Benefits Question

rdcox

Hi,

I have just found out that I have been officially put at risk of redundancy in my current job but think its pretty much a foregone conclusion that I will be made redundant. I am in the 30 day consultation period and following that will be a 60 day notice period. I am likely to get a redundancy payment of around 12k.

My financial situation is as follows:

200k mortgage
15k savings
No other debts

Does the 16k savings limit on benefits include redundancy?

I am a single parent of 2 children of 11 and 8. One child about to start secondary school in September, the other at a fee paying private school with three years to go.

I have looked around for other jobs but there is nothing around my area utilising my particular IT skills, I would have to travel 2 hours+ each way to get into London which is not feasible with the children as I don't have that much local support.

I am at present receiving child benefit and family tax credits totalling about £160 per month. My ex-wife hasn't contributed a penny in maintenance for the children in over 18 months although has been working on a self employed basis but is hiding everything through her present boyfriends ltd company and the CSA are too inept/powerless to do anything. I also have the option of applying for spousal maintenance as this was awarded to me during our divorce as I have main residency of our children but she will again hide from this.

I do also suffer from hypothyroidism which has a fairly big impact on energy, memory and concentration which does affect me at work and during studying in particular though probably isn't bad enough to prevent me from working.

I am in a position where the IT system I specialise in is being generally wound down so need to look at cross training. I am part way through an Open University degree which I would like to finish in the next couple of years and see this time now as possibly the only way I could actually achieve this as it has been impossible with working full time and looking after my children to do anything else.

My question is in terms of benefits etc is what would I be entitled to, I understand my mortgage would now be paid after 3 months upto 200k for 2 years, I think council tax would be paid, family/child tax credits increased, JSA? I am also wondering if I would be better off trying to get a local part time job upto 16 hours per week or would I be better off solely trying to study and get my skills upto date? Which option would leave me financially better off?

I have never been out of work before so don't really know where to start so any advice gratefully received.

Cheers
Richard

PolishBigSpender

In short - because you'll have over 16k in savings, you won't be entitled to any benefits. You might (I'm not sure!) be entitled to Child Tax Credits, but nothing else.

Between 6k and 16k, you'll be entitled to something - but not the full amount.

Certainly there won't be any benefits available to continue your child's private education - and indeed, using your savings to pay for her education may be seen as deliberate reduction of capital and thus benefits can be lost this way.

Loopy_Girl

rdcox wrote: »

Hi,

My question is in terms of benefits etc is what would I be entitled to, I understand my mortgage would now be paid after 3 months upto 200k for 2 years, I think council tax would be paid, family/child tax credits increased, JSA? I am also wondering if I would be better off trying to get a local part time job upto 16 hours per week or would I be better off solely trying to study and get my skills upto date? Which option would leave me financially better off?

As PBS says, you will not be entitled to anything that you have quoted due to your savings. The benefits you mention are to help people who have nothing - with all due respect, you are going to have £27k in the bank so you are hardly on the breadline.

You would be better off trying to get a 16 hour job and then you can claim WTC/CTC. They don't count the capital you have as income, only the interest payable on it.

You will not be entitled to any help with your housing costs because of your savings. Your savings would need to be less than £6k to be eligible for help with housing costs and Income Support (which as a lone parent with your youngest under 12 you would claim, not JSA).

koolcat

Hi rdcox.

If you have been working and paying NI for the last 2 years, which by sounds of it you have, then you will be entitled to Contribution Based JSA. This is not means tested so does not take saving and any other circumstances into account. Whilst on this JSA you will get £64.30 per week. Any income you receive whilst on this JSA will be deducted from your £64.30 per week.

Hope this helps.

healy

PolishBigSpender wrote: »

In short - because you'll have over 16k in savings, you won't be entitled to any benefits. You might (I'm not sure!) be entitled to Child Tax Credits, but nothing else.

Between 6k and 16k, you'll be entitled to something - but not the full amount.

