POVERTY TRAP, can' pay rent.t

[Norfolkmouse]

After finding my rent/rates D/D suddenly increased over threefold and any benifits I had stopped, I spoke to an accountant friend, he spent three hours going through my paperwork and ringing Council, Pension service, Tax office etc., with the final conclusion which I now understand, I am in what is called a poverty trap and there is not a damn thing I can do about it other than commit a crime. This is the basics which I have published in the hope that someone can offer a way out. If I could tell the private pension Company to keep their pension, I don't want it, I would be back on an even keel. Every outgoing is by direct debit and except for three small ones, club membership, health membership and charity donation in total £19 and for essentials that cannot be stopped...phone, electric, rent, rates, insurances, etc.

 

I'm 71 yr old pensioner, and was coping quite adequately & managing to

run small car on my state pension and a small private pension that I (Silly Me)

opted to have paid annually. I have no savings etc. so I was provided with

benifits such as housing and housing tax & was able to manage quite well. Until evidently there was a change in April and I suddenly found that all my benifits had stopped and I needed to find a further £150 per month for outgoings. I tried to find out why by attending CAB, Age, Council only to become more confused so sought the help of an accountant friend who went into it in depth. It would appear that changes in April meant that S/pension increased slightly, which affected tax paid on private pension which in turn slightly increased that pension putting my total earnings just over the Gov. threshhold (thats how I understand it) I am told that on paper I have an increase of £9 per week. (WOW) in fact I now have to find from nowhere, an extra £150 per month to cover committed outgoings caused by the resultant increases in Council payments. Council D/D jumped from £114 total to £246 + Council tax overnight. I am now overdrawn with my bank by £400. and have absolutely no way of paying the next d/d which is council rent/rates etc.and will rapidly find myself deeper and deeper in debt until I lose my home, because I was stupid enough to pay for a private pension all those years ago and opt for it to be paid annually. I could have spent a lump sum or saved it without consequence. CAN ANYONE HELP? Can I change way in which private pension is paid? Any suggestions, I live on the 10th. floor, would be appreciated.

[phoenix11]

Hi Norfolkmouse - I'm sorry that I have no idea how to help at all if you've already tried the CAB and Age Concern.

 

Is it worth going back to Age Concern to ask for help?

 

This thread may be better in one of the other sub-forums (eg the Debt one) as it's not just the rent and council tax which will be a problem for you.

 

Just a few practicalities - have you got the best possible gas and electricity tarrifs? Some will provide lower rates for pensioners who are struggling. Also, some utilities (including water companies) offer a one-off payment to help out with debt - it's a charity type thing.

 

May be worth talking to your utility companies to see if anyone does operate such a scheme to help with the immediate problems.

 

It's easy to type this here, but please hang in there and try not to become too demoralised. There's a lot of help to be found on this and on other forums such as Money Saving Expert.

[phoenix11]

If no-one else comments on the pension issue, I think you need to contact them yourself to find out, but also ask your accountant if any pension changes will make a difference to your benefit entitlements.

[Norfolkmouse]

Hi Norfolkmouse - I'm sorry that I have no idea how to help at all if you've already tried the CAB and Age Concern.

 

Is it worth going back to Age Concern to ask for help?

 

This thread may be better in one of the other sub-forums (eg the Debt one) as it's not just the rent and council tax which will be a problem for you.

 

Just a few practicalities - have you got the best possible gas and electricity tarrifs? Some will provide lower rates for pensioners who are struggling. Also, some utilities (including water companies) offer a one-off payment to help out with debt - it's a charity type thing.

 

May be worth talking to your utility companies to see if anyone does operate such a scheme to help with the immediate problems.

 

It's easy to type this here, but please hang in there and try not to become too demoralised. There's a lot of help to be found on this and on other forums such as Money Saving Expert.

 

 

Thanks for support Phoenix11 I'm trying to find out how to do this, think I've posted right. ps. I have done all obvious & over time can reduce outgoings, just that it happpened basically overnight.

[Ed999]

You should contact the housing charity, Shelter, and speak to one of their advisors; or go into your local Citizens Advice Bureau.

 

In either case, talk to them about your rent. Ask them what your legal status would be if you were to be evicted because you are unable to pay the rent, as that seems to be a serious risk in your current situation.

 

Find out under what conditions, you, as a pensioner, might be eligible for housing benefit or other financial help with your rent; and in what circumstances you might be eligible to be rehoused by the Council if you were to lose your current tenancy due to rent arrears.

[Norfolkmouse]

You should contact the housing charity, Shelter, and speak to one of their advisors; or go into your local Citizens Advice Bureau.

 

In either case, talk to them about your rent. Ask them what your legal status would be if you were to be evicted because you are unable to pay the rent, as that seems to be a serious risk in your current situation.

 

Find out under what conditions, you, as a pensioner, might be eligible for housing benefit or other financial help with your rent; and in what circumstances you might be eligible to be rehoused by the Council if you were to lose your current tenancy due to rent arrears.

 

 

 

Thanks for that, I have meet with Bank first, then I will approach Council again and the other orgs.