moving back to UK and claiming benefits

longey

Hi

I've been living abroad for 12 years, during which time I haven't paid any UK NICs (I paid NICs for 10 years before I left). I have some savings, and I've been made redundant and will receive a lump sum. In total I probably have enough to buy a small flat and used car when I return back to the UK. I expect to be able to find work in the UK, but probably not immediately, and since I will most likely use all my savings on buying a flat, I will need to claim benefits as soon as I return. I am married with 2 young children (4 year old twins). I've used entitledto.co.uk to check what benefits I can claim, but I fear that my circumstances are a little unusual and child tax credit, jobseekers allowance/income support etc may not be fully applicable in my case.

My wife needs a visa to live in the UK and having been through a lot of difficulties in the past in getting a visit visa, we are planning that my mother will put her house in joint names (hers and mine) which will help solve the visa problem, and we would initially live there until we find our own place to buy. During this time, obviously we don't want to live off our savings and would like to claim benefits while we look for a house to buy, and I know our benefits will be reduced due to our savings, but what will happen after we use all our savings to buy a house ?

I'd be grateful for any advice.

Thanks in advance

viktory

Right, so you have paid nothing into the country for 12 years, will have a healthy pot of cash, which you intend using to sort yourself out somewhere to live and a car, but you will be living with you mother in the first instance to 'get around' ay visa problems and you want to claim benefits. Do you intend using any of your own money to live on?

You'll need to pass the Habitual Residence Test. In order to pass the HRT, claimants have to establish that they:

Are voluntarily in UK
Are resident in UK
Have a settled intention to remain in UK
Have been in UK for an appreciable period of time.

Any savings you have will impact on how much benefits you will be entitled to. Over £16k and you will get nothing. There is a rule about using savings for a house, but I am not sure of the details. You can't hide the money and the DWP will have access to your bank accounts.

Perhaps you need to rethink your plans.

Jowo_2

Like viktory, I'm aware that there are lots of regulations to ensure that benefit claimants do not rid themselves of capital (assets and savings, etc) in order to take advantage of the benefit system, and that if the social security departments regard a claimant breaching the regulations, they will regard the claimant as still possessing them.

If you google 'deprivation of capital' and 'notional capital' you may get a general understanding, and perhaps come across advice for how a house purchase is treated, but hopefully another poster will be able to advise you how they may or may not apply in your particular circumstances.

kingfisherblue

Can't you rent when you get here, and use some of your savings for day to day living? Then, when you find a job, get a mortgage? That way you wouldn't need to claim benefits.

longey

viktory wrote: »

Right, so you have paid nothing into the country for 12 years, will have a healthy pot of cash, which you intend using to sort yourself out somewhere to live and a car, but you will be living with you mother in the first instance to 'get around' ay visa problems]

The visa regulations are that I must provide accommodation for my wife in the UK at the time I make the application. Obviously I will not be in the UK at the time of the application so I don't see what option I have.

and you want to claim benefits.

Yes, but only if I'm entitled to it.

Do you intend using any of your own money to live on?

I said " I know our benefits will be reduced due to our savings", so YES.

You'll need to pass the Habitual Residence Test. In order to pass the HRT, claimants have to establish that they:

Are voluntarily in UK
Are resident in UK
Have a settled intention to remain in UK
Have been in UK for an appreciable period of time.

What does "an appreciable period of time" mean ?

Any savings you have will impact on how much benefits you will be entitled to. Over £16k and you will get nothing. There is a rule about using savings for a house, but I am not sure of the details. You can't hide the money and the DWP will have access to your bank accounts.

I haven't suggested hiding anything.

Perhaps you need to rethink your plans.

Yes.Thanks for your help.

Jowo_2

Perhaps the Visa authorities will accept a lodgers agreement for your spouse from your mother rather than going to all the effort and expense of transfering her property into your name? Or book short-term accommodation at a property somewhere else?

longey

kingfisherblue wrote: »

Can't you rent when you get here, and use some of your savings for day to day living? Then, when you find a job, get a mortgage? That way you wouldn't need to claim benefits.

Yes I could do that, if I'm not entitled to any benefits, and even if I am entitled I expect it wouldn't be enough to cover our expenses. I don't intend to claim for something I'm not entitled to. I don't want to deplete the modest savings I've accumulated over the last 20+ years if I can avoid it legally, or rather, I'd like to minimise the depletion as far as possible within the rules. I'm optimistic about finding a job, but its also possible that I can't find one, or can't find one quickly, so I have to consider that too.

It's not as if I'm just coming to the country from overseas, never having contributed anything to the system. For 10 years I did contribute and never claimed any benefits. If I'm entitled to something I don't see why I should choose to eat further into my savings than need be. On the other hand, if I'm not entitled, and if buying a property to live in would result in not being entitled, then OK, I can accept that. This is the reason I am posting here - to try to get more information.

Thanks

longey

Jowo wrote: »

Perhaps the Visa authorities will accept a lodgers agreement for your spouse from your mother rather than going to all the effort and expense of transfering her property into your name?

Yes, they will accept that, and in that case they also need my mother to be a sponsor of my wife's visa which means my mother (who is quite elderly and infirm) having to fill in a stack of paperwork, provide 6 months of bank statement and a lot of other things. Putting her house in our joint names was just an idea to avoid her having to go through that.

Or book short-term accommodation at a property somewhere else?

Visa regs don't allow short term rentals for that purpose. It has to be long term.

Thanks.

longey

Some people here seem offended by what I'm trying to do. I'm not saying my situation is the same, but it's not that much different from a person who buys a house with a mortgage, pays of the mortgage over time with their salary and then finds themselves unemployed with no income and little savings. Can that person claim benefits ? What if that person sells their house and then uses the funds to buy another one ?

Voyager2002

Jowo wrote: »

Perhaps the Visa authorities will accept a lodgers agreement for your spouse from your mother rather than going to all the effort and expense of transfering her property into your name? Or book short-term accommodation at a property somewhere else?

Yes: what they require is a firm offer of accommodation. A letter from your mother stating that you are all welcome to live with her would do the trick, BUT you would also need to submit evidence that the property is large enough to house all the people involved.

Jowo_2

Here's a thread where someone has consulted the rule book on the disregard period when selling a property for the purposes of means tested benefits

http://forums.moneysavingexpert.com/showthread.html?t=2272957