What are you entitled to?

Of course, wages are not the only form of income, but far too many people are not aware of what they are entitled to. The government estimates that billions of pounds in benefits are going unclaimed across the UK.

Here are just some of the benefits available to UK citizens. Are you entitled to any?

Working Tax Credit

You could be eligible for Working Tax Credit if you:
1.        Are aged 25 or over.
2.        Work over 30 hours a week, and
3.        earn less than:
·         £11700 if single
·         £16300 with partner

Child Tax Credit

You may be eligible for Child Tax Credit if you are responsible for at least one child and your total household income is under £58000. 

Housing Benefit

Housing Benefit is there for people on low income who need help paying all or some of their rent, whether they live in council property or rent from a private landlord. In most cases, you won’t be eligible if you:
1.        have over £16000 in savings
2.        live in a home of a close relative
3.        are a full time student with no disabilities and no children, or
4.        are an asylum seeker/sponsored to be in the UK.

Job Grant

You may be entitled to a tax free job grant (a lump sum) when you start work and stop getting benefits. (or if your benefit stops because your partner starts working at least 24 hours a week).  The job must be at least 16 hours a week, and be expected to last at least 5 weeks. You must also have been getting one or more of the following for at least 26 weeks:
1.        incapacity benefit
2.        income support
3.        job seekers allowance
4.        severe disablement allowance
5.        job centre plus/new deal payments (where allowance is based on job seekers allowance, income support, incapacity benefit or severe disablement allowance).
6.        employment zone payments (where allowance is based on job seekers allowance).

Reduced Earnings Allowance

Reduced Earnings Allowance provides extra funds for people who are earning less because of work related accident or disease that happened before 1st October 1990.

(Part 2)

If you are having problems managing your debts, you will undoubtedly find it easier if you could increase your disposable income: raising your income, lowering your expenditure, or both.

Of course, wages are not the only form of income, but far too many people are not aware of what they are entitled to. The government estimates that billions of pounds in benefits are going unclaimed across the UK.

Here are just some of the benefits available to UK citizens. Are you entitled to any?

Income Support

If you are aged 16 to 59 and able to work full time and struggling because you don’t have enough money to live on, you may be eligible for Income Support if:

1. you are a single parent,
2. you are registered sick or disabled,
3. you are caring for someone who is sick or elderly, or
4. you or your partner are not working because you are sick or on parental leave…unless you have saving of £16000 or more.

Statutory Sick Pay (SSP)

If you are employed but off sick, you may be eligible for SSP (unless your company has its own sick pay scheme). You can get SSP if you:

1. are sick for at least 4 days in a row including weekends and bank holidays,
2. are earning at least £90 a week on average, and
3. inform your employer within 7 days of becoming sick.

Incapacity Benefit

No longer able to work (because of illness or disability) but too young to retire? You may be eligible for Incapacity Benefit, if you:

1. can’t get statutory sick pay, or have come to the end of it,
2. are self employed or unemployed, or
3. have been receiving statutory maternity pay and can not go back to work.

Disability Living Allowance (DLA)

If you have a physical or mental disability, you may qualify for DLA if you need help with personal care or have difficulty walking. You can receive DLA whether or not you are employed – it is normally affected by the income you receive or any saving you have.

Note that you must be under 65: if you over this age, you may qualify for attendance allowance

Community Care Grant

You may qualify for a Community Care Grant if:

1. you are moving out of care (residential or institutional) to live independently,
2. an organisation is re settling you in a new home,
3. you need help to stay in your home, rather than go into care or hospital,
4. you look after someone who is ill, disabled or temporarily released from custody,
5. you need financial help – to go to a relatives funeral, for example, or visit someone who is sick, or
6. you or your family are under ‘exceptional pressure’ (such as family breakdown or a long term illness)…………..but only if you are already getting income support, income based job seekers allowance or pension credit – or likely to move out of care in the next 6 weeks and start getting one of them.

Full and Final Settlement offer, what is it?

If you have an overdue debt that you do not think you will be able to repay in full, some creditors will accept a full and final settlement offer. This is an offer to your creditor(s) of a lump sum in order to settle your debts. This lump sum is unlikely to be for the full amount: if you are in financial difficulties and your creditors are not sure they would ever get the full sum, they may well prefer to get some of it now then hope to get all of it in the future.

There are a number of reasons why your creditors may accept a full and final settlement offer:

• It avoids (further) court costs - and taking you to court would not guarantee them repayment anyway.
• A lump sum may be more valuable to them than smaller payments over a longer period.
• Depending on your circumstances, creditors may accept that you are unable to pay any more than this lump sum.

How do I make a Full and Final Settlement Offer?

To make an offer, you should send a formal letter to your creditor(s) explaining your financial difficulties and the offer you wish to make. This letter should include:

• The reference/account number for the debt you are looking to settle.
• A paragraph explaining your financial situation (e.g. Your income versus expenditure) and the offer you are willing to make, as well as why they should accept your offer rather that take an alternative route.
• Details of when you plan to make the final payment.
• A request that if this offer is accepted, the debt will be considered settled and the creditor will no longer pursue any payment.
• A request for a response in writing (for your records).

Remember:

It is vital that you keep a copy of any letters you send/receive, for future reference. This way, you will have a record of all your progress – not just for you, but in case creditors do not receive your letters.

How much should I pay to each creditor?

If you only have one creditor to pay, the full lump sum should go to them. However, if you have a number of creditors to pay, you will need to divide the lump sum fairly between creditors. The best way to calculate this is pro rata (as an equal percentage of each debt).

Remember:

Do not send any money until offers have been accepted in writing. Keep all confirmation letters for future reference.

You should also request a credit report from a credit reference agency once the debt is settled. If your report does not state that the debt has been settled it is important to get this updated, or you may find it harder to get credit in the future.