Certainly there won't be any benefits available to continue your child's private education - and indeed, using your savings to pay for her education may be seen as deliberate reduction of capital and thus benefits can be lost this way.

This is not correct.

The OP would be entitled to claim contribution based JSA for up to 6 months if they have been paying NI in recent years. It does not matter how much they have in savings. They will however need to to available for and actively seeking work.

Sorry koolcat, I missed your post but it is worth saying again as PBS gives alot of bad advice.

alwaysonthego_2

let your mortgage provider know that you are going to be out of work and you could maybe take a payment holiday or go to a interest only mortgage. Make sure you pay your priority debts like mortgage over any unpriority debts like credit cards. Good luck and you sound like you are doing a stirling job bringing up your children.

Loopy_Girl

healy wrote: »

This is not correct.

The OP would be entitled to claim contribution based JSA for up to 6 months if they have been paying NI in recent years. It does not matter how much they have in savings. They will however need to to available for and actively seeking work.

Sorry koolcat, I missed your post but it is worth saying again as PBS gives alot of bad advice.

Then I am also wrong. I completely forgot he would be entitled to that. I guess I was focussing on his potential eligibilty to IS as he was a lone parent.

[Deleted User]

Loopy_Girl wrote: »

Then I am also wrong. I completely forgot he would be entitled to that. I guess I was focussing on his potential eligibilty to IS as he was a lone parent.

Although the children are now 11 and 8,from next year that wont be a reason to claim I/S,the rules have changed and are changing,now a child of 12 isnt reason from next year it will be from 7,one can only assume that eventually a babe in arms wont be a reason either

Loopy_Girl

No I know that...I was just thinking that as the youngest is under 12 it gives the pressure of 'signing on' a miss as, had he not had substantial savings, then he could have applied for IS as a lone parent whilst looking for work in the here and now.

As admitted though it's all relative since I made a faux pax with regards to the JSA/IS thing:o my heart, as always, in the right place though:D

And you are probably spot on...eventually parents will probably end up being forced back to work after the 6 week ante-natal check!;) But that's a whole different thread for DT (where I rarely venture...if we thought they were bad on this board.....!!!):rotfl::rotfl::rotfl:

jubro

Your redundancy payment is added into your savings but using it to pay a lump sum off your mortgage (and if you want taking a mortgage payment holiday) is seen as a prefectly reasonable thing to do. (However make sure this isn't going to cost you money with your mortgage lender.)
If you receive any payment in lieu of notice or anything similar that effectively continues your employment for that period.
How desperate are you to keep your youngest child in private school? Would the school allow you to pay all the fees for the rest of your childs time at school upfront - say now. I know this is before you know the result of the redundancy but the benefits people can't question you about what you do with your own money before you are made redundant.
What plans if any did you have for your savings? Are they to buy a car or have a holiday or is it just an emergency fund. If for anything other than an emergency fund is this still a purchase you want to make and do you want to do it now.
As previously stated you would be entitled to JSA based on your national insurance contributions.
Virtually every other benefit you can think of depends on a combination of your savings and your income.
Have you considered becoming a full time student to finish your degree? You may be eligible for financial assistance and depending on the course should atleast get your fees paid. Could you support your household out of saving for the time it would take to complete your degree - probably only 1 year full time. As a full time student you might be entitled to various benefits but again these all depend on your savings.

Remember the DWP can't have any say about what you do with your savings before your know if you are to be made redundant or not!

Do what you can to get the CSA on your ex's case. All parents should take responsibility for their children and if she has the money she should be contributing!

karen098

[QUOTE=jubro;
Remember the DWP can't have any say about what you do with your savings before your know if you are to be made redundant or not!
[/QUOTE]

If for any reason the DWP believes or are told that you had capital which you spent when you knew you were going to made reduntant they can investigate and IF they prove it, it will affect your benefits. I say IF they prove it as it can be difficult but they can write to your employers to find out. But this will only matter on income base JSA, they may never have any reason to question it but its worth remembering that they could