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Post by valleygirl on Feb 14, 2023 18:23:12 GMT
Hello all i am looking for some advice please regarding Benefits and savings, tale of the tape is my husband is Disabled and has been since car accident in 2003, he is on the PIP higher rate etc, i am his carer so i get carers allowance, we are on "Income Support".
Ok our problem is our House it urgently needs a new Roof and the outer walls need Rendering, so My husband has a pension (old Type) that can only be taking out in one lump, Actually the cost of the work meets the total of the pension.
I have tried talking to Job centre and the answer from them was "as soon as you take out that pension, your benefits will cease", Now we are both not at pension age yet.
I have tried local council for Grant and thats a no go for a start (they did not want to know unless we were at pension age).
I have contacted a Pension adviser who can transfer the funds to another type of pension, but he has said we are allowed £6000 per financial year before it affects our benefits?, 6K will not even repair our roof. the question i have is Should we write to DWP to ask is there anyway they will allow this as its urgent? The builder is awaiting an answer on time frame etc. this is all above board, we have no savings, but we do own the house (if any other members remember me they will know what problems we had with getting house registered and getting running water to it).
Any ideas greatly appreciated, we are struggling with this one
Valleygirl
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Post by philbadfactor on Feb 15, 2023 9:27:20 GMT
Hi Valleygirl, Straight off the top of my head with this one (just what went through my mind reading your post). I do remember a rule in the overall benefits regulations that had to do with selling a property before you bought a new one. Any funds that had to do with the purchase of a property were disregarded for benefit purposes. If the money is straight in, and then straight out for the repairs I would think that would be fine and hardly worth mentioning to the DWP. You get £1 deductions off benefits for every £250 of savings over £6000 and it's been set at that for donkeys years and obviously needs upgrading. Any one else got any thoughts ?
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Post by valleygirl on Feb 15, 2023 13:13:08 GMT
Hi phil thank you for your reply, i think its changed now as i was told yesterday by job centre is £4.25 deductions per £250 over £6000, i think as we are hoping to get his Pension out, it automatically informs HMRC who inturn informs the DWP, his pension will take a hit when we move it to this other company and also we have to pay the Finacial advisor who is arranging this, but the repairs are close to 30k, its too much of a risk me thinks to take it all out in one hit and give it directly to builder, as with our luck over the years we will get pulled up, and My husbands PIP is for renew next year, i dont want to rock the boat but its looking like the only way we can get these repairs done.
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Post by philbadfactor on Feb 16, 2023 5:19:26 GMT
My advice really is don't do anything until all options have been considered. For example have you looked into taking out a loan to cover the work and then claiming SMI to cover the interest ? It seems a shame to cash in a pension for this purpose. with SMI you get a loan to pay the interest on another loan. But that interest only becomes payable when the property is sold.
SMI is a loan that can help towards interest payments on:
your mortgage loans you’ve taken out for certain repairs and improvements to your home If you qualify for an SMI loan, you can get help paying the interest on up to £200,000 of your loan or mortgage.
Might be worth considering ?
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Post by philbadfactor on Feb 19, 2023 14:57:03 GMT
Further advice for what it's worth valleygirl is that it might be worth delaying this work, if that's feasible, in the hope that a future Labour government might restore some Grants for struggling Homeowners for essential repair work. Something akin to the "decent homes" initiative of the last Labour government. That would be my approach anyway. Please let us know how you get on and what you decide to do. all the best.
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Post by valleygirl on Feb 26, 2023 23:34:35 GMT
Thanks Phil unfortunately we cannot put the work off, due to the leaking roof/chimney, been last 2 weeks looking at all possibilities, our problem is we are on income support, thats the killer for releasing the pension, we currently have no mortgage and was thinking of even getting a mortgage, but our ages go against us, it may look like a loan until the money can be released without any penalties etc. but Thank you from the bottom of my heart for your advice.
VG
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