Benefits & Debt
Dealing with debt is a significant concern for individuals regardless of their income level. However, for those on low incomes, every penny becomes crucial. That’s why it’s imperative to explore whether you qualify for benefits and other forms of financial assistance.
In this comprehensive guide, we’ll delve into the intersection of debt and benefits. We’ll discuss how benefits can potentially alleviate your debt burden, explore the various benefits you may be eligible for, and provide guidance for those already receiving benefits and grappling with financial difficulties.
Many individuals in the UK might not realize they qualify for financial assistance, despite the existence of various benefits. At MyDebtPlan, we’re dedicated to ensuring you’re aware of potential entitlements that could provide essential support during challenging times.
Eligibility for benefits and the corresponding amount depend on both your financial circumstances and personal situation. You may be eligible for benefits if you:
To ascertain your entitlement to specific benefits, visit the UK Government website and utilize their debt calculator. Click here to begin your assessment.
If you’re facing financial difficulties, several benefit payments are available in the UK to offer you much-needed support:
Universal Credit: This comprehensive benefit combines several previously available benefits into a single monthly payment. It’s the standard benefit for most local councils.
Jobseeker’s Allowance (JSA): Designed for individuals actively seeking employment, JSA provides financial support during the job search. Eligibility is based on being out of work or working less than 16 hours per week.
Income Support: Intended for individuals with low income or no earnings, Income Support has been superseded by Universal Credit in most council areas.
Working Tax Credits: While mostly replaced by Universal Credit, individuals receiving child tax credit may still qualify for Working Tax Credits.
Housing Benefit: Aimed at assisting low-income individuals with housing expenses, Housing Benefit may be available depending on your council area.
Several benefits in the UK specifically support families:
Child Tax Credits: Offered alongside Working Tax Credits, Child Tax Credits provide financial assistance to eligible families.
Child Benefit: Families qualifying for Child Benefit receive a designated amount for each child, with the total amount varying based on the number of children. From 6 April 2024, families where the highest earner has a salary of up to £60,000 a year will not be subject to the High Income Child Benefit Charge (HICBC). Previously, a person who had an annual income of £50,000 or more would be liable to pay the charge if they or their partner were receiving Child Benefit.
If you’re already receiving benefits and still facing financial challenges, consider these steps:
Ensure You’re Maximizing Benefits: Utilize online tools like the UK Government benefits calculator to verify your eligibility for additional benefits.
Communicate with Creditors: Don’t ignore communication from creditors; instead, engage with them to explore potential repayment arrangements or assistance programs.
Seek Free Debt Advice: If your debts are becoming unmanageable, seek guidance from debt management charities or companies offering free advice.
Consider Debt Solutions: Formal debt solutions such as Individual Voluntary Arrangements (IVAs) or Trust Deeds can help manage debts effectively and potentially lead to debt write-offs.
If you’re experiencing financial difficulties and need guidance, expert advice can make a significant difference. My Debt Plan specializes in helping individuals manage and alleviate problem debts. From debt advice to formal debt solutions, we’re here to support you. Contact us at 0161 768 4601 to explore your options and regain financial control.
Tell us about your current debts and one of one of our experienced advisors will talk you through all the options available.
Dependant on your circumstances and financial situation, we’ll look at the solutions so you can choose an option that suits you.
Once you have chosen a solution, we will take the necessary steps to arrange this for you.
Lucy Novo Deakin is a licensed insolvency practitioner in the UK by the Insolvency Practitioners Association (IPA).
My Debt Plan Ltd provides insolvency solutions to individuals, specialising in IVA’s. All advice given is provided in reasonable contemplation of an insolvency appointment. Where you are not suitable for an IVA, we may refer you to one of our trusted partners who specialise on alternative solutions, and as such we will receive payment for the introduction if you enter into a debt solution with one of our partner companies.
Registered address 2nd Floor Blenheim Court, Cheadle, Cheshire, England, SK8 2JY Company Registered in England and Wales Number 10992838 Data Protection ZB284067.
To find out more about managing your money and getting free advice, visit Money Helper, an independent service set up to help people manage their money.
*Our advice on your options is always free. We will always notify you if a solution you choose has any cost.
**Of 2,381 IVA cases approved between January-December 2023, the average expected write off assuming successful completion is 74%.
A debt write off amount between 25% and 75% is realistic, however, the debt write off amount will differ for each customer upon their individual financial circumstances and is subject to approval of their creditors. Any remaining qualifying unsecured debt in your IVA will be written off, however some unsecured debts will be excluded, such as court fines, child maintenance and student loans, therefore you will need to continue paying these both during and after the IVA.
