DLA question

squibbs25

My mum and stepdad are in servere financial difficulties, stepdad is disabled and claims DLA.
He has just ordered a mobility car (11 weeks to go for delivery), i was wondering if mum and stepdad were to go on an IVA, would his DLA be classed as income. Mum reiceves state pension (£68 pw) Stepdad recieves £145 pw (not sure if pension or IS).
ALso if the DLA is not taken into consideration, would entering a IVA hinder them getting the car?

Hope that makes sense.

TIA, if anyone can answer.

Squibbs

emilyt

Sorry what is an IVA

[Deleted User]

I cant think of any circumstances where DLA would be classed as income,personally im not sure that i would be ordering a motorbility car if i was in financial difficulties as that would mean losing the entire mobility component of the DLA,plus feeding the thing with petrol,so at least £60 per week and thats not using it that much.

squibbs25

They already have a car which they are selling.
The mobility car is a lower engine size and will cost less to run than the car they have now.

ShockingPink

Motability really isn't the most cost-effective way to get a car. It generally works out much cheaper to buy one, as Motability can take up your entire mobility allowance, and if that ceases for whatever reason, you're left without a car (my mum had my dad's car taken from her a week after he died, leaving her in dire straits). If your parents can possibly manage it, they should use their DLA to buy a car. Don't forget they'll qualify for free Road Tax too.

I'm pretty sure DLA is always disregarded in income calculations, so that's some good news!

donnalove

emilyt wrote: »

Sorry what is an IVA

its an individual voluntary arrangement with creditors

they wanted to take our daughters dla as income when we did our iva i argued strongly about this but they were adamant, so i had to increase my budget to match her costs to compensate.( we were not getting dla for her when we started iva)

so my advice would be to list all the extra costs involved with your father to eat up the dla benefit.

donna

Ames

I'm not sure about an IVA but with bankruptcy I was told that they take it into account, but will also allow the same amount in care needs, so I was just to put down dla in income and then care needs equalling the same amount in expenditure.

I understand about the car, when I was in financial difficulties I had to get one so that I could release the cash in my old car. I do worry about what I'll do if my dla is taken away, but in the meantime it's costing me less on motability than it was to run a car including MOT's, insurance, AA etc.

Scarlett.1974

I'm sure someone will correct me if I'm wrong, but I don't think you can enter into an IVA if you're not working (sorry if I'm assuming this incorrectly) and they (if they're doing it jointly) would need to be able to pay in a minimum of £300 per month between them.

IVAs really aren't for everyone. I would suggest you post this on the DFW board too A DMP might be a better option for them. I would also advise they (or you) contact CCCS for free, completely impartial advice.

Good luck.

squibbs25

Thanks for all the comments so far. Ames, you're right, they are selling the car because it is more cost effective for the exact reasons you point out.

This is new teritarty (sp) for me, i knew nothing about IVA's and DMP's til i found this site.
I have posted on the debt free board, they're great over there, my main query on here was if the DLA is taken as an income.

I will be getting in touch with cccs tomorrow (on their behalf) and see if they can help.

Thank you.

Squibbs

nosnam

dla is not means tested so is not classed as income.

Ani-Mate_67

DLA is not counted as income as far as other benefits are concerned but an IVA is entirely different. DLA is disregarded for benefits because you are supposed to use it to buy care or pay to get around (depending on what it was awarded for) although we all know that it just goes into the weekly budget. An 'IVA' would possibly say that as your Mum can care for your Dad the care part of the benefit can be considered as income. As Donna love says you could just list costs related to Dad's disability that add up to more than the care element of DLA and then you don't need to worry.