[nikkio]

  Childs DLA and our IVA???
« on: June 02, 2008, 11:51:03 PM » 

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Hi, just wondered if someone can tell me if my sons Disability Living Allowance can be taken into account as our income when working out for our IVA?

I thought this money was for my son and not extra cash for the family!

Even when he is 16 (in 5 months time) and the money is paid directly to him, the IVA people say he will have to give it all to me to pay for his day to day 'normal' expences!!

Surely this cannot be right??  My other two children (who are not disabled) do not have to pay for their own day to day expences!!
Please help!!

[johnvb]

You're right, as far as I know DLA is given because of the additional costs and effort required for a disabled person. Any chance you could explain what IVA is though?

John

[nikkio]

 Hi John,
Thank you for your quick reply.

I think IVA stands for Individual Voluntary Arrangement you enter into it to pay back debts.

The Insolvency Practitioner (IP)  looks at your income and allows you 'reasonable' outgoings and supposidly what's left you pay towards your IVA for a period of about 5 years...

This is basically it...hope I explained okay??

But our IP took into account the normal things, ie. mine/husbands wages, child benefit, tax credits etc but they also took into account my sons DLA.

In the expenditure there is no mention of the expenses including things for my son out of his DLA.

Expences are a bare minimum...ie. we are allowed £71 PER MONTH towards work/school lunches.....I don't know about you. but I have three kids at school and school dinners cost £9.50 PER WEEK EACH CHILD!!!   Where's the logic there!!

Therefore my son receives NONE of his DLA and I am claiming it to fund our IVA.

When I question this with the IP all they say is it's ok and that I must have a 'hidden agenda'.

[johnvb]

Hi Nikkio

I don't know the specifics of the regulations here, but I am absolutely certain that your DLA is not paid with the intention of being used in this way. It is not a means tested benefit so should not be taken into account.

Paula will try and look into this further for you tomorrow, though she's currently recovering from looking after Michael who's just had a sickness bug.

Best Wishes

John

[pixie]

I have just asked what IVA is on another part of the forum, sorry, it's been answered here.

Your son's DLA is his money and should not be taken into account.

Maybe when your son is 16 he should start to pay "keep" and that's why they say they can take some into account.

Are you also applying for Incapacity In Youth for your son and Income Support when he turns 16 as that will give him more to be able to pay his keep without leaving him short?

Altogether it should amount to almost £200 per week for your son depending on his circumstances and if you apply for all he's entitled to. Let me know if you need any more info and I'll gladly help where I can.

I know it may sound harsh expecting your child to pay keep but we have done that with all 3 of our disabled children and it does help in the long term to help them manage their money.

Good luck with sorting it all out.

[nikkio]

Thank you for your replies. 

I understand that my son would have to pay me 'keep' when older and working etc. But does he have to pay me 'keep' when at 16 he will still be in full time education?

My daughter, who is almost 17 and still in full time education, does not pay me 'keep' as I still receive tax credits and child benefit for her.
I will still receive these for my son when he reaches 16, so does he have to be penalised more because he is disabled?

What I'm trying to get through to the IP is that for the last year I have been claiming DLA for my son! to fund the IVA and he hasn't received a penny of it!

I have now written to my local MP to see what help he can offer.

[pixie]

"I understand that my son would have to pay me 'keep' when older and working etc. But does he have to pay me 'keep' when at 16 he will still be in full time education?"

I guess that is a personal matter for each individual family to organise. It's just that that may be what the IP are thinking will happen.
Ours pay their keep because we stopped getting Tax Credits, Child Benefit etc.  and claimed their benefits instead. (they now have more coming in than we do) Again that is also dependant on your own personal circumstances. ie some would prefer to continue to receive Tax Credits and Child Benefit etc. rather than claim IB and IS in their child's own right.

It's whatever is right for you and your family. I still don't think your son's DLA should be taken into account by the IP though.

[nikkio]

Thank you for all the replies....

I have brought this up on other forums and have had lots of advice.

It seems now that the DLA can be considered as income but should be completely wiped out in the expences as this is what it is intended for.

Also as our IVA's 'sister' loan company 'cold called' us in the first instance, I have been told to now report this to my IVA's Licensing Body.

I have been to the CAB who gave me their number to make an appointment but I have been trying for 4 days now to get through with no success!!
I'll keep trying though!

[pixie]

Good luck nikkio, I hope you get it sorted out soon.

[nikkio]

Thank you Pixie, and everyone else who has offered advice.

I'll let you know how I get on.

[Speeds]

Wishing you lots of luck.  I think we have all learnt something here about how the law works.

[nikkio]

Hi, thanks again for all replies.....IP not very helpful still...my case has been taken on by my local MP who said he would have assumed my sons money should be protected and is now taking it up with the ministers in the Department and Work and Pensions and national debtline say if you go to court and are given a fine, DLA would not be considered as income.  I'll let you know how we all get on.

Thanks again,  Nikki.