Redundancy, housing benefit and savings

papisito

Hi

I was recently made redundant and the amount I'm likely to receive seems to put me on the borderline as to whether I'm entitled to receive Housing Benefit so I'd like your advice.

Here's my financial summary:
* I'm likely, depending on tax, to get a final pay-off of £19k - £22k (gross is £30k)
* I am currently overdrawn by £2500
* I have other debts of around £17k
* I have no other savings

I have applied for JSA. My balance in my current account after the payment is likely to be £17.5k, which is a problem as I understand that anything over £16k means I won't get any Housing Benefit.

Can I make a payment of £1k-2k on my debts to bring me below the £16k threshold without negatively effecting my HB application?

I will anyway be below the £16k threshold pretty quickly anyway as my monthly expenses are in the £3k region.

Any help would be appreciated.

McKneff

i dont know the legaliteis involved but i dont think it would go down very well if you are seen to be deliberately lowering your savings to enable you to claim benefits.

poppyc

My personal opinion is that it would make sense to reduce the debt and lower your savings - i don't think it is unreasonable to do that.

p0ppy

McKneff

Yes it would lower the debt and the savings but it could be construed as 'deprivation of assets'
in which case they would be classes as still having the higher amount and still get nothing.

Grovester_2

Contribution based JSA does not involve a check of savings. It works on the amount of contributions made during the last 2 years.

juggling

hi, i am also in the same position as you so i contacted the local housing office, they stated that clearing debts would not be seen as a deprivation of assets, maybe best to give them a call tho just in case.

Emma1973

Very much double check on the deprivation of capital!
The general rules are:

If you deliberately get rid of capital in order to claim or increase your benefit, you are treated as still possessing it. Housing Benefit Reg 49(1)

If you pay off a debt which you are required by law to repay immediately, you may not be counted as having deprived yourself of money in order to gain benefit. R(SB) 12/91: Verna Jones v Secretary of State for Work and Pensions 2003 I'm guessing something like council tax arrears would be covered by this
But if you did pay off a debt which you were not required by law to repay immediately the decision maker still has to prove you did so in order to get benefits! CIS/2627/1995: Verna Jones v Secretary of State for Work and Pensions 2003

So I would double check with the Housing Office exactly what debts you are allowed to pay off, and get that in writing so there will be no come back on you, should they then decide it was deprivation of capital!

papisito

Many thanks all for your excellent comments