Help! Spent housing benefit repaying old debt

Housing_Benefit_Officer

pmlindyloo wrote: »

Another option is to ask the council about a Discretionary Housing Payment. You need to be claiming HB (which you are) and some councils will use it to pay rent arrears to prevent homelessness.

Unlikely that DHP will be paid as he already received Housing Benefit to pay his rent in the first place - otherwise everybody would blow their Housing Benefit and then get the State to pick up the tab. DHP is for those in genuine financial hardship not for the frivolous.

Probably best if he asks the Council to pay his landlord direct.

allen35

Step 1) Visit your Housing Benefit Office and request your rent payments be made direct to your Landlord because you have fallen into arrears and are struggling to deal with your budgeting due to your health.

2) If your HB doesn't cover all of your rent apply for a DHP whilst at the Council office.

3) If you are in receipt of Income Based benefits such as ESA/JSA and have been for 26 weeks continuously contact Jobcentre Plus and request a budgeting loan form, single people can borrow approx' £348 interest free and repay weekly through benefits.

4) Inform your LL of all the circumstances and the steps you have taken (above) to pay off the arrears and to ensure it never happens again.

5) Check you are receiving correct benefits such as ESA and PIP, visit gov.uk/benefits for disabled to check the criteria for PIP.

6) If you are ever struggling financially and have an emergency contact your Council who should have provisions for furniture, white goods, food bank vouchers. Ask about the discretionary fund which replaced Community Care Grants.

7) Visit your GP and don't let this illness get the better of you, maybe a referral to a MH team or a review of your current medication is needed.

8) Think about joining your local Credit Union which will give loans regardless of your credit rating and a good way to save small amounts for emergencies such as your current situation.

9) Smile and look forward knowing the fact that the stress caused by waiting for the knock on the door has now passed and you can now rest you are out of risk of harm.


10) Blank, this is where you come in and write your goals for the future to ensure this doesn't happen again.

GOOD LUCK!!!!

BigAunty

The Shelter website has information on how to deal with rent arrears, including negotiating a repayment plan with your landlord which seems to be your main option.

There is also a Debt free wanabee board on this forum where you can post a Statement of Affairs or Accounts (SOA) and the people there will tell you how they think you can cut down on living expenses and how you can manage debt.

This website also has a budget planner. Download it, work through the site to identify where to slash living expenses (cheapest energy, telecoms, tv, insurance packages, cheapest recipes, frugal shopping) so that you can build up a nest egg to protect yourself against emergencies in future - the 'Old style' board is good for ultra stingy living. MSE also has an 'up your income' board and information elsewhere on how to raise income in various ways, including ebaying unwanted stuff.

The advice about joining a Credit Union is sound - they are designed for low income customers and are a good alternative to loan sharks. Though rules vary from CU to CU, essentially, if you build up a history of saving with them, you can usually get a loan from them.

I understand the pressure you were under to settle that debt. Unfortunately, rent is a priority bill along with Council tax, for example, because the consequences are so serious - getting into rent arrears can cause homelessness while council tax arrears can lead to criminal prosecution and imprisonment.

The Direct Gov website has information about debt management, including outlining what debts must be settled as a priority, and what ones have lesser consequences if you stall on paying. This may give you an idea what bills you could postpone paying in order to make up the shortfall on rent, though do take expert advice on this, rather than escalating into further debt with other service providers, robbing Peter to pay Paul.

Also, this website has a booklet on mental health and debt which could be of use to you.

Cate1976

Well done for admitting your mistake & coming here to ask for advice. Unfortunately there are people who believe the propaganda from the condems aided by the Daily Fail that all people on means tested benefits are scroungers/lazy & don't want to work. For every scrounger there are many more who are either doing all they can to find work or have reasons that work isn't possible.

You've been given some good advice on here, one that allen35 has suggested which I think is worth asking is your local credit union, google credit union & your town. You'll probably have to have one of your benefits paid into your CU account and they'll deduct the fortnightly payment for the loan first, they do an account that gives you a card you can use at ATM's.

#5 of allen35's post is worth looking at as well.

You do come across as being well educated and I hope you're able to get this sorted soon.

SailorSam

With the introduction of Universal Credit we're going to have problems like the Op has got herself into more and more.
It's all well and good saying people should be able to budget and get use to a monthly payment but we all know from reading threads here on Mse, many will never learn. And if the rent part of any benefits they're paid goes straight to them rather than the landlord there's always going to be something more important than the rent.

BigAunty

SailorSam wrote: »

With the introduction of Universal Credit we're going to have problems like the Op has got herself into more and more.
It's all well and good saying people should be able to budget and get use to a monthly payment but we all know from reading threads here on Mse, many will never learn. And if the rent part of any benefits they're paid goes straight to them rather than the landlord there's always going to be something more important than the rent.

Probably the majority of adults of working age are in employment and the majority of employees are paid monthly. The majority of household bills are paid monthly. It's just such a common way of living.

I acknowledge the risks that you've outlined - they are real (as per this thread).

However, these arguments were put forward before the change in HB quite a few years ago when private tenants started to receive it directly instead of the landlord. The rental market did not collapse despite this switch in culture and all the alarm bells that were sounded.

I can't see why all benefit claimants have to be viewed as vulnerable and unable to manage their money. There are mechanisms in place (like direct payments to landlords for certain HB claimants).

I was alarmed to read that many social housing tenants (a large minority) don't even have a bank account. Some of the changes made in the benefit system do negatively affect some claimants who can't adjust to the change.

However, some changes have positive ones - the drive to make people responsible for their budgets, receiving benefits at the same frequency they would if they are in the position to re-enter work, the nudge to open a bank account. This is just everyday basic living and housekeeping skills, not an unusual form of punishment...

lighting_up_the_chalice

SailorSam wrote: »

With the introduction of Universal Credit we're going to have problems like the Op has got herself into more and more.
It's all well and good saying people should be able to budget and get use to a monthly payment but we all know from reading threads here on Mse, many will never learn. And if the rent part of any benefits they're paid goes straight to them rather than the landlord there's always going to be something more important than the rent.

Rent direct to tenant is already the norm with tenants in the private sector in rec't of LHA. Many predicted chaos, but that hasn't been the case. Most people have continued to manage their financial affairs without issue.

SailorSam

lighting_up_the_chalice wrote: »

Rent direct to tenant is already the norm with tenants in the private sector in rec't of LHA. Many predicted chaos, but that hasn't been the case. Most people have continued to manage their financial affairs without issue.

The Bbc said they asked Housing Associations and were told that 91% of their tenants were in arrears.

lighting_up_the_chalice

SailorSam wrote: »

The Bbc said they asked Housing Associations and were told that 91% of their tenants were in arrears.

That's nothing to do with rent direct to tenant, as with LHA. Housing Associations get the HB direct to themselves..... paid in arrears..... which may explain the 91% (even though I don't believe it... link?). We are already seeing many SH providers start to implement rent in advance.

SailorSam

Sorry haven't got a link, was on the 6 o'clock news.