DRO Income change

KD001

 I wonder if anyone could give me advice or experience. I am a few months into a DRO. I am a carer and have just been made redundant.

 I made an old carers allowance application back in May 2024 but I spoke with carers allowance advisor requesting that they put it on hold. We agreed that once my contract end date was given I would send them my redundancy letter and p45. My average income has been just under £500 last few months.

Anyway I just checked my bank account and there is £1000 back-dated from carers allowance. 

I just received a letter say the money is for the weeks I was entitled to up until August 2024.

I also had £300 back dated from the council for payment of my autistic child's school transport fare as the council had not paid it for 1 year.  

 I am very worried if this would affect my DRO! I was not expecting carers allowance back dated. 

*The letter from Dro said inform if your income increases. Do I need to declare this money? Thinking ahead as I am  unemployed. I have my final salary coming end of September which is about £350 and my basic redundancy pay £407. This is all very low income. 

The only income I will have is carers allowance. I can not apply for universal credit as my partner is away. He works hard and doesn't want any benefits. He says he won't let anyone force him to apply for benefits. He thinks UC treat people horrible when they apply for benefit. He refuses to apply and i can't apply for universal credit without him also applying. ( this rule could leave many women vulnerable in relationship, in my opinion)

He has reassured me that he will cover my shortfall in contribution to the house due to not working until I find another job. My wage was so low anyway as I worked 2 days a week due to being a Carer for my child.  He says a little overtime on his end can make up the difference in my income shortfall.

I don't want my DRO revoked for these unexpected lump sums. Very stressed thinking about it today. I was just starting to feel hopeful about the future and being debt free one day soon. 

Thanks so much for any advice.

Brie

Interesting question about how the lumpsums will be viewed.  I would "think" that it will be averaged but am not sure.

Interesting too about not applying for UC and how that leaves women vulnerable.  I quite get his opinion about the way DWP treats applicants.  Perhaps you could look at "entitledto" to see if you would actually get anything with his income.  You on your own would certainly by eligible for job seekers - not sure it that has been bundled in with UC these days but there must be a way for you to apply as an individual in any case.  

Wondering also you situation as a carer.  Were you being paid to be a carer?  In which case how are you eligible for carer's allowance?  And if you've been made redundant how can you claim going forward.  I'm sure there's a simple explanation and I'm just missing the point.

KD001

Brie said:

Interesting question about how the lumpsums will be viewed.  I would "think" that it will be averaged but am not sure.

Interesting too about not applying for UC and how that leaves women vulnerable.  I quite get his opinion about the way DWP treats applicants.  Perhaps you could look at "entitledto" to see if you would actually get anything with his income.  You on your own would certainly by eligible for job seekers - not sure it that has been bundled in with UC these days but there must be a way for you to apply as an individual in any case.  

Wondering also you situation as a carer.  Were you being paid to be a carer?  In which case how are you eligible for carer's allowance?  And if you've been made redundant how can you claim going forward.  I'm sure there's a simple explanation and I'm just missing the point.

Thanks for taking the time and responding.
I was not being paid for caring for my son. 
I did work part-time for an employer but just got made redundant. 
When i spoke with carers allowance advisor months ago.  They said that because i care for my son over 35 hours a week, i could be eligible.  They would just have to make sure my income was below £150 per week and( it has been). 

sourcrates

Well you are allowed £2000 in assets (cash) whilst in a DRO, a £1000 lump sum benefit back payment is below the 2k allowance, I can`t find the guidance but as far as I am aware you only need report payments over the £2000 limit.

Brie

Do you know how much redundancy payment you might get from your ex employer?

KD001

sourcrates said:

Well you are allowed £2000 in assets (cash) whilst in a DRO, a £1000 lump sum benefit back payment is below the 2k allowance, I can`t find the guidance but as far as I am aware you only need report payments over the £2000 limit.

Thanks. Right... OK.  Because I don't have any other assets. I am unemployed.  That carers allowance back pay will be going on my contributions to bills etc for the next few months until I can get another part time role.
Just need to make it through this moratorium period.  My income has actually decreased since DRO was approved. 
Can DRO force my partner to do the application for Universal credit.  Will they penalise me?

KD001

Brie said:

Do you know how much redundancy payment you might get from your ex employer?

My final paycheck is around £350. It should come end of September.
My redundancy pay is £407. Could I apply for job seekers as a single person without my partners input? Thanks. 

ManyWays

What monthly income was put on your DRO application? 

KD001

ManyWays said:

What monthly income was put on your DRO application? 

720 per month from employment.plus child benefit and child gets DLA.
However,  now I'm recently redundant. income will.bw Carers allowance , child benefit and DLA 

ManyWays

It looks like your income plus redundancy pay this month will be much the same as the income on your DRO application, so that shouldn't be a problem. And the £1300 in two lots of backpayments is less than the £2000 assets allowed. So I would hope it will all be fine but talk to the adviser that set up your DRO to get this confirmed.

sourcrates

KD001 said:

sourcrates said:

Well you are allowed £2000 in assets (cash) whilst in a DRO, a £1000 lump sum benefit back payment is below the 2k allowance, I can`t find the guidance but as far as I am aware you only need report payments over the £2000 limit.

Can DRO force my partner to do the application for Universal credit.  Will they penalise me?

The insolvency service has no further input or interest in you unless you contact them to tell them of a change.

There is no mechanism to penalise you for not applying for benefits, in the same way that you can`t be arrested for not committing murder, your overthinking this somewhat.