Housing Benefit and Bugetting

crystalcadence

So sorry if this should have gone elsewhere, newbie and some of the sections seem to crossover in places. I am also sure that this question has been asked time and time again.

As I previously explained in an earlier thread, I am a newbie to housing benefit as I recently lost my Grandmother who I was the live in carer for. I'm now in a one bed flat and paying all the bills myself.

Because I do varying amounts of overtime each month, though this possibly comes to an end in a couple of months time, my housing benefit is getting recalculated on a month by month basis at their request. For example, I got a letter right at the start of the month saying I have to give them May's payslip giving me a deadline that was before I would get it.

I've been debt free for two years so I know how to live within my means but when I don't know what those means are, how can I?

I am worried sick that I'll end up back in debt. Its slowly making me go cuckoo. How do other people cope?

LondonGal

I think you MUST work on the premise that you will get NO overtime, so only your basic pay and base all your living costs on that. It is the only sure way to ensure you have an accurate budget.

It is for that very reason that overtime is not included in a CFS.

As for the DWP requesting payslips you haven't even got yet, a phone call 'should' sort that out. However I make the huge assumption the person on the other end of the phone has a brain and doesn't just work on what the computer tells them. Computers only do what we tell them, so that must be able to be changed.

Parva

I personally use a program called "You need a budget" - there's videos of it on youtube to give you an idea. However, that's not to say you should buy that program, just merely try and follow what it attempts to do. Basically, everytime I get paid I assign every single penny I have to a certain purpose, such as gas, electric, food, clothing, blah blah. I also have a slice put aside for birthdays, xmas, emergencies and even a 'surplus' area in which to dump any remaining money (as if!) which can then be used if needed.

Obviously, sometimes things happen and you have to fork out for unpredictable expenses. This is when you look at your budget again and maybe from last month you have carried over a little extra because you didn't spend your quota on shopping or something. This can be put towards that debt. Once you have exhausted any surpluses then it's a case of slimming down any other categories (such as food / take-aways / clothing) to get that budget to actually manage to pay the debt.

It's amazing just how well this works because it makes you realise where every penny is going and you actually start building up a safety barrier pretty quickly.

I'm not saying this approach will work for everyone, it just does for me. In the meantime, I would try to put aside whatever additional funds may be required to pay the housing benefit shortfall. I know it probably won't be easy but better that than a shock bill and bigger problems in the long term.

Horseunderwater

I concur with basing any budget on basic net pay. OT is just that & must not be relied on to live. Basic net income must pay for all essential bills, which are Rent, council tax TV license, utilities & food + cost of getting to work. Also Contents insurance.

DomRavioli

Don't pay for a budget app - there's hundreds of free ones.

First of all, do an SOA (statement of affairs) on this website (will be under the budget bit) without any overtime and see where you get. You can then make cutbacks based on that, and any overtime you do get makes it a lot easier to save and plan for unexpected shortfall.

Housing_Benefit_Officer

Every £1.00 extra in earned income you lose 65p in Housing Benefit.

So after paying tax and national insurance you get to keep 35p of every extra £1 you earn.

crystalcadence

Housing_Benefit_Officer wrote: »

Every £1.00 extra in earned income you lose 65p in Housing Benefit.

So after paying tax and national insurance you get to keep 35p of every extra £1 you earn.

This is helpful information to know - I didn't realise it was such a chunk taken.

Unfortunately, at present, I am reliant on my overtime. I tried a budget on my basic but even squeezing every penny I am short.

The job I have was only meant to be something to cover my limited expenses and give me a break from my care duties so it doesn't bring in much.

All my savings were eaten by the sudden house move.

FluffyDuck3

When you do over time put 65% aside to cover the extra rent you'll have to pay. Maybe try a bit more to cover the months that you earn a basic wage.

Write to them regarding the request for May's pay slip.

Can you look for another job that has regular hours and pays more?

Housing_Benefit_Officer

crystalcadence wrote: »

This is helpful information to know - I didn't realise it was such a chunk taken.

Unfortunately, at present, I am reliant on my overtime. I tried a budget on my basic but even squeezing every penny I am short.

The job I have was only meant to be something to cover my limited expenses and give me a break from my care duties so it doesn't bring in much.

All my savings were eaten by the sudden house move.

This is the benefits trap - if you get some help with your Council Tax then you also lose 20 p per week Council Tax Support so you get to keep just 15 pence in every £1 of extra earnings.

crystalcadence

FluffyDuck3 wrote: »

When you do over time put 65% aside to cover the extra rent you'll have to pay. Maybe try a bit more to cover the months that you earn a basic wage.

Write to them regarding the request for May's pay slip.

Can you look for another job that has regular hours and pays more?

This is what the subject of my previous thread was. Work is hiring another person and once they start, overtime for all will cease (cut backs.)

I've gone through my options and decided that I would find another job but I would like to try to stay where I am and either go for promotion or stick around long enough to retrain for another job which would provide more stability. I really enjoy my current job - just the money that's the issue.

It's just very awkward and annoying to try and work this budget out. I've never had to be on benefit like this where I don't know where I am. Always had a salary that I could budget with.

LondonGal

crystalcadence wrote: »

I've gone through my options and decided that I would find another job but I would like to try to stay where I am and either go for promotion or stick around long enough to retrain for another job which would provide more stability. I really enjoy my current job - just the money that's the issue.

Sadly this is not an option you may have. You may have to apply for other jobs in order to avoid getting into debt - it's good you've identified the issue and it would be prudent to try to address it now.