Advice needed! I'm being given contradictory info!

teirsa

Please help me!! I've been getting income support, housing benefit etc for over 3 years now, due to my husband and I separating. I've been renting privately (and getting Housing Benefit) with 'the powers that be' in full knowledge that I jointly own the family home (husband still living in it) and would eventually get some capital. Fine so far as that's all been disregarded. Over the past 3 years I have occasionally checked with the benefits people as to what would happen when I eventually received the capital, with which I would intend to buy my own property. I was always told that the capital (in my bank account) would be disregarded for a few months if it was earmarked for buying property for myself. However, due to my divorce going through and financial settlement being agreed a couple of weeks ago, things are fast becoming reality. I am in the position of standing to receive around £120,000 capital in a few weeks. I am currently in the thick of house hunting. This week, having made a number of phone calls to housing benefit people, visiting my town hall etc I have been told different things. It now appears that once that capital is in my bank account, everything benefit-wise will be suspended. I WILL be buying a property with the money ASAP, but inevitably there will be a period of some weeks or even months when the money is sitting there and I will still be in my rented property. What I need to know is how should I deal with this best? If ALL benefits immediately stop I will be eating into the capital at the rate of around £1000 a month, and in this day and age, even though I live in Yorkshire(!) I still won't get a lot with £120,000 - and if it takes six months that's potentially going to go down further. Don't get me wrong - I believe in doing things correctly. I know that once I OWN my own place I won't get or need Housing Benefit, but I will still need income support + incapacity benefit, child tax credit etc etc. How do I stand in all this? Could I ask for my capital to be held in my brother's account until I buy? Probably not as it's technically mine, but I would really appreciate some advice on this. Thanks - and sorry for the waffle!

Scarlett1

as soon as you receive the 120K you are no longer entitled to benefits and will be expected to live off that money, how long it takes you to buy another property doesnt come into it, although I dont know much about IB, you can only have 6k in savings to be able to still receive IS, and 16K to receive any HB at all, and no CTB, you would also need to inform tax credits and will probably just receive the basic of £10 per child each week.

jet44

Have a look here:

http://www.disabilityalliance.org/

I hope that helps.

Hapless_2

Putting the money in your brothers account is a bit dodgy as it may have implications for his own tax situation. Not declaring money to the DWP is in itself illegal.

cattie

I've always been led to understand that when you sell a property as long as the received funds are earmarked to buy a new property with then you get a grace period of 26weeks during which the money will be disregarded as capital.

Contact an experienced welfare rights advisor or maybe Shelter for some informed advice.

Just found this info on the net also


Examples of Capital

• Capital which is (wholly or partly) taken into account for benefit purposes
• savings in a bank, building society etc.
• National Savings Certificates, stocks and shares
• property (unless in disregarded category)
• redundancy pay
• Tax refunds
• Savings in cash
• Premium Bonds.
• Stocks and shares, bonds and other investments.
• Property or land (but not your home or the home of your partner or an aged or incapacitated relative).

The following do not count as capital:-

• the claimant’s home
• a self-employed claimant’s business assets
• arrears of certain state benefits
• certain compensation payments
• a life insurance policy which has not been cashed in
• Personal possessions.
• Sale proceeds of your home (for up to six months if you intend to purchase another home).
• Money from insurance claims in respect of loss or damage to home or personal possessions (for up to six months if used to replace or repair).
• Any Social Fund payment.

regularsaver1

Incapacity benefit is not means tested

my boyfriend received £500k (obviously this is to buy a house ect) in compensation this week from a car accident and was informed that incapacity benefit will not stop which he so did not expect

regularsaver1

found this:

"
What is Incapacity Benefit?


IB is a benefit paid to people over the age of 16 who cannot work because of illness or disability. Your income or amount of savings does not affect whether you can get IB but there are different rules for claiming it, depending on how old you are, and whether you have paid enough National Insurance contributions. You may also be able to claim an extra amount for your partner.
IB is assessed and paid by Jobcentre Plus (external link, opens new browser window) or social security offices, which are part of the Department for Work and Pensions (DWP) (external link, opens new browser window) .
For more information, see our factsheet "Benefits and incapacity for work - information for deaf and hard of hearing people"."

from http://www.rnid.org.uk/helpdesk/frequently_asked_questions/benefits_and_rights/non_means_tested_benefits/

teirsa

"I've always been led to understand that when you sell a property as long as the received funds are earmarked to buy a new property with then you get a grace period of 26weeks during which the money will be disregarded as capital."OR"as soon as you receive the 120K you are no longer entitled to benefits and will be expected to live off that money, how long it takes you to buy another property doesnt come into it, although I dont know much about IB, you can only have 6k in savings to be able to still receive IS, and 16K to receive any HB at all, and no CTB, you would also need to inform tax credits and will probably just receive the basic of £10 per child each week."So which is correct? This is my dilemma!!Cattie, whereabouts did you find the info regarding 'what is NOT regarded as capital'? Thanks very much.

regularsaver1

what i was saying is that is looks like for that while until you actually own the property you might only be entitled to non-means tested benefits, such as incapacity benefit, unless the capital thing works with the 26 weeks

healy

I can confirm that cattie is correct.