise in your income through U.C. but play around with entitled to calculator to see what works best for you. Put different scenarios in for both U.C. and council tax reduction

are you getting free school meals for your dc?

here is further information about DHP www.gov.uk/government/publications/claiming-discretionary-housing-payments/claiming-discretionary-housing-payments do make sure you put in a claim

If you do both find work, depending on the pay you might be entitled to the childcare element of UC which covers up to 85% of childcare costs.

How many children do you have? Do what @AnotherEmma suggested ASAP and apply for a discretionary housing payment you have good grounds but you should get professional help to do it as you get one shot and you can’t appeal it.

So sorry it was @ivykaty44 who suggested a dhp.

Tbh I'd be seeking a minimum wage job, even part time. Then there is no benifit cap and things should be more manageable

@BessieSurtees

So sorry it was *@ivykaty44* who suggested a dhp.

Discretionary housing payment. It can make up a shortfall in rent element. Apply through your local authority. They have extra money at the moment to help people like you.

apply for a discretionary housing payment you have good grounds but you should get professional help to do it as you get one shot and you can’t appeal it.

This is not the full story

You don’t need professional help with this

It’ll be a form to put your income and outgoings on it - put everything down

Then it’s correct you can’t appeal... but you can immediately put a another claim in if your not successful and people do

You don’t need professional help no, but as it’s discretionary it’s best to get the right info first time especially if you live in an area where decisions take weeks (or months?) they could be evicted waiting for a second decision.

The OP is someone who is totally unfamiliar with the benefits system to the point that by not claiming they have lost their grace period and £100’s a month. This is why I recommend asking for help.

Many people underestimate their outgoings or use a credit card so that it looks like they have some affordablity and payment is refused. Many people don’t put enough information on circumstances, on why they need help, what they have done so far etc etc.

And some decision makers need more evidence or persuading or are more harsh than others.

Amazing, thank you so much everyone for your advice. Honestly it's so helpful.

I'm writing a letter to my council for DHP now and I guess I include our income and expenses In that, as well as our rental contract maybe? Anything else I should include?

Also I didn't know if I took a min wage job the cap disappears?!!

They'll have an application form that you need to complete, if you can't find it on their website maybe contact them to ask.

Op this sounds very frightening I feel for you. One thing is that your ll cannot evict you overnight and needs a costly court order to do so. This is not in their financial interests and unless you have trashed the place they will want to avoid this.

A friend of mine negotiated paying rent weekly for a while. Whilst it won't magic money that doesn't exist it might stop the arrears escalating so much.