[mysticmeg]

If you have a long term disorder and it is a certainty it will not improve , what will happen? Will they have to go onto JSA or still have long term benefits?

[mysticmeg]

I have a student loan from years ago and the loans company passed it onto a debt collection agency. I have not responded.
The loans recently contacted me to ask me to contact the loan company. I daren't.
As the government want to reduce short term prison sentences , does this mean I will have to go to a labour camp to pay off the debt?

[ebonycat]

I have direct payments for services I use
but I keep getting mixed up with all the paperwork needed for auditing

They asked me to repay £970 because my cleaning service was only doing 8 hrs instead of 12 a month

I was saving my hours so I could have two days a week instead of one, can they demand I repay this money?

how do I manage my paper work if I am ill? will they stop my direct payments?

[ramboghettouk]

One of my neighbours had a student loan and had given up a course due to among other things mental health, he didn't have to pay back the loan as he wasn't working but every year they added interest to the sum owed, testing

[Admin - Rethink]

A reminder that, if you want to ask Sarah some questions 'live', she'll be here from 2pm today.

She will also have something to say about our campaigning around welfare and benefits.

[Sarah - Rethink]

Hi all - Sarah Murphy here, I give financial inclusion advice for Rethink, which basically means money advice. I'm going to be answering some of the questions you've posted above - as many as possible!

[Sarah - Rethink]

First, some news from our campaigns team… Rethink has joined forces with the Disability Benefits Consortium (DBC) to campaign for fairer access to benefits.

We know that benefits are essential to people affected by severe mental illness, and tomorrow (Friday) Rethink is launching a major survey on behalf of the DBC.

Anyone who claims benefits due to mental health problems should fill in the survey.

We need the evidence from this survey to help us campaign against benefit cuts!

We will publish the survey link here tomorrow.

Sorry I can’t answer questions about this now, I’m just passing this on from our campaigns people!

[Sarah - Rethink]

alienpresence - you asked about the changes to housing benefit.

The majority of the proposed changes will affect people who rent through a private landlord, not the local council or a housing association.

The Government have proposed a plan to cap Local Housing Allowance, which is the system that is used to work out how much housing benefit someone who lives in a privately rented property can get.

For a one bed roomed property the maximum amount of housing benefit someone could be paid will be £250 per week or £1083 per month.

At present these proposed changes have not been made law.

[Sarah - Rethink]

The Government have also announced that they propose to give more money to local authorities for ‘discretionary housing payments’.

These are payments which a local authority has discretion over and can be applied for if you need extra help in meeting your housing costs.

So if, for example, your housing benefit doesn’t cover your full rent each week or month, you can ask the local council for discretionary housing payments to make up the difference.

This scheme operates currently but the Government have proposed to triple the amount of money they give to local authorities for the discretionary housing payment ‘pot’,

[Sarah - Rethink]

ghost - you mention that IDS is ‘scrapping IB and everyone is being moved to JSA’. This isn’t strictly the case. Everyone who currently receives the ‘old style’ incapacity related benefits (namely Incapacity Benefit, Income Support on the grounds of disability and Severe Disablement Allowance) will be reassessed over the next 4 years.

Instead of being assessed using the old ‘Personal Capability Assessment’ they will be assessed using the ‘Work Capability Assessment’. If someone is still found to be not well enough to work, they will then be paid Employment and Support Allowance (ESA) rather than their original incapacity related benefit.

It has been the case that the new WCA is harder to ‘pass’ than the old test. The test is being reviewed and Rethink and other disability groups are working together to lobby Government to try to ensure the test is fair for all (see my first post for some news from our campaigns team!)

[Sarah - Rethink]

mld - you ask about self-assessment tax returns. I’m afraid that’s a bit out of my area of expertise - tax is a specialism unto itself!

You should be able to get some useful information from the charity Taxaid: www.taxaid.org.uk

[Sarah - Rethink]

yorkiegal - you ask a number of questions about benefits.

Firstly, money that is paid to someone as a ‘voluntary payment’ (I,e, you’re not expected to give anything in return for the money) is not classed as income and therefore doesn’t need to be reported.

However, if your savings go over the threshold (any savings over £6,000 can have an effect on means tested benefits, so in your case Income Support and if you are paid any Housing Benefit or Council Tax Benefit) then this should be reported as a change of circumstances.

