Benefit caps - but is there a minimum?

[Very unhappy bunny]

Hi

 

I have previously posted about a situation regarding a friend of mine. Husband on ESA (Assessment Phase) awaiting tribunal hearing. She has recently closed her business. She tried to sign on Jobseeker's but was told she would be added to her Husband's claim. It could well be she didn't have the relevant contributions as she paid Class 2 and Class 4. It is now some eight weeks since the DWP were informed about this but they are still only receiving her Husband's £71.70 a week ESA. Their only other income is approximately £62/£63 a week private pension. They have no savings.

 

Can someone please advise is income of approximately £135.00 deemed enough to live on? They have applied for CTB but heard nothing back. They have returned all necessary forms. CT is £155.00 a month (12 months). They have a mortgage of in excess of £800 a month which is now in arrears as is their CT (both 1 month).

 

Her husband has been informed that it could be approximately 4 months before he hears about a Tribunal Hearing. I have tried to look at information for them and it would appear that he is entitled to Pension Credit from January 2014. That said, it looks like changes may effect this from October 2013 as my friend is younger than he is and it appears they may then go off the youngest age.

 

Sorry for rambling on - trying to help a friend in need.

 

Thank you for any advice.

 

VUB

[Nystagmite]

Couple rate ESA (assessment phase) is somewhere around £112 per week.

 

Have they applied for their mortgage interest to be paid?

[Very unhappy bunny]

Hi

 

Thank you for the information

 

I mentioned the mortgage interest to her but she thought the scheme kicks in after three months is that correct? It is something that she needs to look into. Will they deduct anything from the £112.00 because of his private pension do you know?

 

Thank you.

 

VUB

[antone]

Yes, there is a 13 week delay before mortgage interest can be paid. The entire amount of a private pension is deducted from income related ESA.

[Very unhappy bunny]

Hi

 

Thank you for that information. He is currently receiving £71.70 so basically would get £40 extra for his Wife to be added to the claim as a dependant - but then they would take £63.00 per week off that making him worse off for his pension. The mind boggles.

 

Thank you for your help.

 

VUB

[antone]

He wouldn't be worse off, as the cont based part of his claim would not be affected by a £63 pension. This kind of situation is confusing, and I can do a more detailed explanation if you want. It could be tedious, though, so I'll only do it if you feel it would help - let me know.

 

The main benefit to making a joint claim for ESA(IR) would be entitlement to mortgage interest.

[Very unhappy bunny]

Thank you Antone for explaining.

 

My friend did speak with someone at a benefit advisory service yesterday and they advised her that they are entitled to £101.20 to include the mortgage interest. It has not been 13 weeks since she was added to his claim so I assume the mortgage interest part will not be added at this stage. So in essence if they take his pension from the £112.00 at this stage he will receive £49.00 as opposed to the £71.70 he was getting before she was added.

 

As regards mortgage interest - they have a mortgage payment protection insurance policy which has a waiting period of 60 days which she is in the process of claiming. This pays less than half of their contractual payment. I assume that as this amount should cover the interest only element that they will not be eligible for the mortgage interest part of the contribution based ESA claim. The council tax appears to reduce from approximately £155.00 to £92 per month. This is still a huge slice to find out of their income.

 

He is eligible for Pension Credit in January 2014 under the current legislation and it appears that they would receive more benefit then and pay no council tax at all.

 

This really is a minefield!

 

Thank you.

 

VUB