Advise regarding where we stand with benefits

singingsister

Please don't flame me over my post, Im in a bad place right now and am after some advise on our situation.

I'll try and summarise our position...
Sept 09 I was made redundant whilst pregnant, hubby still working.
Jan 10 baby was born and we found out we would b eligible for housing and council tax benefit which we received.
Mid Oct 10 hubby started a new job meaning wage increase.
I rang (there was my mistake!) the council to ask them what to do and they said for me to send his first full months payslip in (he started new job mid month) and they would work out our eligibility from there. His Payslip arrived last day in November.
1st dec I posted the Payslip to them with a short letter. A couple of weeks later I received a letter asking me to send Dec Payslip in as well (something to do with him being on emergency tax).

All the time this was going on, we were still being paid benefits even tho I knew and told them his salary would mean we were no longer eligible.

Then early Feb I recieve a series of invoices from the council totalling just short of £700 to be paid within 2 weeks!!!

I sent a complaint email to the council (which took them over 2 weeks to respond to!) asking why we suddenly owed so much money and that we werent in a financial position to pay this back. Over two weeks later a reply came back basically accusing me of committing fraud by telling them late of a change of circumstances but that as a gesture of goodwill they'd reduce the amount we owe by £20!

The day after this letter arrived in the post, were these invoices again buy this time red invoices to be paid within 7 days"or else".

I have been in contact with a local advise service who haven't been much help to be honest.

Now I'm not denying we Owe the money but the minimum the council will accept is £40 a month which we can't afford, especially as we're financially worse off since coming off benefits.

The situation has now changed as hubby has found out that he might b getting made redundant at the end of the month (just what we need...not) so I "presume" our eligability for benefits will change.

If my hubby does get made redundant and we do become eligable for benefits,does anyone know what the council will do about reclaiming the overpaid amount?

We're in a bit of debt (our own stupidity granted) and all the advice people said was that the council is a priority debt and that if necessary we should default on other debts to pay the council!

At the moment, with a struggle we're able to meet all our monthly repayments and I'm certainly not prepared to start missing payments.

As I asked, please don't flame me for being in debt or anything, my heads in a bad enough place as it is and I came on here for support and suggestions that might help.

Thanks.

Sarah

AnxiousMum

While you were receiving benefits, that you say you told them you would not be eligible for due to hubby's wages, did you not put the money aside? Obviously if you knew you would not be eligible for it, then you would also realise that you would have to pay it back?

You also say that you are in debt......and that you do not wish to start missing payments - I assume that you are talking about your debt payments, and not your council payments?

Have you called your debtors to try and negotiate more manageable payments?

If you do not pay the housing overpayment, I assume that they would make deductions off of your payments if you have to reapply.

Does the overpayment take into account any run on of benefits once your husband started work?

singingsister

Hi,

When I say I knew we were no longer eligible, I mean it's from googling it! So who knows.

Yes you are right, mayb we should have put the money aside but to be honest (and it sounds stupid) I didn't think about it. NOT an excuse I know. Also living so close every month to "will we have enough to pay the rent this month" the money got eaten in bills and nappies.

Off the top of my head (I don't have the paperwork to hand) they've taken the overpayment to the date they kept paying us till whilst they were faffing with paperwork. The advice service I saw wondered why the council didn't suspend payment while our eligability was being recalculated and I wish they had as I wouldn't b in this situation.

We are in debt but manage to meet all our monthly repayments (sometimes parents have had to lend us a bit to help make ends meet-but they can't keep doing it).

I haven't contacted any creditors to reduce payments, I'm not sure I can mentally cope with it (I've suffered with depression in the past due to money issues and have started to feel like I used to when I was depressed which isn't good).

I think I'm going to ring CCCS tomorrow, see if they can help me sort my pickle out!

MrsManda

Have you looked through the figures to ensure the amount you owe is correct? - always a good first step to make sure you do owe what they say you do.

It may be worth doing a Statement of Affairs on the Debtfreewannabe board and seeing if you can reduce your outgoings. This will help you with your current debt situation and also may help you negotiate a lower repayment with the council as they'll be able to see where your money is going.

Have your spoke to the other companies you owe money to to see if you can negotiate lower payments/interest rates with them?

I believe that any benefits you may be entitled to if your husband is made redundant will be reduced in order to claim back the overpayments. You may be entitled to hardship payments if it can be shown you are in hardship but I'm not sure how this is assessed.

Can you not work?

singingsister

I have been looking at working but the cost of childcare is extortionate where we live. We're looking at £15,000 a year for childcare alone if I go back to work full time so i'd have to earn a decent wage to make it worthwhile. Then there's travel costs etc.

Believe me I'd love to get back to work,I've been out of work since Sept 09....a LONG TIME.

I have looked at jobs in my local area.for example one job I would have been ideal for was paying £15,000 so we'd be no better off if I took it! In fact worse off after petrol, time etc.

I did recently get to the second interview for a job but didn't get it. If I would have been successful, We'd have (after tax/petrol/childcare etc) mayb £1000 a year and that's being optimistic!

So I'm damned if I do and damned if I don't!

nannytone_2

you could always look for work 'around' your OH's hours.
there tends to be more evening/weekend jobs available as lots of people want to be home at these times.

singingsister

I can't because the nature of my husbands work is that he has to work some evenings and weekends sometimes at short notice.

(he's a building manager for a charity. So for example if they r having building works done out of hours he has to b there or if a meeting is running late he has to stay in the building.)

karenx

Do you not have any family who can help out?

singingsister

Nope.my dad is disabled and my mum is his carer. Hubby's family are in Scotland.

nannytone_2

Avon/bodyshop rep?

singingsister

Hmmm. Worth considering but Id need to find out the start up costs and what u actually earn as well.