Bigger bills less financial support.

chellii

Hi, 
I started my claim for UC when this started in march I received a payment in may, I was eligible for the grant and was paid in may canceling out my June UC, which I was aware that was happening, I applied for help from the discretionary housing benefit as my claim for UC doesn't cover my full rent as I have 2spare rooms since my kids moved out some years ago, I had received discretionary housing benefit before this virus happened and they helped me with a payment of £30 a week, this stopped before the last 2 payments were made as it was paid along with the bit of housing benefit I received, due to low income, 
At this time claiming UC I'm in receipt of less income social distancing is preventing me returning to work, I was awarded £409 standard allowance and £281 housing entitlement my rent is paid to a housing association which has communal heating so I need to be paying them £184 out of my UC which is further reduced by £64 a month paying the advance I received, which leaves me with the grand total of £160, I've been awarded discretionary housing benefit but it's for £53.98 a Month £66 a month than before when I was earning more than now, on top of that I have received a council tax bill without the discounts I have been getting for about 2yrs so my bill has now trippled and they want £84 a month which leaves me a total of about £130; for other bills and food doesn't even come into the equation, I don't drink or go out, I declared that I spent £50 a month on personal things on my discretionary housing application I didnt realise that I wasn't entitled to use what £12 a week on myself, well i have 4 grandkids, so it goes there, 
I have no where to turn I have been self employed for about 10 yrs and have always had enough to make ends meet with a little help once or twice, but thing's the way they are I feel I'm sinking in to a black hole and it's just getting deeper and deeper and even when I can return to work I will be stuck in the hole of debts, I feel I may as well stay in the hole and fill it in. 

poppy12345

You say you can't return to work because of social distancing, what is your job?

The bedroom tax will reduce your housing element by 25% because you have 2 spare bedrooms, that's quite a big reduction.

You need to contact your local council regarding your council tax, that seems like rather a large amount to have to pay for someone on low income. Although all local councils have their own criteria. You could also use a benefits calculator and it will tell you how much you're entitled to.

UC isn't great for those that are self employed and you may have more problems when the minimum income floor returns in either October or November. See link. https://www.citizensadvice.org.uk/benefits/universal-credit/on-universal-credit/how-the-minimum-income-floor-works-if-youre-self-employed/

Are you able to reduce your bills at all? I'd advise you to make a list of everything you pay to see if you can reduce them.

Other than that, i'm not sure what else you can do, other than to look for a job as PAYE if you're not able to return to being self employed.

Also to add that the standard allowance of UC will reduce by about £80 from April 2021. At the moment it's increased because of Covid19.

Grumpy_chap

Hello Chellii,
That is a long post and hard to follow.

What type of self-employment do you do?  Is there a way to adapt the offering so you can carry on?

If you are still impacted by coronavirus in the middle of July onwards, you may qualify for the second SEISS grant.

I assume you don't have business premises.

You may be eligible for BBLS, which could help in the short term but will need to be paid back.

Have you taken advantage of tax deferrals and loan payment holidays?

ToxicWomble

Please take this in a constructive  way which is the way it is intended - but it sounds like you need to find new ways to earn money.
It sounds as thou your current method isn’t really working, have you looked at a change or career or taking on an additional part-time job to help make ends meet ?

diggingdude

Take in 2 lodgers in your spare rooms?

poppy12345

Info here regarding lodgers and UC https://www.entitledto.co.uk/help/Universal-Credit-Sub-Tenants

Also the OP needs to be aware that if they took on a lodger they would lose the single person discount in their council tax.

Grumpy_chap

It would be good if the OP explained what work she does and why she can't do that at all because of social distancing.  

The OP could also benefit by preparing a SoA (Statement of Affairs) to see exactly what is coming in and going out.  If that does not directly help the OP, then sharing via the DFW forum may give some helpful ideas.