Better off on benefits

Trazy

How old are you both OP? I believe this can affect the amount of housing benefit you may receive

BigAunty

Fay_elizabeth wrote: »

..
'post on dfw board' - I'm not asking about debt I'm asking about benefits.

It seems we are having a much more holistic approach than you to addressing your budget.

Your current solution is to cease employment - apparently that's the magic bullet that will ease your existential and budgeting pain. It might be nirvana - a peaceful time to attend on a full time basis to your personal welfare and a springboard into new opportunities and a happier life, a chance to look into self employment in your favoured field.

Unfortunately, it might also be the start of a downward spiral, lead to a risk that you can't re-engage back into employment or withdraw more from society.

There are benefit changes ahead that you are oblivious to that will make it harder for people to claim to be better off on benefits - look into the Universal Credit system that starts up next year, council tax changes from April 2013 and so on.

Yes, we are giving you solutions to a problem that you can scarcely admit is the major feature of why you are struggling financially, namely that an absurd quarter of your net income is spent serving a debt, a ridiculous percentage, when there are many debt management strategies that will see them either legitimately written off or reduced to an amount that won't impact your quality of life so much.

You suffer from depression and anxiety - surely the debts aren't helping?

Also, with two people living in London on part time wages, one with big debgts, we aren't surprised your disposable incomes are challenging.

As to the locked in contracts - go read the Ts and Cs and go ask on the relevant MSE boards to see if there are any get outs - sometimes paying a penalty charge is less than continuing. I don't know the answer but do look into it rather than write it off.

pickpocketlocket

Fay_elizabeth wrote: »

Usual suggestions of 'making meals from scratch' - i already do
'cutting down on your phone bill' - HOW i'm a 2 year contract
'post on dfw board' - I'm not asking about debt I'm asking about benefits.

Instead of focusing on cutting down your outgoings you would rather see how you can play the system? Classy!

elaine12022

If you are living with your partner then yes his income would be taken into account. Surely you both contribute to household expenses?

I can understand your frustrations, it sounds like you are struggling with your health. But being on benefits is not a life of ease. And the next few years are bringing a lot of changes.

Is there a chance of looking for a different job? Perhaps doing some course of study to help your chances?

If your health problems are likely to last longer than 6 months and you have problems with personal care and/or mobility issues you may be able to get Disability Living Allowance. It can be a fight to get it, but it isn't counted as income so you're not penalised for getting it! (Benefits and Work website have a basic questionnaire to give an idea of whether you might be eligible).

:A

fishybusiness

I fail to see how your justification for not working can hold true.

Outgoings:
Rent and bills: £365.00
Council tax: £60.00
Food: £80.00
Phone: £50.00
Credit card repayments: £120.00
Loan repayments: £50.00

The simple fact seems to be that as your outgoings are almost level with your income you have taken on too much credit. Remove your credit card and loan repayments and you are £170 a month better off.

Deal with your £50 phone bill and you could be another £30 per month better off. £50 a month for a phone bill is excessive when money is tight.

My advice is to think about working out some kind of payment plan with your creditors and give yourself some breathing space.

Fay_elizabeth

Alleycat wrote: »

I've just done a rough calculation based on the situation as you have described it and the figures you have given. Assuming your partner earns the £749 net quoted above and you are both over 25 years and under 65 years, you would only be entitled to approx £300 Housing Benefit per calendar month. I wonder if the figures showed differently on the Lambeth website as you put the details in as a single claimant?

No I didn't, I put us in as a couple and I entered the exact details I put in my first post.

BigAunty

Alleycat wrote: »

... Assuming your partner earns the £749 net quoted above and you are both over 25 years and under 65 years, you would only be entitled to approx £300 Housing Benefit per calendar month. I wonder if the figures showed differently on the Lambeth website as you put the details in as a single claimant?

Age is not relevant when it comes to a 1 bedroom rate for a couple. Age is only relevant when it is a single claimant - those who are single and under the age of 35 (used to be 25 but changed in January) can only get a shared accommodation rate rather than 1 bed rate. Age is not relevant for the OPs benefit claim.

EDIT - I haven't double checked the calculator but I would be surprised if a couple netting nearly £1000 in benefits and employment income per month only have to find £35 a week towards their £150 per week rent, but there you go, I haven't verified this.

Man_Overboard_2

The OP's original question is a perennial one, and there is no simple answer.

There is talk of a 'Universal Credit' - I have often thought that it would be useful if the Welfare State were to give everybody a basic amount to live on, according to their needs - the bill would be met by a tax on employers (who, in turn, would be relieved of a huge chunk of their wages bill).

People would then be able to choose freely between living at subsistence level, or getting a job in order to top up their 'benefits'. Obviously, wage levels would be lower than what we currently take for granted, because employers are already being heavily taxed in order to guarantee a bsic income for all.

Please think about this carefully before posting an abusive reply - it would not be a 'scroungers' charter' - it would remove the contradiction that it is sometimes 'better' to live on benefits alone, than to go out to work.

Fay_elizabeth

Listen guys,

I have taken what everyone has said and advised into account and despite my stubbornness I can see that I need to reduce my debts in order to improve my quality of life. I don't now think that going on benefits is the answer, I hadn't taken into account all the changes that are coming into place within the benefits system.

I will stick at my job (that i hate), try and do more hours when I can and try to get some of my debts paid off. I have already contacted CCCS about a debt management plan and I just contacted my mobile phone provider and managed to get my bill down from £50 a month to £36 so I am quite pleased about that.

Thank you all for your thoughts.

Morlock

BigAunty wrote: »

Currently, more is paid out in benefits than is received in income tax receipts, a really unhealthy inbalance in the nations accounts - perhas you've heard of the deficit and benefit changes that are in place to redress this? The country can't afford to treat couples as individuals for benefit purposes.

Benefits have historically risen with the cost of inflation, wages haven't. Benefits are designed to provide a minimal amount that is considered reasonable to live on.

Wages have been kept so artificially low, that they now often equate to less then the government deem to be the minimum amount of benefits one needs to survive. The government's solution is to slash the amount deemed necessary to survive at a subsistence level, by slashing benefits, not raising wages.

Something is amiss when even basic utility companies rake in billions of pounds of profit per quarter, whilst the majority of the working population struggle to pay their basic utility bills.

Leading people to believe that benefits need slashing to save the economy is smoke and mirrors, the ignorant and uneducated suck it all up, ignoring more powerful adversaries who are the real cause of the problem.