What would I be entitled to (if anything)?

M0ney

Hi,

My employer is currently looking at who will be keeping their job and who won't be....

I'm just looking to find out what I will be able to claim for and what I might get if I'm one who's not so lucky and can't find a new job straight away. I have worked for this employer for just over 18 months and their redundancy package is in line with government requirements.

My assets;

House value £110,000
Flat value £90,000
Savings £1,000 - £2,000 (if made redundant)

Liabilities;
House mortgage £104,500 @ £573/month (sadly we just committed to buying this house 3 weeks ago before it became apparent my job was at risk).
Flat mortgage £59,200 @ £648/month (tenant currently paying £450/month)
Credit card debt £480 (0% for around another 12months)

My current salary is £55,000, I have a partner who is a SAHM with 2 children both under 3.

p00hsticks

Assuming that you have made sufficient NI contributions you'll be entitled to six months contributions based JSA (currently they look at NI contributions in tax year 2012-13 and 2013-14, this will change at the start of January to 2013-14 and 2014-15). This is £73.10 a week and you'll be obliged to go to the jobcentre regularly to sign on and show you are looking for work.

You'll also get £20.70 + £13.70 Child Benefit.

Other benefits such as Child Tax Credit, Council Tax Reduction are means tested and I suspect that the rental income you're receiving will be taken into account.
Your outgoings aren't taken into account for such means testing - just your income.

You might be better posting over on the benefits board, as there are some benefit experts over there but I'm not sure they frequent this board.

M0ney

Thanks for that, as my partner has not been employed for around 3 years (not having paid NI) would that exclude her from becoming a job seeker and hence receiving the benefit?

p00hsticks

M0ney wrote: »

Thanks for that, as my partner has not been employed for around 3 years (not having paid NI) would that exclude her from becoming a job seeker and hence receiving the benefit?

I'm not sure - there is nothing to stop her registering at the JobCentre to look for jobs, but from the sound of it she won't be entitled to contributions based JSA as she doesn't have the necessary NI record (you can't just transfer your entitlement to her). They'd look at her circumstances to consider her for income based (Means tested) JSA, but that would take into consideration any income from both you and her, and as I said earlier I think that will include the rental income from the flat, which might preclude her from receiving any money.

BigAunty

Liabilities - your debts and outgoings, simply don't factor into benefit entitlements at all but perhaps you indicated this to give an idea of your capital.

Benefits are typically calculated on contributions (contributions based JSA, for example), income (tax credits) and income/capital (means tested benefits like council tax reduction and income based JSA).

For the means tested benefits like council tax reduction, capital (which I believe includes the equity in the second property) of up to 6k reduces it while capital of 16k and over rules it out.

If you are at risk of mortgage arrears or repossession, look at the Shelter website which has an excellent section for distressed home owners. It will also outline the government's Support for Mortgage Interest scheme, including eligibility.

Pop over to the debt free wanabee board and the members there may be able to come up with a strategy to deal with your credit card debt as obviously your mortgage will be your priority debt. They can also review your statement of affairs and suggest ways for you to slash outgoings. You could also download the budget planner on MSE, work through the site and work out how to reduce your outgoings, too.

Hopefully you will get another job soon but you are potentially moving from a net income of around 3k a month to a level of income from your buy to let property and benefits that won't even cover your basic accommodation costs for those properties (mortgages and council tax).

There is a benefit calculator at the Turn2us website that will help you understand your entitlements. The benefit board is the best location for specific queries on this topic.

HappyMJ

M0ney wrote: »

Hi,

My employer is currently looking at who will be keeping their job and who won't be....

I'm just looking to find out what I will be able to claim for and what I might get if I'm one who's not so lucky and can't find a new job straight away. I have worked for this employer for just over 18 months and their redundancy package is in line with government requirements.

My assets;

House value £110,000
Flat value £90,000
Savings £1,000 - £2,000 (if made redundant)

Liabilities;
House mortgage £104,500 @ £573/month (sadly we just committed to buying this house 3 weeks ago before it became apparent my job was at risk).
Flat mortgage £59,200 @ £648/month (tenant currently paying £450/month)
Credit card debt £480 (0% for around another 12months)

My current salary is £55,000, I have a partner who is a SAHM with 2 children both under 3.

You would be entitled to contributions based benefits only. You can get 26 weeks of contributions based JSA. If you are 25 or over you'll get £73.10 a week. Your partner not having worked will not be entitled to anything. You will not be entitled to claim income based JSA.

I know it sounds like financial suicide but you are supposed to use the £450 you get each month in rental income to support yourself and not pay the mortgage on either your flat or your house. You could if you don't wish to destroy your credit rating use the available credit on your credit card to make the mortgage repayments. You may also have overdrafts you can use too.

As you can work out getting a job ASAP will be very important to avoid any long term affect to you, your family and your credit rating.

M0ney

Thanks everyone for the input, yous have pretty much confirmed what I already knew I am over 25. If I hadn't been would I have been left to starve? (Tongue and cheek).

p00hsticks

M0ney wrote: »

Thanks everyone for the input, yous have pretty much confirmed what I already knew I am over 25. If I hadn't been would I have been left to starve? (Tongue and cheek).

You'd get £59.20 contributions based JSA if you were under 25 - it's if you were under 18 you'd be left to starve (Tongue in cheek).

lisyloo

sadly we just committed to buying this house

What do you meanby committed?
Have you exchanged contracts or do you mean you've had an offer accepted. This is really important so please come back.

as my partner has not been employed for around 3 years (not having paid NI) would that exclude her from becoming a job seeker and hence receiving the benefit?

To get JSA you have to be available for work. Do you have other financially viable arrangements for the 2 children? If your partner looks after the children full time then they can't be available for work can they?

M0ney

Hi there, the offer on the house has been accepted.

But there is good news I have been given at least 4-6 months work (possibly longer).

We have said that in the event of the worst happening she may find a part time job in the evening my Mum or other family members would babysit if needed. This will only become an option after we move into our house since we're currently 35 miles from my Mum but we'll be 8 miles away after we move.

marlot

M0ney wrote: »

Hi there, the offer on the house has been accepted....

If it's only at offer stage, you can pull out.

Only when you've exchanged contracts do you have to buy.