Eligibility for help with housing under UC?

[lk56]

Hi, name changed for this...

Posting for my sister will pass replies on to her.

Basically,

My sister is due her first baby next year, she will have just finished her nursing degree in time for babies arrival. She obviously wants to take a few months off with baby but isn't sure if she would qualify for much. She said she has filled in the online calculators but is getting different results and is confused.

Key details:
Her partner lives with her and earns just under £25k, he basically pays all the bills.

She bought a house earlier this year, she technically owns the house outright, our mother loaned her the money to buy the house and my sister pays her the loan amount back around £450 pound a month. But the house is in my sisters name.

This will be their first baby.

Basically, will she be eligible to claim any money towards paying this loan agreement back to mum? Like she would if mum was her landlord? Does it class as housing costs? I'm really not sure so I said I'd ask on here for her! The agreement is quite informal but there is something written up between them, but I don't know how legal it is or whether it's more a trust agreement.

Also, she said her UC claims come back basically 0-£16 a week (when covid support is over) with child benefit on top.
Is this right to be this little? If her partner is on 24900 per year? No one is claiming any disability etc so a straightforward claim. She will be classed as unemployed. She's worked for years but will have to quit when baby is here. She has never met the tax threshold as only earns about 6k a year. So don't think she's eligible for esa etc...

Please shed some light for us!

I would be astonished if repaying your mum in instalments, because she lent you the full cash price of a house, is something you can claim as a housing cost from DWP.

I gather that UC payments towards official mortgages are highly restricted on UC. Also, if this was allowed, loads of people could get UC to buy them a house, provided they had a parent with capital to stump up the upfront cash. It isn’t really what benefits are for, is it?

She should probably find a welfare advice service to get expert opinion, though.

Did she not see this problem coming when she bought the house and got pregnant?

No, they won't help with housing. If the house was in her mum's name, there may be a process for her to claim something as a tenant but it would need to be officially a tenancy.

Is she doing Bank shifts to save? I think that's allowed before co.pleting the qualifications isn't it?

UC don't pay back peoples loans, regardless of w hat they are for. They will get a little bit of child benefit and a reduction of council tax but otherwise they are just going to have to manage on £25k. It's tight, but doable.

Thanks for your reply- she wasn't sure that's why she was asking. No harm in that is there? I didn't say she DESERVED to be eligible for it 🙈

Nope unfortunately didn't see this problem coming! She had cancer in her younger years, doctors classed her as infertile because of treatment and they were planning on saving for ivf when she hopefully got her first nurses post. So a miracle really, but a bit untimely I suppose!

Again, thank you for your reply, I didn't think she'd be eligible but at least I asked the question. But maybe try and be a little less judgemental in future... just a thought 😊

I doubt you could claim a private loan as housing expenses. And agree that housing allowances for mortgage repayments seem to be far less generous than allowances towards rent. How can her Mum be her landlord when your sister owns the house. I think her only option would be to ask your Mum to defer the loan repayments till she gets a job if they can't manage or at least to work out what they can afford and pay that. It's the most sensible option I'd say.

@GroundAlmonds ^^

Thanks for everyone's replies. I didn't think she'd be eligible. I was just helping her weigh her options up. 😊 hopefully they can make it work on the 24k, she may just have to go back to work/find a new job a little earlier.

Your mum isn’t her landlord. Your sister owns the house.

She owns her house outright but wants help to pay for housing ? No she won’t get any help . The father of her child will have to pay for everything until she gets a job .

How much is she working? You say she’s doing a degree?

Also, I did mention my mum isn't her landlord, I asked would she get some similar help as she would if mum was her landlord, she's a homeowner and much more fortunate than some others for sure- I understand that 😊

I doubt that any doctor told her she was infertile . They may have said it would be difficult to get pregnant.
Yes she’ll have to go to work earlier than perhaps she has planned .

No there will be no help with housing because she doesn't rent and there is no specific help on Uc with a mortgage.
However once she has the baby and as she will not be claiming a rent element on UC, they will be eligible for the higher work allowance of Uc meaning that the first £512 of joint earnings/ smp will be completely disregarded before wages start to reduce their Uc award. This work allowance is how people with mortgages claiming Uc benefit more than someone without kids.
However whether they would get any Uc even with this work allowance applied depends on her partners net monthly income and anything that she will receive( maybe nothing if just qualified and hasn't been working ). If you can provide his net earnings and their ages then I can calculate.

@Kcar she's working 8 hours a week on top of studying (currently receiving student loans that will stop when she graduates). They are both trying to get some savings behind them.

You’re the only person who has used the word “deserved” OP. Pointing out that benefits aren’t there to repay people’s Mums isn’t exactly judgemental either, is it? You might have noticed we have a Conservative government and that UC has been described as a harsh and miserly system. Harsh and miserly systems do not buy houses for people.

It’s probably for the best of your sister posts her budget herself, here or on MSE to get help tightening her belt.

She owns a house outright as far as UC are concerned.

It’s a bit weird to think she would get help to pay back her mum.

To clarify - just because they wouldn't get housing element on UC, does not automatically mean there would be NO Uc entitlement.

@MaudHatter numerous doctors told her she would need ivf to get pregnant... sorry if infertile is the wrong word for not being able to conceive naturally..

If her housing costs are 450 a month than living short term on 25k should be doable.

This thread has got a bit ugly and snarky.
She wouldn't qualify for the housing element of UC but she might qualify for UC's.

If one of them is over 25 and with one baby on the claim, there Uc would start off at being £829.87 per month. Say the husband earns £1600 net a month, then the first £512 of those earnings are disregarded and then each pound above that reduces the Uc by 63p, so if his net earnings were £1600, then the deduction would be £688.98, meaning a Uc payment of £140 a month plus £20.70 a week child benefit. the Uc calculation assumes they dont have joint savings over 6k. There would be no entitlement to Uc with savings over 16k.

@Babyroobs his take home pay is 1600 after all deductions she said.

I'm not sure they would be eligible for anything- I have no experience with the system, just trying to find out a bit more for her.

Thanks for the information @Babyroobs I will pass this on to her now 😊

Could she get maternity allowance if she has been working?
The fact she's having a baby after thinking she couldn't is wonderful 😊
Can your mum do without the money for a year?

@EatTheHamTina glad I'm not the only one who thinks so!🙈

At least she's basically got her answer!