I live with my partner who lost his job last july. I have a 6 year old child living with us. The marital home is sold - just waiting for the normal stuff to happen. I haven''t received an offer for settlement yet from stbx but there is supposedly an offer in the pipeline.
I work part time, partner got job seekers for 6 months, now he gets nothing. I get increased child tax credit (since job seekers ended), housing benefit, working tax credit and free prescriptions/dentist costs.
My question is, once settlement is agreed and I get my share, do we then have to live off the settlement and all benefits will stop?
It all depends, I''m afraid. My understanding is that any capital in excess of £16,000 will disqualify you from all means tested benefits, like income support or housing/council tax benefit. Capital between £6000- £16000 will reduce your benefit but not disqualify you altogether.
There are other benefits that are not affected by capital, for example disability living allowance.
But that does not mean you are disqualified for ever. It is quite legitimate for you to spend your capital in a reasonable manner. If you need a new cooker, for example, it''s quite OK to buy one. What you are not allowed to do is spend recklessly to bring yourself within the scope of means tested benefits.
The rules do change and a visit to the CAB to confirm this advice is recommended. I haven''t done this for some time.