Stuck between a rock and hard place.

hello007007

Hello,

Hubby is getting medical redundancy to the tune of around £20,000. His health is poor so it doesn't look like he will be a le to work for the next for years, as such the redundancy money will not last long as we are a family of 6.

We live in a small 3 bed house - 1 bedroom is a small box room. It was meant to be a temporary move 14 years ago until we found a forever house. Since then I have had issues and we became a 1 income family, 10 odd years ago and now this.

Someone I know has had the loft conversion to the tune of £30,000. Now with the redundancy money and a family loan we can get our loft converted into bedrooms. If we get the loft is done the stress levels in the house will reduce and it was help greatly eg we dont have room for a bed for our 2 year old so she is sleeping with us- if things carry on like this she could be in our bed when she is 10!

The thing is because of the redundancy lump sum, we will not be entitled to something to live off such as income support or the like. My understanding is we have to live off the redundancy until its all used up and them claim a benefit. If that's the case we can't get the loft done. Does that make sense?

Can someone tell me if at all it is possible we can get the loft converted as we will soon have about £20k in the bank.

cattie

You can still claim benefits, probably UC, but the following will apply, Any capital/ savings you have between £6,000 and £16,000 is treated as if it gives you a monthly income of £4.35 for each £250, or part of £250, regardless of whether it does or not.  However, money you spend on essential home improvements shouldn't be taken into account when working out finances, so I think spending cash on a loft conversion wouldn't be considered a deliberate deprivation of assetts by the DWP as it's something that you really need as a family.

Does  your husband claim PIP? If not put in an application, but get help from a welfare rights specialist to fill out the forms, or look at the comprehensive advice regarding making a successful claim on benefits & work website for invaluable advice on filling out benefit application forms. https://www.benefitsandwork.co.uk/  If he makes a successful claim you may then be able to claim carer's allowance for looking after him. PIP is disgregarded as income as far as other benefits are concerned.

Xbigman

Post this question on the benefits board. It really isn't a redundancy question. In certain circumstances you can spend the money on home improvements and still claim UC. You'll get much more accurate advice on the benefits board. 
Also be aware that you might need planning permission for a loft conversion.

Darren

hello007007

Xbigman said:

Post this question on the benefits board. It really isn't a redundancy question. In certain circumstances you can spend the money on home improvements and still claim UC. You'll get much more accurate advice on the benefits board. 
Also be aware that you might need planning permission for a loft conversion.

Darren

Hello,

thank you for the advice but I dont know how to move the thread?

hello007007

@cattie

Thank you for the reply. I am on PIP so I have been told we will be on income support not UC.

The problem is with £20k sitting in the bank until the weather improves and loft is started we won't have enough to live off without somethong come in every month like the income support. If we don't get the income support now we will use up the lump sum and therefore will not have the money to do the loft in 5-6 months when the weather is better. I hope this makes sense.

We have started a claim for PIP for him, fingers crossed.

poppy12345

hello007007 said:

@cattie

Thank you for the reply. I am on PIP so I have been told we will be on income support not UC.

Who ever told you that is not exactly correct. Unless you're claiming a severe disability premium in another benefit (which is unlikely) then you won't be able to claim Income Support because it no longer exists.

Your partner could claim New style ESA because you said his health is poor. It is based on NI contributions from working in the previous 2 tax years. This pays £74.35 per week and he will need a fit note from his GP. https://www.gov.uk/guidance/new-style-employment-and-support-allowance#how-to-apply

With savings of more than £16,000 you will not be able to claim any means tested benefits, even if the money you have is to pay for work to be on your house. Once the money goes below £16,000 then you will be able to claim for UC. Spending the money on house improvements is unlikely to be classed as deprivation of capital but it's unlikely that you will be able to get the work done quickly, so it's a catch 22 situation.

Once you claim UC in the future then the money received from the New style ESA will be deducted in full from any UC entitlement.

Xbigman

A moderator can move your post or you can take the most direct route and just start a new thread on the benefits board.


Darren

poppy12345

Xbigman said:

A moderator can move your post or you can take the most direct route and just start a new thread on the benefits board.


Darren

I answered the question in my previous comment. Regardless of where they post the question, if you have savings of more than £16,000 you're excluded from all means tested benefits, regardless of wanting to use the money for home improvements. The only thing that's not considered deprivation of capital for UC purposes is paying off debt.