New baby for 40% tax payer: Any support?

princessdon

365days wrote: »

There are many single parents I know, myself included, who have their own houses (mortgaged).

I get no 'help' with the mortgage. And nor should I you may say. However if I was to sell up and rent (after a short period where the equity was spent) I would be given housing benefit/LHA call it what you will of an amount that is far, far more than my interest payments and I live in a house 1 bedroom bigger than I would be entitled to rent.

Hopefully the new UC as I understand it does give some recognition to low earners who are mortgaged. I will be able to earn £500 more a month before tapering than someone who is in the same position but getting housing element.

Knowing my luck it will come in just in time for me to be no longer eligible.

If you are on JSA, and from your work record it can be seen that it is likely to be a short term issue, why shouldn't the mortgage be paid up to the equivalent cost that you would recieve in housing benefit/LHA ?

I would actually argue that even for folk on ESA if the interest element of their mortgage is less than the market rent, let them stay in their house and at least their family will benefit from it in the future rather than some greedy landlord.

365days wrote: »

Will this not be covered by the UC though. As I understand it everyone will have a base award and housing element. This then gets tapered off as you earn. Homeowners don't start tapering until they earn £500 more than tenants.

This is how I understand it and could be completely wrong.

No housing entitlement for mortgagees sadly, wish there was

365days

princessdon wrote: »

No housing entitlement for mortgagees sadly, wish there was

http://policyinpractice.co.uk/


UC calculator seems to think so......

princessdon

http://england.shelter.org.uk/__data/assets/pdf_file/0012/578559/Shelter_Response_to_SSAC_UC_regs_enquiry_2012.pdf


On my phone so can't post other links, unless they have backtracked income even permitted work means no SMI.

See page 2 of shelter page

princessdon

As far as I can see the zero earnings rule for SMI is still there. Bad news for many including carers who may want to work a few hours a week, do you have a link that that withdrew the zero earnings limit? I agree with lots of UC but this was something that horrified me, so I'd appreciate a link if withdrawn.

365days

Ok I how I read that is.....

If you have a mortgage and you lose your job you will not get SMI as such, however the universal credit you will receive will be the same as a tenant in same position and where they will be using their housing element to pay their rent homeowners will use it to pay the interest on their mortgage.

Likewise Person A as a renter v Person B as a homeowner in identical positions will get the same amount of money. One will pay rent with the 'housing element' the other will pay the mortagage.

I'm probably wrong:(

365days

princessdon wrote: »

As far as I can see the zero earnings rule for SMI is still there. Bad news for many including carers who may want to work a few hours a week, do you have a link that that withdrew the zero earnings limit? I agree with lots of UC but this was something that horrified me, so I'd appreciate a link if withdrawn.

You are right!:mad:

Zero earnings only qualify for mortgage help.

So the government can pay for me to live in more expensive rented.......bonkers.

princessdon

http://www.citizensadvice.org.uk/citizens_advice_response_to_ssac_consultation_on_universal_credit_and_related_regulations.pdf

See the table, depends on mortgage size but for many especially no or low numbers of children they are not going to get help. Many carers who work a few hours a week for sanity or a couple whose wife is part time and whose husband is made redundant will feel it.

365days

princessdon wrote: »

http://www.citizensadvice.org.uk/citizens_advice_response_to_ssac_consultation_on_universal_credit_and_related_regulations.pdf

See the table, depends on mortgage size but for many especially no or low numbers of children they are not going to get help. Many carers who work a few hours a week for sanity or a couple whose wife is part time and whose husband is made redundant will feel it.

Intresting. It states that my understanding was the old way they were going to work it and have decieded to not work it that way. CAB are recomending it goes back to the original proposal. Fingers crossed.