Benefit entitlement with assets?

bare_foot_hippy

Hi, asking on behalf of a friend. He was recently asked to leave work after 13 years in the same company due to ill health. He had a small settlement but it's not going to last long. That plus savings are under £6000 but he owns his own flat (small mortgage on it so capital assets are over £16000). He couldn't afford to live in the flat (and there aren't many jobs in that area) so he moved into his campervan and lets the flat. The rental income covers the mortgage payments and provides a little bit extra to cover insurances but it's very tight - money for food and gas will soon be in short supply. He doesn't expect Housing Benefit as he's happy to stay in the van but is wondering if he can claim JSA or ESA? He'd have enough contributions for CB-JSA so do they have any other rules? Will his assets count against him or will they not count them? Also can he claim without a home address? I can accept post for him at my house but he's obviously not resident here so will the DWP care?
Because of his health he probably isn't able to fulfill the JSA criteria of being available for work 40hours/week so might need to try for ESA. (He can get medical certs from the doc and his specialist but it's a variable condition which I know from personal experience can be tricky to claim with...) Would his assets/residential situation count against him here too?
Hope someone out there can provide a little advice/clarity - the online calculators and gov website were as clear as mud.

mazza111

He can claim either CB based ESA or JSA. But with a varying condition, it's the WCA that he would need to pass.

Dunroamin

Contributions based benefits aren't means tested. If he'd stayed in his flat he'd be able to claim help with mortgage interest and also council tax so it'd be simpler if he moved back when the tenancy agreement ends..

HB58

6 months JSA or 12 months ESA on a contributary basis. After this, in most cases* the benefit will be means tested.

* Yes, I know that time in the Support Group of ESA is unlimited but I am trying to keep things simple.

Mojisola

bare_foot_hippy wrote: »

he owns his own flat (small mortgage on it so capital assets are over £16000).

He couldn't afford to live in the flat (and there aren't many jobs in that area) so he moved into his campervan and lets the flat. The rental income covers the mortgage payments and provides a little bit extra to cover insurances but it's very tight - money for food and gas will soon be in short supply.

Will his assets count against him or will they not count them? Also can he claim without a home address?

His assets (the flat) won't matter while he's on CB JSA. Once he goes onto means tested benefits, the value of the flat will be considered as capital and the rent will be counted as income.

BigAunty

Perhaps he should just sell the flat?

It sounds like it's not a really feasible property because he apparently can't find work in the area so will never occupy it, and even his earning capacity seems compromised by sickness/illness, plus living in a camper van isn't a decent long term strategy.

If the tenant stops paying rent or there are void periods, it will drag him under as he doesn't have much in the way of savings. Also, when he sells he could face capital gains tax, wiping out much of the property price inflation he's relying on.