Benefits and help with council tax when individuals separate

Splitting up not only marks an emotionally charged period in an individual’s life, but it can also significantly impact finances. Without a partner, one might find that their income diminishes. However, certain benefits might be available, including some that individuals might be unaware of.

If the individual was married

Should an individual have been married or in a civil partnership, they might be able to claim from their former spouse. During divorce proceedings, they might also qualify for financial support for court fees and legal services. Those who qualify for such support typically receive benefits.

If the individual is a lone parent

Universal Credit functions as a system to assist beneficiaries with living expenses. Typically disbursed monthly, it caters to those on low incomes or those unable to work. This system replaced previous benefits, encompassing income support, housing benefits, and child tax credits. If eligible to make a Universal Credit claim and being a lone parent with a child under one, there’s initially no requirement to work. However, as the child ages, the parent should contemplate returning to employment, perhaps undergoing training to refine or update skills.

To avail Universal Credit, the recipient should work 16 hours a week while their child is below three years, and 25 hours a week once the child begins full-time education. Upon the child’s enrolment in secondary school, a 35-hour working week is expected, although exceptions might apply in certain scenarios. The Universal Credit payment considers any other income and earnings from primary employment. Furthermore, lone working parents might be eligible for child care payment assistance, contingent on the number of children.

Support with housing costs

Assistance with housing expenses now also takes the form of a Universal Credit payment. If an individual previously received Housing Benefit but needs to file a new claim due to altered circumstances, they might need to transition to the Universal Credit system. Presently, Housing Benefit is reserved for those in sheltered accommodation or individuals who’ve attained the state pension age. For homeowners or those in a shared ownership scheme who receive Universal Credit, Pension Credit, or Job Seekers Allowance, a claim for Support Mortgage Interest is possible. This constitutes a repayable loan from the Department of Working Pensions (DWP) aimed at covering mortgage interest.

Help with council tax

Within local councils in England and Wales, single adults might be eligible for a single person occupancy discount on their council tax bill, equating to a 25% reduction based on the prevailing rate in their locality and band. Eligibility criteria include being over 18, not undergoing full-time education, and residing in the property. To benefit, one should reach out to the local council’s council tax department. The initiation process starts here by inputting a postcode. Some might also qualify for a Council Tax Reduction (CTR) if they’re on a low income and receive Universal Credit. If not eligible for this reduction, other types might be available, warranting a consultation with the local council tax department.

Determining potential entitlements

A report by entitledto suggests that a staggering £7.5 to £8 billion of Universal Credit remains unclaimed by 1.2 million households. This is complemented by £3 billion of Council Tax Support left unclaimed by 2.7 million households. Thus, regardless of current circumstances, it remains prudent to ascertain potential entitlements should separation occur in the future.

The editorial unit