Help with benefit entitlement and lump sum please.

happymumto2

Before I get shot down in flames (as I was on a previous thread), am not looking for a way to defraud the system, am looking for genuine advice so I do not fall foul of the benefit system.
I have been off sick from work since early in the year, been on half pay since August, and have received ESA since October. In February my occupational pay stops and because of my bipolar diagnosis, I will not be allowed to return because of the nature and responsibility involved so will be finished on ill health. I will receive 5 months full pay at this time which amounts to £11k (after tax etc). I know that having savings has an impact on benefits.
However I have been unable to pay my mortgage in full since August (I pay £400 as a token gesture rather than the £1100, I should be paying, so by February will have around £4900 arrears. Also at present I have a company car, which will be taken off me in February.
Out of my 11k would I be allowed to pay off my 5k arrears and purchase a cheap car for say 1k, or would this be considered as deprivation of capital? Which would then affect my benefits?
Before I am slated I don't want to do anything wrong, am asking for guidance, if I have to live of that money and not claim anything I am happy to do it as I appreciate it is quite a lot of money. What I don't want to do is pay off what I think is essential e.g. mortgage and get a cheap car if it means I will be considered to have deprived myself of the capital and therefore won't be entitled to anything for doing so, as I will need to keep the money from the start to live off.

DaisyFlower

If its just that job you cant return too because of the responsibility, then could you not use the time until then to find something else?

That way you would have some savings plus a weekly/monthly income too and your capital would be yours to do with as you wish (presuming you dont need to claim any extra means tested benefits).

Oldernotwiser

On what basis is the 5 months' salary being paid to you?

Voyager2002

I suggest you contact the office dealing with your benefit claim and ask them (telephone, and ask to speak to an adjudication officer).

I am reasonably confident that you would not get into trouble for buying a car (search this site for previous discussion, someone posted the maximum amount they consider reasonable) but have no idea how they would treat mortgage arrears.

healy

happymumto2 wrote: »

Before I get shot down in flames (as I was on a previous thread), am not looking for a way to defraud the system, am looking for genuine advice so I do not fall foul of the benefit system.
I have been off sick from work since early in the year, been on half pay since August, and have received ESA since October. In February my occupational pay stops and because of my bipolar diagnosis, I will not be allowed to return because of the nature and responsibility involved so will be finished on ill health. I will receive 5 months full pay at this time which amounts to £11k (after tax etc). I know that having savings has an impact on benefits.
However I have been unable to pay my mortgage in full since August (I pay £400 as a token gesture rather than the £1100, I should be paying, so by February will have around £4900 arrears. Also at present I have a company car, which will be taken off me in February.
Out of my 11k would I be allowed to pay off my 5k arrears and purchase a cheap car for say 1k, or would this be considered as deprivation of capital? Which would then affect my benefits?
Before I am slated I don't want to do anything wrong, am asking for guidance, if I have to live of that money and not claim anything I am happy to do it as I appreciate it is quite a lot of money. What I don't want to do is pay off what I think is essential e.g. mortgage and get a cheap car if it means I will be considered to have deprived myself of the capital and therefore won't be entitled to anything for doing so, as I will need to keep the money from the start to live off.

If you are just claiming contribution based ESA it does not matter what you do with the money.

If you were to claim means tested benefits what you have said sounds reasonable but you should check with the DWP to be sure.

happymumto2

DaisyFlower wrote: »

If its just that job you cant return too because of the responsibility, then could you not use the time until then to find something else?

That way you would have some savings plus a weekly/monthly income too and your capital would be yours to do with as you wish (presuming you dont need to claim any extra means tested benefits).

At the moment am not fit for any sort of employment, am trying different meds monthly but they cannot get it under control, am rapid cycling so can spend 3 weeks in bed under the covers and 1 week doing bizarre things at all hours of the day and night. Am a midwifery sister in a surgery, and appreciate the instability of my illness makes a return impossible.
My long term goal is to set up some sort of business from home as I do not wish to rely on benefits, have worked since I am 13 so all this benefit business apart from CTC is new to me. Working from home would mean that during bad/low phases I could take the necessary time off without being sacked for not turning up.

happymumto2

Oldernotwiser wrote: »

On what basis is the 5 months' salary being paid to you?

Now you're asking am not sure, I know 2 months of it are my holiday entitlement since April 09, and the other 3 months are my notice of them terminating my contract because of ill health, is that what you mean?

happymumto2

Voyager2002 wrote: »

I suggest you contact the office dealing with your benefit claim and ask them (telephone, and ask to speak to an adjudication officer).

I am reasonably confident that you would not get into trouble for buying a car (search this site for previous discussion, someone posted the maximum amount they consider reasonable) but have no idea how they would treat mortgage arrears.

Thank you for taking the time to answer, I was thinking personally (but then I do not have rational thought a minute!), that I was going to pay the arrears, because as from February they will pay the interest on my half of the mortgage and it looked like I was making an effort to pay something. However if that is wrong and they want me to live off that money I will do that, but the 1100 a month payments plus living costs mean it would not last long. But if that is the right thing to do will do that, will ring them to check.

happymumto2

healy wrote: »

If you are just claiming contribution based ESA it does not matter what you do with the money.

If you were to claim means tested benefits what you have said sounds reasonable but you should check with the DWP to be sure.

Until February am on contribution based ESA, after that they said I need to claim income based (not sure what the difference is!).
Will get the lump sum March probably so by that time I will I presume be on income based.

Oldernotwiser

happymumto2 wrote: »

Now you're asking am not sure, I know 2 months of it are my holiday entitlement since April 09, and the other 3 months are my notice of them terminating my contract because of ill health, is that what you mean?

Yes, that's the sort of thing I meant.

I wonder, and I really don't know the answer to this, whether that counts as income for the next 3 months, paid in advance?

krisskross

Who pays the rest of your mortgage as you mention paying half?

are you taking early retiremernt on health grounds from the NHS or just leaving?