The DWP can request information about income and capital if they suspect fraud dating back to the start of the claim.

[Sarah - Rethink]

In terms of your second question yorkiegal, Jobcentre Plus are starting 'IB migration' this October.

To begin with they are trialling the process in Burnley and Aberdeen.

They will then start to move the rest of the population over beginning in February 2011 and aiming to end around April 2014.

When you are reassessed under the new test will depend on when your current IB claim is up for renewal.

When it is, instead of being asked to take the Personal Capability Assessment you will do the Work Capability Assessment. To date the amount of money payable to someone in the Support Group will depend on a number of factors - such as level of DLA and whether they live alone.

There is a commitment however that no one will receive less on ESA than they currently receive on IB.

If you are found fit for work and appeal the decision, you can either claim Jobseeker’s Allowance until the appeal is heard or you can receive ESA at the assessment rate (currently £65.45 per week for an adult aged 25 or over) until the outcome of the appeal.

[Sarah - Rethink]

yorkiegal - you also mention you have an old student loan which you defaulted on many years ago.

This might get complicated! But...if you

• have 'old style' (ie pre 1998) loan,
  
• and a clear 6 years have passed since you last deferred your payment
  
• and you have not made a payment nor acknowledged that you owe the money in writing
  
• and the Student Loans Company haven’t got a County Court Judgment(CCJ) against you

then this debt may be ‘statute barred’ under the Limitation Act 1980. Phew!

This basically means the SLC could be 'out of time' to pursue you for the money. More information on this, including a sample letter you can use to send to any collection agency who may contact you about it can be found here: http://www.nationald..._limitation_act
This would also apply to any other credit debts you may have.

[Sarah - Rethink]

Depending on who supplies your electricity and also your water, yorkiegal, you may be able to apply for a grant which would clear the arrears.

If you can let me know who supplies both I can find out and point you in the right direction.

[Sarah - Rethink]

Daveb - I can empathise with your situation, it’s very hard when you’re on the borderline in terms of being just over the threshold for benefits.

I would advise first of all completing a personal budget sheet, which shows all of your income and takes away just your essential monthly outgoings.

There is a blank one you can fill in here: http://www.nationald...es&time=monthly

Doing a budget is a really good way to see the lay of the land and scrutinise what you are paying for each month.

Remember to factor in the payments you don’t make each month (such as road tax, clothes, haircuts or emergencies).

[Sarah - Rethink]

In terms of income, Daveb, if you are working and earning over a certain level then you are going to be limited in terms of ‘means tested’ benefits you could be entitled to.

If your condition means you have certain care or mobility needs you may be able to claim Disability Living Allowance (DLA) which isn’t means tested and you are still able to qualify even if you are working.

More information on DLA can be found in the Rethink factsheet: http://www.mentalhea..._living_al.html

[Sarah - Rethink]

In terms of child maintenance, are you paying a voluntary payment, through the CSA or a court order Daveb? The CSA have a calculator which can help to work out how much you should be paying each month based on your income and the number of nights you care for your children.

Unfortunately it does not apply to child maintenance calculations before March 2003.

It could be a useful tool to check how much you are paying bearing in mind your children do stay with you and the current level of income.

https://secureonline...maintenance.asp

[Sarah - Rethink]

In terms of your other monthly outgoings, there will obviously be some that are fixed - such as your housing costs and TV Licence. However, there may be some items you could save money on. Fuel suppliers, insurance providers, mobile phone and telephone, internet and TV packages are all good areas where if you ‘shop around’ you may be able to get a cheaper deal.

Websites such as www.moneysavingexpert.com are good for pointing you in the right direction.

And, if you live alone, ensure you are getting a 25% single person discount on your council tax bill.

[Sarah - Rethink]

Another tip may be, once you have completed a budget to operate two different bank accounts, one for bills and one for ‘spends’.

If your income is paid into one account and all of your essential direct debits or standing orders go out of that account each month, you could transfer over a set amount to a different account which you use to buy food, monthly travel costs etc., ie the more variable payments. That way you can ensure you always have enough to cover the important bills and don’t fall into arrears.

You can also keep the money you set aside each month for the one-off payments, like car tax, in the ‘bills account’ so when the tax is due, the money is there and you don’t have to dip into your food money to pay for it.

This works best if you don’t take the cash card for the bills account out with you, so you’re not tempted to dip into it.