ESA Income Based and Mortgage Payment Protection Insurance

[Very unhappy bunny]

Hi

 

I have previously sought advice for my friend regarding her financial situation and wonder if someone can clarify whether a mortgage payment protection insurance that covers less than half her actual mortgage will affect Income based ESA?

 

Briefly, Husband on Contribution based ESA - Wife added to claim early July due to closure of business but not received anything other than the £71.70 Assessment Phase at this time. He does receive a small private pension of just over £60 a week. Recently he received letter from DWP regarding entitlement to Pension Credit in January 2014.

 

Mortgage Policy due to kick in after 60 days waiting - I understand that will be end of this month.

 

She has read that if the money is paid directly to themselves it is reduced pound for pound off any benefit whereas if they paid direct to the building society it is not affected.

 

My friend is currently under the doctor for anxiety and depression. I wonder whether it would be advisable for her to claim ESA in her right and both go back to ESA Contribution Based. (She could not claim Jobseeker's as hadn't paid Class 1 contributions)

 

Once again, any advice appreciated.

 

VHB

[Very unhappy bunny]

Any advice would be gratefully received.

 

VUB

[Very unhappy bunny]

Any advice would be appreciated or does anyone know where my friend could get a definitive answer?

 

VUB

[**Margaret**]

:Very unhappy bunny:

 

I've looked back through your other thread and the reason you're not getting much response is the sheer complexity of your queries. At best I can only offer some comments, rather than specific advice.

 

Your friend may have been incorrectly advised, at the Jobcentre, as to which benefit she should claim. She needs to ascertain whether her national insurance contributions record will support a claim for contributions flavoured employment n support. Probably best done with a written enquiry (via recorded delivery) to the benefit centre that pays her husband's employment n support. In very general terms she needs to have paid class 2 contributions on earnings of £100 ish per week during each of the tax years ending April 11 and April 12. If entitled, both partners can have an individual contributions flavoured award of employment n support.

 

Applicable housing costs (I've no idea how they're calculated) count as disregards for calculations of income from mortgage protection policies. If payments in excess of applicable housing costs are made directly to the lender there's deductions for notional income from income related entitlement to benefits. There's some state support for mortgage interest once income flavoured benefits of ESA, IS, or JSA have been in payment for thirteen weeks. Bit thin on the ground but your friend really needs some specialist help with her housing issues. Citizens Advice, or her local authority may have a welfare rights department. Is there a homeless/housing charity in her area? Apart from anything else, with the housing complication she needs a better off calculation as to whether a joint claim for income flavoured employment n support nets more than two individual claims for the contributions flavoured variety.

 

Currently (according to Government) a couple need £112.55 per week.

 

Best wishes, Margaret.

Edited September 18, 2013 by **Margaret**

[Very unhappy bunny]

Hi Margaret,

 

Thank you for your email. I have passed your suggestion on to my friend regarding contacting a welfare rights agency direct. I think she has become confused through the Class 2 contributions not counting for contribution based Jobseekers but count towards ESA.

 

Thank you.

 

VUB

[antone]

Hi Margaret,

 

Thank you for your email. I have passed your suggestion on to my friend regarding contacting a welfare rights agency direct. I think she has become confused through the Class 2 contributions not counting for contribution based Jobseekers but count towards ESA.

 

Thank you.

 

VUB

 

Yes, this is a common area of confusion.