Advice Needed For A Single Mum - 'Homeless'

Beth72

Hi, I hope that someone can offer some help...weeks after giving birth to my son I had to move out of the house (rented in England) I lived in with my partner.

I was forced to move back to Scotland but couldnt afford to move back into the house I own as I couldnt afford to pay the mortgage. This house is rented out but the money I get in rent is not enough to cover mortage and pay rent on a place for me to live, so for the last year have been essentially homeless and have had to stay with my parents (along with my son who is now one) and use the rent I received to try to clear the debts I has accrued while living with my son's dad.

Prior to having my son I lived in Austrlia for two years and therefore was not making nat ins contributions in the uk (bear with me, this is relevant).

So on becoming homeless with a small child I found that I was:

not entitled to housing benefit (as I own a property)
not entitled to JSA (as I own a property and made no NI contributions for two years)
not entitled to income support (as I own a property)

Things have been tough, emotional trauma dealing with the break up of my relationship and also living in my parents house with a small child when I am almost forty!

Anyway, I have now reached a point, where nothing has really changed this last year and I really really need to get out of where I am and I need some help...

I am trying to work out a way to go back to live in the house I own so that my son and I can have our own space/life rather than living in a bedroom.

Trying to read through the info on here and cant get my head around whether its better to move back into that house and try to get work and claim working tax credits or not to work and claim income support and then eventually help with mortgage interest repayments etc...

Please forgive me if this sounds like I am simply looking for a handout from the government to live.. I am not. I worked for twenty years laterly as an IT Manager and I am horrified, mortified and utterly ashamed at the position I am left in and that I am unable to provide a home for my son. I am just looking for a way out of where I am at the moment, in the hope that if we can get settled into the house I own that perhaps I can work out a way to bring in some money maybe working from home or something.

At the moment everything just seems so bleak and miserable and I am getting nowhere and I NEED to do something..my son needs a happy mum that can give him the life he deserves.

And to those of you perhaps reading this and thinking 'just sell your house' .. its not that simple either.. the market where my house is located is not good, houses not selling .. so if I put my house on the market my tennant will leave anyway and I will still be left with a mortgage to pay and no way of paying it..and also, my house is the one thing I have left as an investment for my son's future ..... I hope you understand...

I hope someone can offer some advice to this muddled mind

jobbingmusician

I don't have an answer, but didn't want to read and run. Could you move back to the house and get a lodger? Google 'rent a room scheme' - sorry, I don't know how this might affect benefits.

RAS

Beth72 wrote: »

not entitled to housing benefit (as I own a property)
not entitled to JSA (as I own a property and made no NI contributions for two years)
not entitled to income support (as I own a property)

Hi

You were not entitled to contributions-based JSA because you were not resident and working in the relevant years. You might have been (and might be ) entitled to INCOME based JSA.

You live in Scotland so the law on tenancy is very different to England and Wales.

Head over to the housing forum and post up. PM artful lodger for help (he's a scottish LL)

They need to know:
Are you registered to let out?
Date tenancy started
Minimum term of tenancy
Date tenancy ends
Notice period?
I think deposits now have to be registered?
Declaring to HMRC for the whole duration of tenancy? (even if it is a loss now)

if you terminate the tenancy and move back in you will be entitled to mortgage interest support. I think this comes as part of your Child Tax Credits?

Beth72

Thank you both for your quick replies...

I want to move back into the house, but its pretty small ( I should have said its a flat but cos its got its own front/back garden I think of it as a house!). Want to move back in there so that my son can have his own room and its really too small to have a lodger.

I know I wasnt entitled to certain benefits because I hadnt paid NI

All arrangements for letting the house were legit, I am registered as a landlord, HRMC were advised etc... tenancy is due for renewal at end of year which is why I am now trying to sort something out so that I can give notice to terminate upon renewal, I just need to figure the reality of moving in there myself, ie if I could actually afford to provide for myself and my son and what help I could get.... I just cant get my head around whether its best to try get some work which means paying childcare or not to.. sad state of affairs really when you have to base a decision on whether to work or not on whether you can actually afford to work

pmlindyloo

You can terminate the agreement with your tenant and move back into your house.

