Short term benefits whilst on SSP

bloolagoon

Someone is under a lot of financial stress. She has not worked for some years due to illness and her one year is up on ESA. She hasn't received it for several months due to household income.

Her husband is ill (short term awaiting surgery) and only gets SSP. They have a mortgage and 2 children. She said she is not entitled to benefits and that she has been informed this by those in the know. They have mortgage sickness cover for the cost of the mortgage paid directly to the mortgage company so it's only living costs.

Her husband is on a good wage but for 2 months he has gone down from his wage to SSP and they have no money and little savings.

Is there anything that they can claim as he is expected back to work in January all being well.

pmlindyloo

If the husband is only receiving SSP, the wife has no income and they have savings less than £16000 then they can put in a joint claim for Income Support (to 'top up' their income.)

Income Support will then entitle them to Council Tax Support. As far as I know they will not be entitled to Support for Mortgage Interest as this is covered by their mortgage sickness cover.

Depending on the husbands previous salary they could make a claim for tax credits (both working and child tax credits since when you are on SSP you are still counted as working). If they are already receiving tax credits they should notify tax credits of the change in circumstances. Tax credits are complicated as they are based on the previous tax year but they could telephone and see if they might have an entitlement based on the change of circumstances.

bloolagoon

Thank you, they were told that the insurance for their mortgage counted as income so could not get income support.

Wages are too high over the annual for tax credits taking into account prior and January onwards.

Can you confirm their income from the insurance should not be taken into account please?

lld01

It is taken into account but only up to a certain amount (the weekly amount awarded for their mortgage interest). See DMG Ref 28232.

bloolagoon

lld01 wrote: »

It is taken into account but only up to a certain amount (the weekly amount awarded for their mortgage interest). See DMG Ref 28232.

Thank you I will look at that, they were told that because the policy pays full mortgage not just interest and for additional borrowing that the overvalue was income.

nannytone_2

maybe they need to contact their lender and ask for a payment break, or ay least to go interest only for the time being

lld01

bloolagoon wrote: »

Thank you I will look at that, they were told that because the policy pays full mortgage not just interest and for additional borrowing that the overvalue was income.

That sounds incorrect to me - the example in the DMG makes it quite clear.

Also they would only be able to decide on this once the housing costs DM has made their decision on the allowable mortgage balance. Have they made a claim for IS or just enquired?

bloolagoon

nannytone wrote: »

maybe they need to contact their lender and ask for a payment break, or ay least to go interest only for the time being

That is possible I hadn't thought of that as all it would mean is that the insurance company would pay less but they'd still not have living costs. 2 adults and 2 children on £87 a week is not enough to live off.

Would they see giving up the policy as depriving themselves?

bloolagoon

lld01 wrote: »

That sounds incorrect to me - the example in the DMG makes it quite clear.

Also they would only be able to decide on this once the housing costs DM has made their decision on the allowable mortgage balance. Have they made a claim for IS or just enquired?

I am fairly certain she said she applied but I cannot confirm at this point until I speak again. They said SMI was £600 pm, income from insurance is £1500, so £900 income. I can't remember exact figures but they are approximate.

lld01

bloolagoon wrote: »

I am fairly certain she said she applied but I cannot confirm at this point until I speak again. They said SMI was £600 pm, income from insurance is £1500, so £900 income. I can't remember exact figures but they are approximate.

The way I read the regs is that they should only take £600pm into account, based on those figures. They still might not qualify with that, but worth looking into.

The wife may be able to claim PIP because of her illness?

pmlindyloo

lld01 wrote: »

The way I read the regs is that they should only take £600pm into account, based on those figures. They still might not qualify with that, but worth looking into.

The wife may be able to claim PIP because of her illness?

I agree. The quote is:

Payments made direct to a third party when the claimant could not receive the income direct
[FONT=Arial,Helvetica][FONT=Arial,Helvetica]28232 The DM should take these payments into account but only up to the level of the housing costs included in the applicable amount. Any excess should be ignored1. This disregard applies
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[FONT=Arial,Helvetica][FONT=Arial,Helvetica][/FONT][/FONT]
[*][FONT=Arial,Helvetica][FONT=Arial,Helvetica]to a payment if the claimant could not successfully apply to receive the income direct [/FONT][/FONT]and [FONT=Arial,Helvetica][FONT=Arial,Helvetica]
[*]for any period before the claimant could expect to get a payment in a case where the claimant could successfully apply to receive the income direct.[/FONT][/FONT]
[FONT=Arial,Helvetica][FONT=Arial,Helvetica][/FONT][/FONT]
[FONT=Arial,Helvetica][FONT=Arial,Helvetica][/FONT][/FONT][FONT=Arial,Helvetica][FONT=Arial,Helvetica][/FONT][/FONT]Example
[FONT=Arial,Helvetica][FONT=Arial,Helvetica]Asif claims JSA(IB). He has a mortgage protection policy that pays £50 a week.
Under the terms of the mortgage protection policy payments must be made direct to the building society. The money is used to meet Asif’s mortgage repayments.
Asif’s applicable amount includes £25 a week for mortgage interest.
[/FONT][/FONT][FONT=Arial,Helvetica][FONT=Arial,Helvetica][/FONT][/FONT](Decision Makers Guide 28232)
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The DM treats Asif as having income of £25 a week. The balance of £25 is ignored.



The other thing that you might need to check is whether this is just protection for mortgage. It might be a policy that pays a certain income each week as well (unlikely from what you say but there are such policies)
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