IS help, foster carer and house sale

lovelyjubley

Helllo
Please could you help with the following.

As a foster carer for a child under 5 I have been eligible to claim income support, which was marginally better financially for me than being on wtc (which foster carers are also eligible to be on) as it gives me free school meals which included some free school uniform and reduced price music lessons for my son and pays 2/3 of my mortgage interest. My last child has moved on this week.

1. How long am I able to remain on IS if I have no child placed with me.

2. Can I go straight onto JSA, will the mortgage interest payments be continuous?

3. Is IS and JSA time limited - as I am fully able to get a job, it is just that I prefer foster caring. The new county may take a few months to qualify me as a foster carer.

I have sold my house and will have 55k equity, however I have been unable to find a house that I can buy for this price and am unable to obtain a further mortgage. The house sale should be completed in 6 weeks. I am looking at renting a house in the next county nearer family so will be unable to claim any IS and receive no help with rent.

1. Will I still get ctc & child benefit.

2. Can I just put my money in my bank until I buy a house within 6 months, as I will then be eligible for shared ownership.

3. I wont have to pay any tax, vat or anything else to anyone else will I?

Within 6 months I hope to purchase a Shared ownership house, I will be fostering in the new county and will own half the house and rent the other half from the housing association.

1. Will Income support pay the rent on the other half? If so will I have to wait 13 weeks for it to begin like I did with the mortgage payments.

Is there anything else I have missed or advice you could give to me?

Thank you in anticipation
lovelyjubley

BigAunty

Income support tends to be paid to lone parents whose youngest child is under 5 so if that's the case, your IS will stop.

Here is some guidance about SMI

http://england.shelter.org.uk/get_advice/Buying_and_selling/support_for_mortgage_interest

"If you are receiving jobseeker's allowance (JSA) and you claimed after 5 January 2009, you will only be able to claim support for mortgage interest for up to two years."

Is there a chance that you might be on contributions based JSA? That doesn't seem to be covered by SMI but maybe I missed this criteria.

CTC and CB do not take into account capital (though I believe a certain level of interest on savings/investments can modestly impact CTC). Another poster will give more info, I'm sure.

Do some research on shared ownership - the housing forum is full of people complaining about how they cannot stair case up to buy the property, the high maintenance/service charges and the lack of saleability of their properties.

EDIT - I've come across this in a document

"There is also protection for people moving from other means-tested benefits to JSA – people who were getting Income Support or ESA before they became entitled to JSA can get SMI indefinitely, provided they moved to JSA within 12 weeks of their Income Support or ESA claim ending. So, for example, lone parents moving from Income Support to JSA because their youngest child has reached the age threshold at which the parent must claim JSA will not be subject to the two year time limit.

In certain circumstances people who stop claiming means-tested benefits but who claim again at a later date do not have to serve the full waiting period again before they can be entitled to SMI. These are known as the “linking rules.” They are primarily designed to encourage people to move back into work, but they also link separate periods of entitlement together for the purposes of the operation of the two year limit on receipt of SMI for JSA claimants."

www.parliament.uk/briefing-papers/SN06618.pdf‎

You need to verify if this is still in date. The linking rules on the doc.

2nd EDIT - If you are purchasing the mortgage part of the property outright (it's not clear) then it is not IS and its entry into SMI that is relevant, you'd also need be looking into housing benefit entitlement for the rental part.

Dunroamin

Will you actually be looking for work while you wait to become a foster carer?

BigAunty

lovelyjubley wrote: »

I am looking at renting a house in the next county nearer family so will be unable to claim any IS and receive no help with rent.

Without a child under 5, I cannot see how you can claim IS unless there are exceptions for foster parents.

However, according to this, the capital that you receive from your house sale is ignored for 6 months as long as you are seeking a new one to buy so I can't see why you can't get HB.

http://www.carlisle.gov.uk/advice_and_benefits/benefits/housing_benefit/benefit_calculations/capital.aspx

http://www.youreable.com/forums/showthread.php/795-Moving-House-amp-benefits

lovelyjubley

Hi thank you for your speedy replies, yes there are special rules for foster carers, who may claim wtc or IS.

