Borrowing while on benefits. Is this allowed?

cloudydays

alano1963 wrote: »

Sorry but I just got an email that led me to come back and whilst here I was looking at some of the comments. I have PTSD, severe social anxiety disorder, severe depression, arthritis, gout, and other health problems I will not say. When you say that your £300 is supposed to be for your disability, I never leave the house, so sitting staring at all these problems makes me ill, so in fixing them I AM using the money to help with my disability! I do not smoke. I know someone on disability who spends £80 a week of fags, nobody makes them stop smoking (nor should they as it is there own business!)! That amount would more than cover this loan payment. I don't drink, and as I can't leave the house I never go out so don't have those costs either. People have a million different disabilities and a million DIFFERENT needs. Nobody should be judging anyone.

I totally agree with you. People spend their disability benefit however they see fit, after all it is their benefit. Personally, as a couple we spend my husband's disability benefit on paying tradesmen to do work around the house, on jobs that my husband is no longer able to do. Even paying for a gardener, a window cleaner, sometimes needing a plumber and so it goes on. We saved for a few months just recently to have painters and decorators in. Like you, we are homeowners, we don't go out, we don't drink or smoke.

Someone pointed out their disabled friend saves up to go on cruises, lovely and their choice, but that disabled person lives with parents and doesn't have the same outgoings as a homeowner.

OP, it has been suggested that you save up rather than take out a large loan. Of course those jobs in the house will take longer to complete, but you won't have the burden of those monthly repayments and all that interest to pay. As long as you keep receipts for the work done, you won't need to worry about it affecting your benefits.

NYM

I see the OP has had a reply regarding the treatment of the loan (on yourable.com)

Monies that are to be used exclusively to repair or improve the home can be disregarded as capital for 26 weeks, or longer if the DM agrees.

Money which a person gets to repair or improve the home

The law

52548 Money which a person gets to pay for essential repairs to or to improve the home is disregarded to give time for the work to be done if as a condition of getting the money it has to be used to pay for those repairs and improvements and the person is going to use the money to pay for that work.


The period of disregard is 26 weeks or longer if it is reasonable from the date the money is acquired.

Note: The money can be a loan, grant or gift. The condition that it has to be used for the repairs and improvements does not have to be in writing.

Essential repairs and improvements

52549 Essential repairs and improvements are those which are needed to make the home fit to live in by the person or a member of the person's family. For example, if the roof of the home is letting in water it is essential to repair the roof to make the home fit to live in.

It's always a good idea to run your proposal past the DWP first though, to make sure that they will disregard the loan.

If you truly believe your income and expenditure is unlikely to change during the 5 years of the loan, then take it. If circumstances do change for the worse, you'll at least have an upgraded property that could be sold to pay off any outstanding balance.