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Caught in a loophole - No solution??

Andy306
Posts: 4 Newbie
Hi all,
I moved into rented accommodation with my girlfriend who has mental health issues and her two disabled children in September 2016.
For most of this time, I was in full-time employment. However, at the beginning of this month I surrendered that it wasn't possible (nearing a breakdown from exhaustion) and left work in order to register as a carer and be on the benefits system.
I have now found that I may be in a loophole outside of the system and not entitled to the benefits that I will be reliant on.
I understand that there is a savings threshold of £6,000 - £16,000.
I currently have £25,000 in savings. HOWEVER, I have to pay a £12,000 annual rent bill in 2 months, which I have been saving for.
In effect, £12,000 of this money isn't mine. I had to agree to pay rent annually to get the house, as my earnings weren't high enough and I didn't have a guarantor.
My savings are a result of a life of hard-work, and is to set the children up for the future. I couldn't bear to live off of them with no income until they are diminished, before I can get an income.
Is there any way of declaring the income and that it is put aside for upcoming payment?
Is there any way to rid the excess without falling under "Deprivation of Capital".
Any ideas would be greatly appreciated. Thank you
I moved into rented accommodation with my girlfriend who has mental health issues and her two disabled children in September 2016.
For most of this time, I was in full-time employment. However, at the beginning of this month I surrendered that it wasn't possible (nearing a breakdown from exhaustion) and left work in order to register as a carer and be on the benefits system.
I have now found that I may be in a loophole outside of the system and not entitled to the benefits that I will be reliant on.
I understand that there is a savings threshold of £6,000 - £16,000.
I currently have £25,000 in savings. HOWEVER, I have to pay a £12,000 annual rent bill in 2 months, which I have been saving for.
In effect, £12,000 of this money isn't mine. I had to agree to pay rent annually to get the house, as my earnings weren't high enough and I didn't have a guarantor.
My savings are a result of a life of hard-work, and is to set the children up for the future. I couldn't bear to live off of them with no income until they are diminished, before I can get an income.
Is there any way of declaring the income and that it is put aside for upcoming payment?
Is there any way to rid the excess without falling under "Deprivation of Capital".
Any ideas would be greatly appreciated. Thank you
0
Comments
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pay the rent now?0
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what benefits are you looking to claim? Carers, child benefit and child tax credits are not means tested0
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It's not a loophole in the system, just a limit to how much capital you can have if wanting to claim Income Related benefits. There will always be individual circumstances which have a negative effect on entitlement. As glentoran has suggested, look into paying the annual rent now - just make sure you get a receipt.
If you are going to claim Income Related benefits such as Income Support as a Carer, it is likely they will want to see bank statements for the last 6 months. It is vitally important that you can show the reason for any major expenditure which has resulted in capital falling to a figure below the maximum permitted.0 -
But that creates the same problem next year. They will be trying to save up a years worth of rent with savings of 13k already. This really needs sorting out long term. I assume the rent is paid in advance. So after paying the next 12 months surely the Land lord would then accept monthly payments so you are always 12 months in advance?
How that situation would be treated by the various benefits agencies is beyond my knowledge but seems the logical way forward.
DarrenXbigman's guide to a happy life.
Eat properly
Sleep properly
Save some money0 -
Unfortunately, there's another complication that I left out of the above for simplicity.
I was told a couple of days ago that the landlord needs the property back, so I can't pay him upfront.
I will be looking for a new place immediately, to move in September.
As I will still be unable to have a guarantor, and most places in my area don't like leasing to people on benefits, I'd expect to pay a year up front again, probably a similar amount0 -
I'm specifically referring to Housing Benefit and Council Tax reduction, which will be the main thing that I'll be relying on0
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XBigman -"But that creates the same problem next year. They will be trying to save up a years worth of rent with savings of 13k already. This really needs sorting out long term. I assume the rent is paid in advance. So after paying the next 12 months surely the Land lord would then accept monthly payments so you are always 12 months in advance?
How that situation would be treated by the various benefits agencies is beyond my knowledge but seems the logical way forward."
Unfortunately, I cannot change the contract type without having a guarantor (which I don't) or adding £10k onto my salary (obviously out the window now).
I now have to move to a new house but will expect the situation to be similar0 -
I'd expect to pay a year up front again, probably a similar amount
If you have paid upfront then a HB claim may not be straightforward (as when you make the claim for HB no rent is then due).
Hopefully HBO or CIS may be able to post on here to clarify your situation.
But I would certainly check this out - possibly with CAB / Shelter / or your LA.Alice Holt Forest situated some 4 miles south of Farnham forms the most northerly gateway to the South Downs National Park.0 -
When i had tenants who wouldn't pass credit/affordability checks, as they were a retired couple moving back to the UK, they were made to pay rent up front (by the agent), 6 months i think, but after that it just rolled on month by month. Are you sure you were going to be expected to pay another year up front on the existing property? Worth asking the question when looking for new properties.0
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So, to clarify, are you hoping to be able to pay rent upfront then claim housing benefit to replace the money you've paid? Because I don't think that's going to happen. You may need to find a property that will accept housing benefit payments month by month. Your savings will prevent you from getting the benefit immediately to my knowledge, you'd be expected to pay your own rent until you are below the threshold (I believe it's £6k for housing benefit but do check this.)0
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