Below assumes that your child is under five years old.

You can claim Income Support, Child Benefit, Child Tax Credit, Council Tax Benefit and Housing costs (the latter will pay the interest on your mortgage at a set rate after 13 weeks)

And, of course, child support.

The problem will be that you will not get the housing costs until 13 weeks after you apply for Income Support and then it will only pay some of the interest.

You may need to speak to your lender and ask for a payment holiday, go interest only etc etc

If you go back to work and do at least 16 hours each week then you can claim Working Tax Credits as well.

It is difficult to work out whether you would be better off working or not. Obviously depends on child care (some of which will be paid for from Child Tax Credits if they are registered care providers) and what you would be earning.

You can put different scenarios into the benefit calculator on www.turn2us.org.uk (click on Benefits search on the banner and you will see the calculator)

As I said it is really difficult to tell you what to do as we do not know your entire financial situation (would the child support cover some of the mortgage for example?) or your possible child care situation or your mortgage situation.

I should also say that child support is not taken into account when calculating benefits.

You need to google Support for Mortgage Interest and find out the current rates and speak to your lender before making any decisions.

Good luck!

BigAunty

Here are the rules for claiming HB for a property that you own but do not occupy, including how capital is worked out - what is the equity in it? It is not the ownership of a property per se that rules out means tested benefits, it's the capital in it.

In future, tax credits will be scrapped and Universal Credit will have the same general means testing as income based benefits like IS, HB, council tax discount.

http://www.dwp.gov.uk/publications/specialist-guides/technical-guidance/rr2-a-guide-to-housing-benefit/working-it-out/income-and-capital/

Lone parents are turfed off Income Support and onto JSA when their youngest turns 5. Child maintenance paid by the non resident parent does not affect benefits - you could be entitled to a percentage of their net wages after pension contributions have been deducted.

You can model your likely benefit entitlement in various scenarios on the Turn2us online benefit calculator.

For dealing with debts, post a SOA on the Debt free wanabee board (they'll tell you how to do this) - they can help with a debt management strategy. See the Debt Management advice on the Direct Gov website.

The Samaritans provide support to anyone in emotional crisis - get it off your chest with them.

For mortgage issues, potential repossession - see the advice for homeowners on the Shelter website.

Basic info on SMI

http://www.direct.gov.uk/en/MoneyTaxAndBenefits/BenefitsTaxCreditsAndOtherSupport/On_a_low_income/DG_180321

thorsoak

Are you able to claim for child benefit? And is your child's father paying towards maintenance for him/her?

Hope you can sort something out soon.

RAS

Beth72 wrote: »

All arrangements for letting the house were legit, I am registered as a landlord, HRMC were advised etc... tenancy is due for renewal at end of year which is why I am now trying to sort something out so that I can give notice to terminate upon renewal.

Good.

Please go over to the housing forum here. You have to issue the notice in line with rental dates etc, so you need advice on when the last dates are that you can give notice and hope for possession on particular dates.

Please get advice on claiming Income Support. It sounds like you should be able to get that now but that it may be reduced if there is equity in the property.

paddedjohn

Is it not possible to move back into your house and find some work?

Dunroamin

Sorry if I've missed something but how can you consider yourself homeless when you live with your parents?

Beth72

I just want to say a massive thank you to everyone who has replied, all comments are greatly received...

Sadly I do not receive any payments from my son's father, he himself is struggling to get by so I dont get anything from him at the moment.
And to Dunroamin.. i consider myself to be homeless as I dont not have a home of my own which I can actually live in at the moment. I shouldnt even be at my parents as it could affect their right to certain benefits they are also currently receiving so I am living there as I have no other option at the moment and of course they would not see their daughter and grand child on the street.

I am so very grateful to you all, sometimes it just needs the clarification from others as the benefits system is so complicated (well to me anyway, as I have never had to claim as I have worked my whole life)... I now have a plan and will be putting the wheels in motion soon and just hope that everything works out the way I hope it will..

again, many thanks to you all, and sorry Ihavent replied separately, not much spare time with a one year old to look after!

xxx