Finally got job - Job grant & Housing Benefit Run-On advice appreciated

Evil_Olive

I have been searching for a job for over a year and have finally received a conditional job offer (I will get the formal offer when references etc have been checked out). The job is full time and permanent. It's low paid but I am hoping it's enough that I can come off all benefits completely (although as I live in Essex (very high rent area all over) a small amount of housing benefit might still be necessary.)

I don't anticipate any problems with references and when I receive the formal offer I, of course, intend to grab it with both hands

My worry is that the job is due to start at the beginning of Feb and my first payday will be 29th Feb. This will be after my rent is supposed to be paid on the 24th. I rent through a lettings company who charge £30 per day if the rent is late. I have contacted them and they say no exceptions under any circumstances. My rent is £600 and I have no family or friends who have that kind of money spare to lend me even for a few days.

The JC mentioned 'Housing Benefit Run-On' which is meant to cover this kind of eventuality but the JC was very vague about it and I wondered if anyone here could tell me how it works in more detail.

Specifically,

1) do you have to apply for it, and how - the JC said it's automatic but how do they know that I need it? I've learned not to trust what the JC tells me 100% unless it's in writing...

2) How must I pay it back - I'm hoping in instalments as if they want it back in one lump on my first pay day it will just leave me in the same position again when next months rent is due...
I was told it runs on for a month but my housing benefit is paid two-weekly so I need to be sure as one two-weekly payment will cover less than 1/2 of the rent.

3) Are there any particular eligibility restrictions I should be aware of?

The JC also mentioned 'Job Grant' (£100 when you start a new job after being unemployed for a year or more) - this would help towards the problem of how I was going to eat/put money on my leccy/gas card, pay travel to work costs etc for the first month - same three questions as above really.

If I'm not eligible for either, or the way I have to pay it back means it's not worth doing I will have to find some other way of getting round this so I'm trying to find out as much as I can before I start work as my hours will mean I can't get to the JC when it's open and gives me more time to try and sort something else out (however unlikely LOL!).

Finally, is there anything else I should be looking at to help me over this first month as my last part-payment of JSA plus £100 Job grant (if i get it) will definitely not cover all fuel/food/travel even for a short month like February... (travel to work alone will come to approx £150)

My initial elation is slowly turning into abject terror as I contemplate the possibility of trying to get through the next month on zero money with an extra £150 to pay out in travel :eek:

Any info gratefully received...

uganda

The Jobcentre knows that you have been unemployed for 26 weeks or more, that you are starting a job of at least 16 hours and that it is expected to last at least 5 weeks, so you are entitled to a Job Grant of £100 and a HB extended payment of 4 weeks.


Theoretically, everything is done automatically, but I would be sure to inform the local authority immediately (it sounds like you will be doing an in-work HB claim anyway) just in case.


If as most jobs, yours starts on a Monday, you will effectively get 5 weeks' extra, as HB is paid up to the Monday after a change and then you get your extended payment for another 4 weeks. So for example, if you start work on 6 February 2011, your JSA will only be paid up to 5 February 2011 but your HB and CTB will be paid up to 12 March 2011 as if you were still on JSA. Any in-work claim would then start on 12 March 2011.

Neither that, nor the £100 job grant, will want paying back.


You might persuade your new employer to advance you part of your wage, but I can see how that might be tricky, but please don't go to any of these wage advance firms. They're sharks. You should qualify for a DWP budgeting loan - here's the link: http://www.dwp.gov.uk/publications/specialist-guides/technical-guidance/sb16-a-guide-to-the-social/budgeting-loans/ (these obviously do need paying back!)


Best of luck!

BigAunty

The £30 a day penalty for late payment of rent is illegal, in my opinion, although rent arrears are a serious business with serious consequences for tenants.

My understanding is that a landlord may charge a tiny amount of interest on late rent if it's in the contract and it really is a nominal sum. That sounds an illegal, outrageous and unenforceable practice.

Contact Shelter or ask on the Housing forum about your rights. Perhaps contact your local trading standards for advice. A tenancy agreement may say anything it likes but it doesn't mean that it's enforceable according to housing law.

See if there are any credit unions in your local area and whether their membership requires you to have a history of saving before they will grant you a loan (if you are worried about not having sufficient income for rent) or talk to your bank about an overdraft.

HappyMJ

Agreed with BigAunty the £30 a day penalty is illegal. They can try and charge it but if you don't pay it there is nothing they can do.

Evil_Olive

Thanks Uganda - that takes a massive weight off my mind.
I haven't told the jobcentre yet as I haven't received the proper formal offer (the employer is sending me a formal written offer once my references have checked out - until then I don't 'really' have the job as such)- I don't anticipate a problem but figured it's best to be on the safe side. When it's all final I will go in then with the letter - I've had an advisor get a bit previous before & mess up my claim when I told them I was on a shortlist of two and thought I'd probably got the job (partly my fault probably - i was way over-excited and really thought I'd be chosen)
I will be clear when i go that i want the HB run-on and the Job Grant and want to continue my HB claim with change of circumstances if possible.

Wow! - I don't have to pay the HB run-on back at all! Cool! - that will be so much help - means I can start my new 'employed' life without the £500 overdraft I have built up over a year of living on £67 a week (mostly from fuel bills as I have no central heating - only freestanding electric convector heaters & oil filled rads & it's an old building).

Re: the £30 penalty, - It sounds like I don't have to worry about that now but I agree with you, it's daylight robbery - when I first moved out of my parents in the early 90s there was nothing like this - or the £60-£100 fee for renewing the tenancy each year which is pretty standard practice now. The penalty fee is also standard practice for rented properties round here which are 99% rented through letting agencies who are notoriously inflexible on terms - they know people'll just suck it up rather than lose a property. The penalty is laid out v. clearly in my tenancy agreement - I know it might be considered 'unfair contract' by a court but my flat is very, very cheap by the standards of the area (usually about £750-800 for a one bedroom flat), I've been here for 3 years and love it, the rent hasn't gone up for 2 years and the landlord is really good with repairs etc so I don't want to rock the boat - thanks for your advice though BigAunty & HappyMJ - I will bear it in mind if I do have any problem.

Thanks very much to all

missmontana

As Uganda says, apply for a budgeting loan, this helps with costs of looking for/starting work.

http://www.direct.gov.uk/en/MoneyTaxAndBenefits/BenefitsTaxCreditsAndOtherSupport/Employedorlookingforwork/DG_10018789

aneres

There used to be something called the Adviser Discretionary Fund - the name has changed now - but it's there to help with things like travel costs and clothing when you start work. You would not have to pay this back. Ask your Adviser at the Jobcentre.

skipsmum

Can't help with the question, just wanted to say:T:T:T:T:T:T:T
good to hear some good news on here!

Evil_Olive

Thanks everyone
Family & friends probably will be able to help with food & leccy card - the rent & travel was my main worry. I will work out a budget for the month and look into the budgeting loan & advisor discretionary thing if it looks like I'm going to need it.
Thanks again

MissMoneypenny

This short thread may help you too
https://forums.moneysavingexpert.com/discussion/3582091

The post from fluffymovie is very helpful and it appears she works in Housing Benefits.

Evil_Olive

Thank you MissMoneypenny - taking a look now

Edited to say:
yup, fluffymovie's post gave me a much clearer idea of the process.
I will now make sure I am in contact with both HB AND the JC at all stages and know what questions to ask and what things to say to each of them to prevent any slip-up - thanks