On Benefits and in debt Social Security Administration Act 1992

[Wheels60]

Hi,

Just found something that might be of interest.

 

If your only income is Benefits, and you are in debt, Something might help.

 

See "Social Security Administration Act 1992, Chapter 5 - Section 187"

It says that certain benefits are "inalienable", i.e. cannot be used for any purpose other than that for which they were intended.

It further says that such benefits CANNOT be used to settle debts or charges and that any agreement for that can be "Voided".

Section 187 of the "Social Security Administration Act 1992" says that any benefit under Section 122 (Parts II to V) of the "Social Security Benefits and Contributions Act 1992" qualifies as "inalienable" .

That covers most benefits.

So, correct me if I am wrong, but, it seems to me that if your only income is in the form of "Qualifying Benefits" under those rules, any Creditors CANNOT demand payment for debts or charges from that income.

[Bazooka Boo]

If your ONLY source of income is benefits, then the maximum you ever need to pay any creditor is £1 a month, if anything! Remember that benefits is what the Govt says is the Minimum you you need to live on, so there is no room for luxuries or debts.

[Wheels60]

Wow, that could be very useful for me. Please give me some proof (Legislation) that I can use to achieve this.

[Bazooka Boo]

I will try and find it and dig it out for you, but have a search around on google and it should flag up.

[rebel11]

Thread moved to the correct forum.

[sj01]

That cant be true of mortgage payments can it?

[Bazooka Boo]

You would get Housing benefit if you needed to cover your mortgage.

 

You cannot be expected to pay off debts with benefits, they are the minimum you need to live on.

[sj01]

Would this count with council tax arrears. They are asking me to pay £94 a month.

[Nystagmite]

You can't get housing benefit to pay off your mortgage. You can get support for mortgage interest (SMI) for that.

[MarySpencer]

You can't get housing benefit to pay off your mortgage. You can get support for mortgage interest (SMI) for that.

 

What happens if the payment leaves a short fall?

Are you expected to cover the whole amount.

 

Mary.

[Nystagmite]

Yes, you are expected to cover short falls.

[MarySpencer]

Yes, you are expected to cover short falls.

 

Thanks

 

Mary

[antone]

You would get Housing benefit if you needed to cover your mortgage.

 

You cannot be expected to pay off debts with benefits, they are the minimum you need to live on.

 

This is not correct, as a general principle. There are certain debts that creditors can request to have deducted directly from benefits. The conditions the DWP imposes are fairly strict (the gas company might have a case for a third-party deduction, the store card company probably doesn't) but it is possible to have payments taken direct from benefits. There's some information in this PDF document from the DWP website: http://www.dwp.gov.uk/docs/tpp-new-creditor-guide.pdf

 

There is a specialist TPD department in benefit processing centres, as this is a complex area of the benefit laws.

[Wheels60]

If on Benefits alone, and that is your only income, you will qualify for full relief on Council Tax. It's not "Housing Benefit", it's "Council Tax Relief". I get it 100%, I don't pay any.

[Wheels60]

I get some support to pay the interest on my mortgage, it pays about a third of it, and it helps a lot. Ask Social Security about it. I think it's called "Mortgage Relief" or something like that. But my Mortgage Co are not helpfull at all, they would not convert to an "Interest Only" policy

[antone]

If on Benefits alone, and that is your only income, you will qualify for full relief on Council Tax. It's not "Housing Benefit", it's "Council Tax Relief". I get it 100%, I don't pay any.

 

Indeed so (generally speaking, nothing in benefit law is that easy), but can I make a small point for our viewers in Scotland

 

Council Tax Benefit in Scotland can't cover your water charges. So you may actually need to pay a small amount in CT, even if you are on full CTB.

 

The reason for this is that our friends south of the border are billed for water in the same way we are billed for electricity or gas. That doesn't happen in Scotland - water costs are wrapped up in our CT. So that portion of CT that represents out water charges can't be paid by CTB.

Edited October 30, 2011 by antone
Correct typo

[Wheels60]

Not on mortgage payments, but can get some help with interest from Social Security. Ask about "Mortgage Relief" and help with the payment of the interest on the mortgage. It helped for me. SS pay about one third of my monthly payments for me.

[Wheels60]

My Debt Management Boys say that we are absolutely right. Benefits such as mine are "Inalienable". Should not be paying more than £1 per month to each Creditor. So WHY Oh WHy didn't the Debt advisers company tell me that 5 years ago? Been paying £127 per month for the last 5 years!!!