Income support calculator

Locornwall

As explained in another thread, my partner and I will likely be separating soon.

I was checking what she would receive and noticed in one of the calculators it asks how much money she has earned 2014/2015. With two small children she wouldn't be able to work. I notice that if she earned money shed get no income support but if she does not she would get it. Please explain. Children are 1 and 3.

nannytone_2

income support is an out of work benefit.
you can still claim if you work under 16 hours a week, but would only receive NI credits as after a £20 disregard for lone parents, the benefit is deducted £ for £ for additional money earn.

someone earning £95 a week would lose all entitlement to income support

Locornwall

Thanks for the reply.

At the moment my partner works, however when we separate she would have to stop, as she'd have to look after the children.

Would she therefore get IS even though she has been working and earning over £95 per week?

pmlindyloo

She would be eligible for Income Support if she has a child under 5 years so when she stops working she can claim this if she fits the criteria. As it is an income based benefit any savings/capital may be taken into account - not the house she lives in.

The part on the calculator asking about 2014/2015 probably relates to tax credits. Have you been claiming tax credits?

She should make a claim for Income support, child tax credits and council tax reduction when she stops working and you move out.

Please make sure that you do not have any financial connections with her as these would be flagged up in any benefit claim and you may be questioned about your living together.

As regards your other query on the separate post, whose name is the mortgage in?

Locornwall

The mortgage is in both of our names.

We / she does not claim any tax credits at present.

Not sure what would constitute having a financial connection???

pmlindyloo

Locornwall wrote: »

The mortgage is in both of our names.

We / she does not claim any tax credits at present.

Not sure what would constitute having a financial connection???

Since you haven't been claiming tax credits then she can make a new single claim.

Support for Mortgage Interest doesn't start for 13 weeks after the date of the Income support claim so you will need to speak to your mortgage provider about this.

Since you have a joint mortgage then you are both liable for the payments. If one does not pay then the other is also liable.

Since your mortgage repayments are so high you may need to make some decisions about what is going to happen in the future particularly if your wife is eligible for SMI as it only pays the interest on the mortgage.

There is some useful information on CAB's website about ending a relationship here:

https://www.citizensadvice.org.uk/relationships/relationship-problems/ending-a-relationship-when-you-re-living-together/

which includes who to inform.

Locornwall

Ok really thanks for the above.

I'm a little worried also about the home. If I move out and she stays here, will I be able to sell it in the future? I understand SMI runs out after two years or until my youngest is 5? Will I be able to force her to sell it after that so we can split the equity?

pmlindyloo

Locornwall wrote: »

Ok really thanks for the above.

I'm a little worried also about the home. If I move out and she stays here, will I be able to sell it in the future? I understand SMI runs out after two years or until my youngest is 5? Will I be able to force her to sell it after that so we can split the equity?

To be honest a lot depends on what your mortgage provider says. Some may not be happy to have only the interest paid particularly if there is no equity in the property. If you cannot afford the mortgage and she cannot afford the mortgage then the sensible thing might be to sell the property.

What does your partner think is going to happen?

You really need to speak to your mortgage provider first and then you would have a better idea of your options.

With all separations it is better to agree things amicably or at least through a family mediator (see the CAB link). Ultimately if you can't agree then you will be paying a lot of money to solicitors to sort things out.

And to answer your specific question you would have to get your partner's agreement to sell the property and if she refused then you would have to get a court order to force the sale.

Locornwall

What factors would they take into consideration regarding selling the house? She would never be able to afford the mortgage payments.

pmlindyloo

Locornwall wrote: »

What factors would they take into consideration regarding selling the house? She would never be able to afford the mortgage payments.

But can you afford the mortgage payments?

Have you checked what child support you would be paying? Would it be possible to pay half the mortgage and balance this against child support payments?

Your ex then could claim SMI for the other half and this might keep the mortgage provider happy.

There are different possibilities but please talk to your partner and your mortgage provider first. Without this information you are just floundering in the dark.

You both need to do what is right for all of you. Your children are very young and doubtless your partner is not wanting to move out immediately and disrupt their lives.

Please find out your different options - short term and long term - and then sit down and have that talk.

nannytone_2

isnt SMI changing to a loan, repayable when the property is sold?