Benefits and severance pay help

JANETRICK

Hi everyone, I'm a newbie on here, so hope I'm posting in the right place!

My Husband is due to finish work at the end of May, and will be receiving severance pay of £12500 approx. I don't work as our youngest child is disabled. I currently receive incapacity benefit, and of course our son gets higher rate DLA for mobility and care.
We currently get about £9 a week child tax credits too.

I'm trying to plan ahead- my Husband is considering starting up as self employed, but of course I'm panicking about money and benefits that we may or may not be entitled to.

Anyone any advice please...gratefully recieved!!

zzzLazyDaisy

If you go to turn2us.com and input the details of your new circumstances, it will give you a guide to what you might be entitled to.

You don't say if you are renting or have a mortgage and this may make a difference.

For a start, though, he will be entitled to contribution based JSA for six months as that is not means tested. Any working tax credit will stop, as neither of you are working, but your child tax credit may go up, and you may be entitled to help with rent/council tax.

JANETRICK

Thanks for that lazy daisy! We do have a mortgage (and debts unfortunately). The mortgage o/s is about £107k. I know we get a little extra on child tax credit because of our youngest being disabled, but not sure what that is.

Does the severance pay not affect benefits then?

zzzLazyDaisy

JANETRICK wrote: »

Thanks for that lazy daisy! We do have a mortgage (and debts unfortunately). The mortgage o/s is about £107k. I know we get a little extra on child tax credit because of our youngest being disabled, but not sure what that is.

Does the severance pay not affect benefits then?

It affects means tested benefits, but not contribution based benefits.

So it won't affect his CJSA, or your IB.

For means tested benefits capital does count, but if it is less than £16000 it is on a sliding scale. I am not sufficiently clued up to go into any more detail than that, but hopefully someone more savvy will be along soon.