Still out of work after 5 months and worried about benefits

LauM

I have been out of work now for 5 months. I am a single parent of 3 children with a large mortgage.
I got a good redundancy payment which has taken me over the £16,000 threshold which means I get contributions based JSA. I get no other benefits.
The problem I have is I am unable to find work on the salary I was on, I am going to have to take a pay cut of at least half. This will not cover my mortgage payment, childcare and bills.
Next month my JSA stops, should I use all my redundancy to reduce my mortgage. If I do this and still have not found a job will I be able to claim, interest relief on my mortgage, income support and council tax benefit?
I dont know whether to carry on looking for a job and living off the redundancy money I have left until it runs out or reduce my mortgage which will make it easier to take a much lower paid job. Either way I dont want to get into debt, lose my home or not be able to provide for my children.
Any suggestions welcome

thanks

ed123_2

....I would go to your local CAB for advice before you do anything. The DWP have rules re deliberate reduction of capital in order to obtain benefits eg paying money to a third party, buying a roller etc etc. I do believe that using capital to pay off your mortgage does not count as deliberate reduction of capital and you would then be free to claim all the benefits going-council tax benefit, income based jsa, income support, child benefit, interest relief on mortgage etc etc ( I am 99% sure I am correct but do go to the CAB before you do anything and they will also tell you of other benefits I may have missed out).....ed

karenx

you may or may not get income support, depends on the age of your youngest child