Single parent benefit, can this be right?

felicity1

Hi, just want some advice please, my brother has separated from his wife. He has moved out into temporary accommodation, but the financial position has not changed in that he still pays all mortgage/utilities/council tax/food, etc.

He tells me today that his wife is now claiming a 'single mother's' benefit and can get free prescriptions (she needs new crowns doing), free school meals etc. I am trying to advise him because I am worried they may have been awarded this benefit by mistake - nothing has changed in that he still pays all bills, they were not eligible for any benefits before the split except ctc. He earns around £32,000. Any advice gratefully received, I don't want him getting into trouble with the Revenue, etc!

Tia,

stazi

'Single mothers benefit' = Income Support as a loan parent, more info here-
http://www.direct.gov.uk/en/MoneyTaxAndBenefits/BenefitsTaxCreditsAndOtherSupport/On_a_low_income/DG_10018708

Caz3121

She can claim as a single person as they are separated

she could be receiving: child benefit, child tax credits based on her sole income last year, income support (if youngest child is under 10), council tax benefit and possibly after 13 weeks some help with the mortgage interest - it would be expected that the money she receives would cover her own utilities and food, the UK has a very generous benefits system for single parents that do not work or work part time so she will not be going hungry.

You say your brother pays for a number of things still so I am assuming this is a fairly recent split, setting aside the mortgage for now, instead of paying for the other items he is liable to pay child maintenance for the child(ren) at 15% of net income for one child, 20% for two or 25% for more (less discounts if he has the child(ren) more than 52 nights a year)

The mortgage will be more complex and, if in joint names, both are equally liable and if she is not working he may be better continuing to pay this but is probably better replacing the other items with maintenance payment.

felicity1

My brother pays EVERY outgoing, nothing has changed in their financial situation, only their living arrangments. Yes, split is recent.

If I understand correctly, then that means anyone who declares a split in partnership/marriage can claim? So, for arguments sake, a married couple split up, the husband earns £80,000 but leaves the marital home. Are you saying that the wife would be able to claim benefits, even though her husband is well paid?

Indie_Kid

felicity1 wrote: »

Are you saying that the wife would be able to claim benefits, even though her husband is well paid?

yes, this is correct.

felicity1

Thanks. No wonder they split, they are financially thousands better off apart. I have actually underestimated his salary, it's nearer the £40,000 mark, but from what you are saying, a millionaire could leave the home and his wife could claim benefits. Crazy.

Caz3121

felicity1 wrote: »

Thanks. No wonder they split, they are financially thousands better off apart. I have actually underestimated his salary, it's nearer the £40,000 mark, but from what you are saying, a millionaire could leave the home and his wife could claim benefits. Crazy.

Unfortunately that is correct and the maintenance received has no effect on benefits - could be in a rented property getting full rent and council tax paid, all the tax credits, income support and a whack of maintenance on top. We then see loads of threads on here of single parents that have a huge financial drop when they live with a new partner or 'forget' to disclose they have a partner and end up committing benefit fraud

felicity1

But surely, if the partner that has left is still PAYING for everything as if he were there - then why would his wife/partner require benefits anyway? My brother pays for EVERYTHING down to the kids school meals, clothes, the lot. The system is surely open to abuse if the salary of the partner who has left is not taken into account? Oh, and his wife has part time job? This can't be right?

Indie_Kid

If the wife still has a part-time job, that will be taken into account.

felicity1

But husband's income and what he contributes isn't? Seems strange to me. So, what you are saying, is that if a millionaire leaves the family home tomorrow and continues to pay for everthing as if he were still resident there, his wife can still claim free prescriptions/free school meals/income support/council tax credit/mortgage help.

And we wonder why the country is in the mess it's in.

mitchaa

Felicity, has your brother actually split from his wife?

If he has, then how is he affording to run 2 homes on 1 salary?

Tax credits may ask for his new address details, his bank details, any finance taken out in the house post split, electoral roll, his post, i.e bank statements, his driving license etc etc.

If there is still a link to the address then they can certainly be prosecuted for benefit fraud. There will be couples all up and down the country pretending to be single to reap these extras financial benefits.

If they have truly split up and he is truly living elsewhere (which can be proven) then they have nothing to worry about. He should think about paying a set child maintenance figure and refusing to pay EVERYTHING else.