Work vs. Income Support

LeiLeiMusic

I'm sure I will get a bit of stick for this post but I would really appreciate some non-judgmental assistance with a dilemma.

I have worked full time since I left school at 16, I have a son (aged 3) and I was made redundant in January this year. I have a lot of debt and stupidly got into a real mess with payday loans. I sold my car and voluntarily repossessed my property as I was struggling.

I found a new job which I started in May but it's a lot less pay than I was on before. I am currently in arrears with my son's nursery fees and I am starting a degree with Open University this month. I am really considering quitting work, having my son at home and concentrating on my degree with a view to going into full time work again when I have graduated.

I cannot seem to find out online anywhere exactly what I would be entitled to if I didn't work. I want to make an informed decision because I don't want to take a risk and end up worse off.

Any assistance you can give me with what I would be entitled to in these circumstances, or who I can talk to for advice, as well as anywhere I can get grants/bursaries for my degree to cover the arrears I have would be really appreciated!

Thanks

BigAunty

The Debt Free wanabee board is your best bet - the posters there will help you identify the best strategy for dealing with them. The Direct Gov website also has good info on debt management.

How are you planning to pay for your course fees?

You won't get any type of grant or bursary that will directly help with debts. The Turn2us online benefit calculator also has a grant checking facility - perhaps there's a grant there that may help with some educational costs, I don't know. There's a student money forum on MSE where you might get more info.

Bit concerned about what 'voluntary repossession' entails. My understanding is that handing back the keys to the lender (if that's what you have done) is one of the worst possible things to do and is a total last resort (based on information published on the Shelter website which says the lender tends to pursue the ex owner for all sorts of charges and debts). Did you consult with any advice experts before you did this? Other options may have included a social housing landlord buying the property and letting you stay there as a tenant.

AFAIK, you will get Income support (until your kid is 5 and you will be put on Job Seekers Allowance), child tax credits and child benefit, plus council tax discount and HB.

I think students of OU can now get student loans?

The child support payments you receive from the father do not affect any benefits you receive. You would be entitled to a percentage of their salary (see the CSA website).

rogerblack

I would note that IS is currently payable until the child is 5.
This age has been falling rapidly in the last few years, and though 5 would seem a logical stopping point, it's questionable if it is, in all circumstances, and that they will not try to further lower it.

Plus, income-based income support will change over to universal credit during that time.

If you can possibly manage without becoming reliant on the benefits system, I would strongly advise this.
Agree with the other comments above.

BigAunty

What happened to the 25k redundancy payout and bonus you were due to get in January? Did this not fully cover your debts and leave you anything left over in the 4 months you had without employment?