Total income below 'Applicable Amount'

MaisyMay_2

Hi

We've just had a visit from a housing office to renew our housing benefits claim. They've advised us that our income is £107 per week below the minimum amount the government say we need to live on. She didn't know who would make up that shortfall but suggested we call Tax Credits helpline and DWP. I've called both and they both say we are getting all we should.

We have 5 children and are self-employed but not making any profit yet. We receive working and child tax credits and child benefit. We also get housing benefit and council tax credits.

The DWP said they assume that we get minimum wage and that is what accounts for the shortfall. Obviously as we're not yet making a profit, we don't get minimum wage from self-employment.

Is there anything we should know or another department we need to phone - or do we just need to keep trying to manage on what we have until we can make a profit?

TIA.

Maisy
xxxxx

CIS

The minimum amount the government says you need to live on is abit of a fallacy, it can change from benefit to benefit and circumstance to circumstance.

What is your total income ?, (if its a overall net loss, your income is taken as 0)

With regards to atx credits - are you currently getting any ?, if your on an income less than £5220, then you shoudl get full tax credits for your circs, over £5220 and the tax credits reduce by 37% of the excess income.

With 5 children (Assuming childcare or disabilities),you shoudl get around a maximum of approx £250 per week , reducing by 37% any income in excess of £5220.

MaisyMay_2

Thanks for your reply CIS.

Our income is a net loss - so taken as 0 as you say.

We get tax credits of £897.00 every 4 weeks - so £224 per week. I've contacted them and they say we're getting the correct amount but they are deducted £70 per month for a previous overpayment.

In addition we get £62.6 per week child benefit.

This brings our total income per week to £286.60.

Money is pretty tight and I hadn't really thought anything of it until the housing officer raised the issue of this "Applicable Amount" and suggested maybe there was other money we were entitled too.

CIS

Your tax credits sound about right, its the overpayment that's lowering it - you could try appealing on hardship grounds against the rate of recovery, but, its unlikely they would lower it further.

MaisyMay_2

I've called them to ask about that and they said they would get another department to phone me. Worth a try I suppose. Thanks for all your advice today.