Loans, Payment protection & effect on benefits?

Tehya

Hello all,

I'm hoping someone can give me some advice.

I took out a loan when I was working but have now become a full time carer for my husband who is in receipt of ESA and DLA. I am now on Carer's Allowance too.

I know my Payment Protection Insurance will cover my loan re-payments for a total of 12 months as I'm in receipt of Carer's Allowance (already checked with Abbey) but what I'd like to know is as my hubby is on Income Related ESA will the loan being paid for by the bank be classed as income by the DWP, even though we won't see this money, because we won't be paying the loan ourselves?

Sorry if that's a bit garbled ,

Thanks,

Tehya

seven-day-weekend

I'm not absolutely £100% on this, but I think if the loan goes straight to the lender, and you see none of it and it does not pass through your hands, then it is not classed as income.

If it is given to you to pay the loan yourself, then it is.

Someone please correct me if I am wrong!

Oldernotwiser

That's certainly what I thought but, like you, I'm not 100%.

christine_chris_chrissy

I had major surgery surgery while on ssp claimed on ins of loan & credit card etc I had to send coppies of those dealings had no effect on my benefits all a bit of a blur though.

SuziQ

I was totally honest about this with IS, CTB and CTC, I have a barclayloan taken out 5 years ago (almost paid off now,thank goodness) which fortunately was covered by ppi. It was paid for a year whilst I was unemployed and has been paid the last 10 months since due to sickness. The payment goes directly to my loan account and I have it in writing that it does not affect any of my benefits. Hope that reasures you,but I would do the same as me and tell the benefits people so you can prove you were totally upfront.

Tehya

Aww thank you everyone, we really could do with saving this money at the moment especially as we're still waiting on CA and the adjustment to hubby's ESA being sorted out. It's been a difficult few weeks and it'll help us get back on our feet.

Thanks again for the reassurance. I'll let the benefits office know and that way it can't come back and haunt us in the future.

Tehya