Can someone check I am right Re benefits?

princessdon

I have had a phone call today from a "friend" not close but know them well ish.

Their OH has been made redundant today from a well paid job (so over the Tax Credit limit until April).

3 Children, mortgage and she works 12 hours a week earning £130.

I take it other than CB JSA they won't get anything until April?

He hasn't been paid for January and so no notice and money needs reclaimed from the Govt Fund. Is there any special cases where they will have nothing coming in and no notice, time to prepare and redundancy pay?

I don't think there is but would rather check than give wrong info out.

Thanks in advance

MamaMoo_2

If they phone tax credits and adjust their earnings going forwards, there may be entitlement.

Advise them to run their situation through the calculator at entitledto.com

concerned43

there should be help out there..did the redundancy come as a shock - did his work go through the correct redundancy procedures?
apart from JSA (contribution based), there is tax credits, CB and also a possible tax return:

http://www.hmrc.gov.uk/incometax/stop-work-refund.htm

don't know about council tax benefit but you can check with your relevant council.

princessdon

Administration so no notice and a shock. I ran via entitled to and Zero!

I don't think Tax Credits and CTB are applicable due to her income and year to date income.

concerned43

I am not a big fan of entitled to and prefer to use the tax credit calculator
http://www.hmrc.gov.uk/taxcredits/payments-entitlement/entitlement/question-how-much.htm

but it won't hurt your friend to go down to local CAB and get a proper benefit check.

princessdon

From what I know - their income over 2012-2013 will prevent anything as they can't claim Income Related benefits on £130 and mortgage.

This means for them, no wage for Jan and nursery fees (3 days a week for 2 children) plus a mortage due tomorrow.

I don't think no notice and needing claim from liquidators gives any special criteria, yet at the same time they didn't get the 3 months and 18 years (some at 1.5 weeks) entitement that a traditional reduncancy would give.

They also have £2K on a credit card for work and 2 week Annual Leave owed

xylophone

https://www.gov.uk/your-rights-if-your-employer-is-insolvent/overview
Presumably he has seen this?

supernatural619

princessdon wrote: »

From what I know - their income over 2012-2013 will prevent anything as they can't claim Income Related benefits on £130 and mortgage.

This means for them, no wage for Jan and nursery fees (3 days a week for 2 children) plus a mortage due tomorrow.

I don't think no notice and needing claim from liquidators gives any special criteria, yet at the same time they didn't get the 3 months and 18 years (some at 1.5 weeks) entitement that a traditional reduncancy would give.

They also have £2K on a credit card for work and 2 week Annual Leave owed

Will he not get any redundancy? Did they not pay motgage payment protection? But they won't need to pay for childcare if one of them is out of work. Unfortunatly nothing can be done about having 2k on credit cards unless they've paid payment protection.

RAS

supernatural619 wrote: »

Will he not get any redundancy?

Not if in administration - may get a minimal amount from the Govt scheme but that could take months.

But they won't need to pay for childcare if one of them is out of work.

They will have to give a month's notice or maybe more and then try to find a new provider when he gets a new job,

I think they need to check all their insurance policies incase they have any cover for anything.

Talk to mortgage provider and ask for payment holiday. Mortgage support will kick in after 3 months, I think

He needs to reclaim tax as soon as prracticable.

Council tax probably already paid off for this year. Might be worth seeing if they are entitled to any CTB based on the new income (suspect not but ask).

I suggest that they both need to go round the house and identify everything that they no longer use. Hubbies tempoary job when not applying for new work is to e-bay, amazon and organise car bootsales.

BigAunty

Tell them to look at the Shelter website which has info for owners struggling to pay their mortgage and to post their situation on the Debt Free wanabee board.

princessdon

Thanks all. Got a JSA worker I "use via work" to check.

They get NOTHING other than £71 pw + wages, so £200 pw to feed, clothe and house a family of 5.

The nursery needs 1 month notice so they need to pay Jan and Feb as a minimum.

Good news is their mortgage company have agreed to a 12 mos payment holiday as they have over paid, so that's a weight off their shoulders.

They have some savings so won't starve, but I find it harsh that a family who contributed get zero when poop hits the fan.

Good news is he has a few things in the pipeline, so fingers crossed they will work out, because £200 pw isn't sustainable.