Advice for my parents - regarding benefits and 2 homes

pretzelnut

This could be very complicated so i apologise and thank you for reading in advance.

my mum and step dad own a house outright, they have just been given a council house as my mum has disabilities. They have put their own house up for sale.

My mum is 49 and works 20 hours a week i think and they get working tax credits with a disability premium i believe.

My mum gets high rate mobility (she has a mobility car) and high rate care.

My step dad gets carers allowance. He is 62 and was made redundant 3 years ago and has been told by many employers he's too old for a job. They live in a very small secluded place, and my step dad doesn't drive.

My mum is getting iller and needs to quit work but she cant afford too. She is off work at lest 1 week out of 4. She has been off work for 18 months before until forced to go back when the work sick pay scheme stopped. She now worries if she goes off sick again that she won't get ANY money at all.

She is so worried every month about being the main earner an barely just being able to pay the bills when working. The stress of not having any money if she quits is making her iller.

As they own a home they were told they aren't entitled to housing benefit or council tax benefit for the council house - Is this correct?

What happens when they sell the house, will they loose any of the benefits they claim.

My step dad is hoping to invest the money (80,000 at best) so that it provides them with some money to live off on a yearly basis. He's a very proud man and doesn't like talking about money or benefits. So I'm a bit sketchy on all the details.

I'd be grateful of any advice that i can look into for them.

Also, my step dad is now suffering greatly with depression, and a few other things, and has medication etc from the doctor. To the point where my mum will have to look for another carer as my step dad cant do it anymore.

They were also told that 2 people in the same house CANNOT both claim DLA, surely this is incorrect, as it goes on individual needs, NOT household needs.

Can they both claim DLA? Based on their own care / mobility needs?

Its all very messy, I'm tying myself in knots here. Im fully aware that they own a home and have a council house so why should they get housing benefit, but as the home was on the second floor and my mum needs ground floor she had no choice. They've swapped a very large 3 bedroomed house, for a tiny 1 bedroomed flat.

So please don't go on about it. They took the council house and it wasn't till they signed on the dotted line that they were told they won't get any help with the rent, so I'm just checking for them as they are extremely worried, financially. They aren't clued up on benefits having worked all their lives.

I just want to know if theres anything that can be done to help with their rent till the house is sold and they can financially support themselves off the proceeds.

Could my mum get a sick note and claim ESA. If so what happens after the year has run out? As she's concerned it only lasts a year, then she'd be back in the situation she's in now.

(I have no idea of joint claims)

rogerblack

I'm not going to get everything.
Hitting some points.

Housing benefit/council tax support.
If you have a home you're not living in - it's capital - and though the home may be disregarded for a period if it's being sold, once it is sold, there will be no entitlement till the money is used up.
Before it's sold - there may be an entitlement to HB/CTS.

If your mom claims ESA, if she's been employed and paying NI for 2010/11 and 11/12 - then she will be given contributory ESA. This lasts one year - if she's put in the work related group - or is not time limited if in the support group.
After the one year if placed in the work-related group - the answer is similar to HB/CTS - the house may be disregarded till sold - but not after it's sold.
Two people can claim DLA in the same house.

If there are reasonable adjustments her work could make that would make it easier for her to do her work - there has to be a really good reason why they won't do this.
If she gave up work, her husband could claim income support as well, topped up by CA.

Similarly - if the money is being used to buy a property - it may be disregarded.
I don't know if it's reasonable for them to be looking for a small property of their own.

pretzelnut

My mums employers have been fab and done all they can to adapt but unfortunately my mums illness is deteriorating and there is nothing more her employers can do to help her. She's already had a work related medical and all the rest of it.

If my mum claims ESA - contribution based as she has been paying contributions in those years, can my step dad claim IS at the same time.
How does the CA top up work? What are the rates of payment?

Sorry for my dumbness but I am trying to work out if they will be better of or not.

Otherwise my mum will continue to struggle on.

Whats the main differences between income based and contribution based ESA.

If she gets placed in the work group, what happens after a year is up?

If she is in the support group can she stay in there indefinitely if her medical needs allow it?

If my mum can give up work and have the same amount of income as she has when working (to cover bills and outgoings, no luxuries at all) then she would be happy even if she has to pay rent on the 2nd home. Its just useful to know that she may be able to get help.

shedboy94

For a start if she was off work for 18 months she shouldn't have been claiming WTC.

pretzelnut

shedboy94 wrote: »

For a start if she was off work for 18 months she shouldn't have been claiming WTC.

At the time (3 years ago) she wasn't, she was also doing 40 hours a week then too.

rogerblack

pretzelnut wrote: »

If my mum claims ESA - contribution based as she has been paying contributions in those years, can my step dad claim IS at the same time.

If contributions based - perhaps.

How does the CA top up work? What are the rates of payment?

Whats the main differences between income based and contribution based ESA.

If you have appropriate contributions in the relevant tax years, you are paid contribution based ESA, unless time-limiting applies.

If she gets placed in the work group, what happens after a year is up?
She is assessed for income-related ESA, which depends on household income and assets.
If she is in the support group can she stay in there indefinitely if her medical needs allow it?
yes

If my mum can give up work and have the same amount of income as she has when working (to cover bills and outgoings, no luxuries at all) then she would be happy even if she has to pay rent on the 2nd home. Its just useful to know that she may be able to get help.

If claiming means-tested benefits (income related ESA), the second home either needs to be on the market, or the capital from it needs to be being held while seeking a new house, otherwise they will not be payable.
http://www.entitledto.co.uk/ may be useful.

pretzelnut

rogerblack wrote: »

If claiming means-tested benefits (income related ESA), the second home either needs to be on the market, or the capital from it needs to be being held while seeking a new house, otherwise they will not be payable.
http://www.entitledto.co.uk/ may be useful.

Thank you - the 2nd home IS up for sale and has been for 8 weeks.

What do you mean regarding the capital being held whilst finding a new house. Do you mean the solicitor holds onto it, until they find a new house and the solicitor then pays for the house. Meaning they have never received any cash savings, so their benefits will not stop.

midnight_express

pretzelnut wrote: »

Thank you - the 2nd home IS up for sale and has been for 8 weeks.

What do you mean regarding the capital being held whilst finding a new house. Do you mean the solicitor holds onto it, until they find a new house and the solicitor then pays for the house. Meaning they have never received any cash savings, so their benefits will not stop.

This only applies if they intended to buy a new house, which from what you've said they don't. When they have capital they will not be entitled to means tested benefits. They will still get DLA.

SandraScarlett

No problem with 2 people in the same house getting HRC and HRM, if their conditions warrant DLA. HTH

xx

pretzelnut

oh I'm so confused.

House 1: is up for sale and has been granted 6 months disregard of council tax liability. 4 months remaining.

House 2: is £65 week rent and council tax.

I have told my parents to fill the forms in for housing benefit and council tax, the worst they can say is NO.

Then we will work it out from there. I have no idea what will happen once they have 2 lots of council tax to pay for. The housing market is exceptionally slow round here.

They are struggling now.

shop-to-drop

If you don't think it will sell quickly how about putting it in an auction or even keeping it and renting it out for an income? Surely that would cover their £65 week rent/council tax and then some.