ALL benefits stopped. Now what?

HappyMJ

I have just recently moved into a new house (rented) and started living with someone who was previously on benefits...employment and support allowance, housing benefit, council tax reduction, free prescriptions/dental/eye tests and warm home discount. It was all worth around £12,000 per year....

I don't claim any benefits as I am not entitled due to owning a property which is let out. I get after fees/taxes/expenses etc about £500 per month from the property and the equity I have in it far exceeds the £16k limit. I don't work and am not seeking work. Even though that's my only official income I am financially OK even though my own personal finances look like a disaster waiting to happen when written down.

Yesterday she got final confirmation from all the different departments that she is entitled to nothing at all and she was in tears. Never seen her so upset before. She stated last night she does not want to be supported by me at all as we've only been in a relationship for just a few months and it's not fair that I should be lumbered with looking after her. I disagree. We moved in together quicker than I would have done in normal circumstances as she was being evicted due to rent arrears and would have been homeless very shortly. She has a private pension of £135 per month and that's it.

She has some quite serious levels of debts as opposed to her ability to service them. I've helped her cut her personal expenses right down to the bone by getting her out of her awful rental property saving £350 per month, paying the council tax for her saving £63 per month, cancelling her life insurance saving £11 per month, sending the TV she had on HP back saving £30 per month, cancelling the TV licence saving £24 per month (she was paying weekly), switching to a contract mobile costing £12 per month saving £18 per month, switching to a gas/elec supplier and paying by direct debit and splitting it with me saving £60 per month, cooking home made food and splitting the cost 70/30 with me saving around £150 per month and cancelling debt repayments of £100 per month. Her personal bare essential expenses have been reduced from around £1,000 per month down to £135 per month exactly the same as her pension. She has no spare money of her own to service the debts she brought into the relationship.

She has rent arrears of £1,800, DWP debt of some unknown figure guessing around £1,500 maybe more, previous property gas/elec outstanding bills of around £400, a mobile bill with EE taken out fraudulently by her previous partner but not reported immediately she became aware of it, so she became liable for it, of £250. I think there are more...

She cannot work...what's the answer?

Savingdad

No idea as my partner has not had anything other than what I can spare from my wages after paying the household bills.
She could work but that would mean paying all her earnings plus some if mine in childcare costs and our son not having either parent around...
I don't earn a lot, less than the average wage but still pay full mo rgage, council tax, insurances and so on.

[Deleted User]

You don't work and are not looking for work. She cannot work but doesn't want to depend on you. You need marital rather than financial advice.

HappyMJ

ciaccino wrote: »

You don't work and are not looking for work. She cannot work but doesn't want to depend on you. You need marital rather than financial advice.

We're not married. She'll just have to come to terms that I will be paying the ongoing bills. It's just a big change for her she'll get used to it. I have just enough income to do that but I cannot pay for her previous debts without going further into debt myself. I was thinking of a DMP but I'd doubt they'd get anything at all. It would take decades to repay at £1 per month..she's 15 years away from pension age and she'd still have this. I could say ignore the debts for 6 years and it'll all go away but they could go for a CCJ just before the 6 years runs out and that'll add another 6 years before it's written off. Are there any other solutions?

Bambywamby

She could make extra money selling on Ebay, selling on Amazon, filling in online surveys etc. It probably won't be a lot of money but will all help. Look at the Boost Your Income threads on this forum.


http://forums.moneysavingexpert.com/forumdisplay.php?f=145

Ilona

The answer is for you to get a job and support your new partner. Or maybe you have enough from your unofficial income to keep her.
Ilona

HappyMJ

Ilona wrote: »

The answer is for you to get a job and support your new partner. Or maybe you have enough from your unofficial income to keep her.
Ilona

That does look like the obvious answer. It's a complex problem that I'd rather not get into too much detail on here but basically I can't work and yes I have enough "unofficial income" to "keep" her but I can't pay for her outstanding debts.

andyfromotley

Why cant she work?

What is 'unofficial' income? Don't tell me its income you are not declaring.

Ilona

Well if you're not giving us the whole story then you can't expect a constructive answer. You moved a woman into your house, getting rid of most of her outgoings so she can't get any benefits now. You have taken on that responsibility so you must now provide the missing benefits. There might not be enough in the pot to pay off her debts, so you must look into this and work out a dmp, either self managed or through a charity like Stepchange.

You must decide if this is to be a permanent partnership where you pool all your resources together, or if you are to keep your finances separate.
Ilona

HappyMJ

andyfromotley wrote: »

Why cant she work?

What is 'unofficial' income? Don't tell me its income you are not declaring.

Why? She's on employment and support allowance. She is not well. She takes several tablets per day and has weekly appointments with different hospitals, GP's and clinics. She wouldn't be able to hold down a job taking a random half or full day off every week to attend these appointments. She's signed off sick and now claims "credits only" ESA to keep her NI contributions up to date. She could take a part time job if the employer was flexible enough. She's not found one of them yet.

Unofficial income is some matched betting profits. No need to declare that. Don't worry it's all OK. I don't make massive amounts but I make more than I'd take home from a job. I also have personal loans in my name which I'm making payments of £737 per month which takes a big chunk out of the profits. I use a 0% on spending credit card to meet the shortfall and stooze it so it might take about 6-8 years or so for me personally to be debt free but I can just about manage it.

merlin68

Are you not claiming child benefit and child tax credit? that would be worth £84 a week. cut of for ctc is £26000 a year for one child.You can claim free health costs up to an income of 16k just need an hc1 form to fill in,has she looked into claiming pip?
I suggest she does a debt relief order.