I could look for temporary work but there will be training courses and home study with a social worker for fostering to attend during the day also. I also have an 8yr old who will know noone and has suffered more loss this year than a child should ever have to cope with so am unwilling to leave him in child care before & after school and during the holidays.

I thought the period between placements was 2 weeks but have been told it may be up to 8 weeks, so really need reliable confirmation on which it is.

Thanks again
lovelyjubley

lovelyjubley

The housing benefit rule is perfect, much appreciated news.
Thank you

lovelyjubley

Hi, yes I will have my own 8yr old living with me. I am able to claim IS as there are special rules for foster carers with under 5's.

I will be buying the mortgage part of the Shared ownership house outright so will not need mortgage help, only rent help if it is available in these cirucmstances?

thank you

nannytone_2

so you arent currently fostering and expect it to be a while before another child is placed with you?

i think you need more specialist advice than most on here can offer you, as if you arent fostering at the moment, from someone that hasnt dealt with fostering, it maybe that you have lost your entitlement to US for the present and would need to claim JSA.

as i said ... you need specialist advice

C.C.L.

Don't you get paid a retainer for any periods when you don't have a child in placement? The authority I fostered for paid a retainer. Yes you can choose between IS or WTC but as far as I'm aware this only applies whilst you actually have a child (or children) in placement. You need to have a good chat with your fostering officer or line manager, as even though you may still be registered as a foster carer if you're not working as one for whatever reason then benefits will not apply.
It could be that you will have to re-apply for benefits.

bloolagoon

lovelyjubley wrote: »

The housing benefit rule is perfect, much appreciated news.
Thank you

I understand that in order for it to be discounted you need to have an AIP and mortgage offer as without this you cannot be deemed as buying a house, that's what was posted here yesterday by someone who works in housing. Unless you have a guaranteed house in 6 months I'd take advice as they may not discount your capital.

mikey_bach

lovelyjubley wrote: »

Helllo
Please could you help with the following.

As a foster carer for a child under 5 I have been eligible to claim income support, which was marginally better financially for me than being on wtc (which foster carers are also eligible to be on) as it gives me free school meals which included some free school uniform and reduced price music lessons for my son and pays 2/3 of my mortgage interest. My last child has moved on this week.

You can claim Income Support if fostering the child doesnt have to be under five you can claim I.S until that foster child reaches sixteen..
As long as you are still on the foster register, and getting a retaining payment off the council and can show proof of this then your claim will
remain open whilst you await your next child.


1. How long am I able to remain on IS if I have no child placed with me.
As long as you receive foster payments from your LA

2. Can I go straight onto JSA, will the mortgage interest payments be continuous?
If you choose to go on JSA then your mortgage claim will link

3. Is IS and JSA time limited - as I am fully able to get a job, it is just that I prefer foster caring. The new county may take a few months to qualify me as a foster carer.
When you move and go to a different area then you will have to claim JSA whilst you wait to qualify as a foster carer in the new area, but when back on the books and a child in place you can apply to I.S again

I have sold my house and will have 55k equity, however I have been unable to find a house that I can buy for this price and am unable to obtain a further mortgage. The house sale should be completed in 6 weeks. I am looking at renting a house in the next county nearer family so will be unable to claim any IS and receive no help with rent.

If you have sold your house and intend to buy a new one then the money can be disregarded for twenty six weeks, and more subject to a SDM, as long as you are going to buy a property. You should be able to claim JSA and Housing Benefit but each will need a SDM decision first

1. Will I still get ctc & child benefit.
Not effected by capital

2. Can I just put my money in my bank until I buy a house within 6 months, as I will then be eligible for shared ownership.
Yes the Department will ask for completion statements and bank statements of the money going in and at this point you will have to inform them that you are buying a property in order for the disregard to be applied

3. I wont have to pay any tax, vat or anything else to anyone else will I?
No tax or vat on the capital, but solicitors costs for the selling and estate agents fees will be subject to VAT

Within 6 months I hope to purchase a Shared ownership house, I will be fostering in the new county and will own half the house and rent the other half from the housing association.

1. Will Income support pay the rent on the other half? If so will I have to wait 13 weeks for it to begin like I did with the mortgage payments.
No you would claim Housing Benefit for this

Is there anything else I have missed or advice you could give to me?

Thank you in anticipation
lovelyjubley

No I think you have it covered now