Tax credits/Housing benefit.

Mozz01

Nightmare.

I recently moved in with my partner, we had been in a relationship for some months, and i was staying over a couple of days a week, so to do the right thing when i moved in we informed the benefits thinking it would be straightforward.

1 Housing benefit suspended and new claim rejected, i have a savings bond that cant be touched for another 3 years, this takes us over the savings limit, i am unemployed, my partner part time worker and even though there isnt enough money coming in to pay the rent (private)the councils answer is tough, go away stop bothering us.

2. tax credits. Nil award due to me earning 26000 the year before, and 20000 earlier this tax year, and to top it off by me moving in they have sent a letter saying we owe them 2 grand as weve been overpayed.

So before i moved in my partner had a part time job, got her rent topped up and tax credits every week and got by, now she get 400 a month from her salary, 130 child benefit and nothing else.

I am actively seeking work and expect to start in 2 weeks, (agency minimum wage) but still cant see us managing.

Anyone offer any advice, as it seems a very odd situation we are in that it would have just been easier for me not to move in in the first place, and to litterally be able to pay the rent i might have to move out again???

pmlindyloo

When you say the bond can't be touched for 3 years is this what you mean? Or if you cash it in you won't get the same value as you would after 3 years?

whodathunkit

How were you paying your own rent before you moved in?

Caz3121

Mozz01 wrote: »

2. tax credits. Nil award due to me earning 26000 the year before, and 20000 earlier this tax year, and to top it off by me moving in they have sent a letter saying we owe them 2 grand as weve been overpayed.

I would investigate where the £2k overpayment has come from
If your partner had a single claim then this would have been closed when you moved in and an application was made for a joint claim
As you got a zero award for the joint claim I assume this was an overpayment on the single claim - how many weeks after you moved in were they still paying? it seems a very large amount if the claim was closed promptly

Mozz01

whodathunkit wrote: »

How were you paying your own rent before you moved in?

I have a mortgage, which i was paying with my salary, i moved 150 miles to move in with my partner, and gave up my job because of the distance.

I am currently trying to rent out my mortgaged property.

I expect to be in better paid work soon, i am a tradesman and time served etc, but its the here and now im worried about.

Mozz01

pmlindyloo wrote: »

When you say the bond can't be touched for 3 years is this what you mean? Or if you cash it in you won't get the same value as you would after 3 years?

Cant, i have tried and told not under any circumstances.

Mozz01

Caz3121 wrote: »

I would investigate where the £2k overpayment has come from
If your partner had a single claim then this would have been closed when you moved in and an application was made for a joint claim
As you got a zero award for the joint claim I assume this was an overpayment on the single claim - how many weeks after you moved in were they still paying? it seems a very large amount if the claim was closed promptly

It seems they got the wrong date from when i moved in, i have spoke today and they took the date i terminated my employment as the date i moved in, so i expect (hope) to get the overpaymnet scrubbed.

The strange thing is how they work the tax credits, if you have paid work from April until Oct, and are then unemployed for the rest of the year you cant claim, as they take your first 6 months salary into account.

Same with the Housing benefit, Citizens advise agree not much can be done, we are in a situation where we cant pay the rent, so stand a chance of becoming homeless, which the council will then have to find us a place to live??

Crazy world we live in.

marliepanda

Mozz01 wrote: »

I have a mortgage, which i was paying with my salary, i moved 150 miles to move in with my partner, and gave up my job because of the distance.

I am currently trying to rent out my mortgaged property.

I expect to be in better paid work soon, i am a tradesman and time served etc, but its the here and now im worried about.

Is there equity in the property? You won't get many/any benefits if you are sitting on an asset and not living in it.

Why did she not move in with you? To leave a job and a mortgage to try and claim benefits in a rental with no job seems foolish. At least wait to get a job before upping 150 miles.

Caz3121

Tax credits are based on the income in the tax year, as many people can not be 100% certain what their total income will be for the year ahead they will initially base it on the previous year - then they are finalised once actual figures are known (P60s etc)

So if someone was not working April - October and received tax credits then got a job for the rest of the rest of the year which put them over the limit then they would have to pay back all the tax credits received

How much equity is in your property - this counts as capital too so even if you did not have the bond you may find that the property also means you would not qualify for means tested benefits such as housing benefit

Does your partner not receive maintenance for her children?

Mozz01

No equity in the property, maybe a couple of thousand, i only bought it last year.

She couldnt move, children settled in area, familly etc.

Mozz01

So if someone was not working April - October and received tax credits then got a job for the rest of the rest of the year which put them over the limit then they would have to pay back all the tax credits received

That situation is why people refuse to go to work, its not worth it is it?