Wednesday, 8 July 2009

Debt management after having a family

posted by debts.org at 04:36

Maternity and paternity pay

If you are an employee, you should check your work contract or speak to the human resources/personnel department when you start work, about your rights to maternity and paternity pay. If eligible, you could be entitled to maternity/paternity pay for up to 39 weeks. You must tell your employer at least four weeks before you want your statutory pay to start.
Maternity Allowance and the self-employed

You will not be eligible for statutory maternity pay if you are self-employed, but you may be entitled to maternity allowance for up to 39 weeks.

Sure Start Maternity Grant to help avoid debt problems after the birth

If you are pregnant and are claiming benefits such as income support you can apply for a one-off £500 payment to help towards buying baby essentials.

Child Benefit and how to claim

An addition to the family can prove a difficult time financially for many parents. You may already be experiencing debt problems or earning a low income. Make sure you claim child benefit as soon after your child is born as possible. Irrespective of your income, you are entitled to claim child benefit for children up to the age of 16 (or 19 if they are still in full time education).
Child Trust Fund and how to claim

Children born on or after 1st September, 2002 are entitled to a Child Trust Fund Voucher, worth between £250 and £500 depending on your circumstances. This sum must be invested in a tax-efficient Child Trust Fund plan until they are 18. The vouchers are sent out to everyone who is claiming child benefit.

Child Tax Credit and working tax credit

You can claim Child Tax Credit for your children even if your family income is as much as £50,000. Under working tax credits there is childcare part worth up to £240 per week if you have two children or more.

Sickness and disability benefits can help with debt problems

Statutory Sick Pay (SSP)

Statutory sick pay is paid for the first 28 weeks (from the fourth day) you are off work if you are an employee. This benefit is worth £79.15 a week for 2009-2010, but your employer may offer more generous terms. You cannot claim statutory sick pay if you are self-employed.
Long-term sickness benefits have changed recently. Up to October 2008 if you were off work for more than 28 weeks you were switched from SSP to Incapacity Benefit. This is replaced by the Employment and Support Allowance if you are applying for the first time. If you are already receiving Incapacity Benefit, this continues so long as you are eligible.

Losing your job and managing your debts

Losing your job can be a low-point in your working life, but you should be aware of the benefits available to you if you are made redundant. You may be entitled to a range of benefits such as jobseeker´s allowance, which can be based on your National Insurance Contributions or your income and savings. Your redundancy payment may affect your claim but it is worth checking out.

Your rights and retirement benefit

Once you retire, you may have debt problems, credit card debt or debt management problems. You should be aware of your rights regarding your retirement benefit.
Basic State Pension

The main state benefit paid when you retire is the State Retirement Pension, which is based on your National Insurance Contributions. If you are less than 4 months away from state retirement age, (currently 60 for a woman and 65 for a man in the UK), you should contact your tax office or the Pension Service.

Additional State Pension

Your entitlement to additional State Pension is also calculated when you claim the basic State Pension.

Winter Fuel Payment and avoiding debt

The winter fuel payment is between £125 and £400, and the amount paid depends on the age of the claimant. People receiving a state pension are paid automatically, but those aged 60-64, who do not receive a state pension, need to claim the winter fuel payment separately. Cold weather payments of £25 are made for each week of very cold weather.

Council Tax Benefit and how it can help you avoid debt problems in the UK
Age Concern estimates 2.2 million pensioner households miss out on Council Tax Benefit as they don´t know they are entitled to it. This benefit could cut pensioner´s council tax bills by an average £645 a year.

Benefits after the death of a loved one

There are a range of benefits to help you financially when you lose a partner or a child. In addition to suffering grief and emotional trauma after the death of a loved one, you may find yourself with debt problems, and unable to pay the bills. Be aware of what you can claim.
Bereavement Allowance

Formerly called the Widow´s Pension, Bereavement Allowance can be claimed if you were over the age of 45 when your wife, husband or civil partner died, and they had paid national insurance contributions. You could be entitled to a weekly bereavement allowance for a year.
Bereavement Payment

Formerly the Widow´s Payment, Bereavement Payment can be claimed if your husband, wife or civil partner was not entitled to state retirement pension when they died. You could claim a £2,000 tax-free sum.

Widowed Parent's Allowance

Formerly known as Widowed Mother's Allowance, this benefit is a regular payment that you may be eligible for if your husband, wife or civil partner has died and you have a dependent child (aged 16 and under 20) receiving Child Benefit.

You may be eligible for Funeral Payment if you receive either tax credits or certain benefits and need help paying for a funeral, although the money may have to be repaid from the deceased person's estate.

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