Hi, I don't know if anyone can help but my husband and I have been in an IVA for the past year now and someone has said to me that we were possibly mis-sold it because my sons disability living allowance should not have been taken into account as our income as the money is actually his money. Our IVA practitioners, say the money should be considered as we have to pay our sons normal expences out of this. Once he turns 16, in 5 months time, his money can be paid directly to him and the IVA company said he should pay the money back to us each month to cover his 'expences'!

Surely we would have to pay the normal expences for my son if he was disabled or not? The disability living allowance is his money, paid to him, but unfortunately as he is under 16 it has to be paid to me first.

When questioned about this, the company accused me of having a 'hidden agenda'!

I just do not understand why my son has to pay for his own normal expences because he is disabled when my other two children don't?

Please can someone explain? Thanks.

Hi --- DLA is paid as an extra allowance to your Son and for his benefit to help with the extra expenses associated with his disability needs. It is awarded to your Son because the law has decided he needs the extra money to cope with his extra necessary day to day living needs caused by his disability, it is not to be classed as your income, or for his normal living costs.

Remember, had he not got any disability, then he would not have any DLA. !

Basically the awarded amount of money at the moment is paid into your trust for his benefit (you are not the intended recipient), it is not your money & they have no right to include this money as a part of your income in their calculations.

I advise you to register with the disability help site, "yourable.com" for independent clarification, they have volunteers and professional advisors who know the benefits system inside out, as some of them are decision makers working for the DWP & DLA in Blackpool, along with other agencies.

Hi, thanks for your reply. I have now been in touch with the DLA helpline, the CCCS, mencap, yourable.com, the CAB and joined other forums.

So far all I can make out is that the money can possibly be taken as income while my son is a minor but once he reaches 16 the money is his to spend how he wishes.

The IVA company still insist that, although when he is 16 and still in full time education, therefore not working, he should pay all his DLA to me as income.

This will be another avenue to investigate as, why should my son in full time education, pay towards household bills just because he is disabled when my perfectly able bodied daughter, almost 17 and still in full time education does not have to?? It's almost like he's being victimised for being disabled!!

Hi --- The IVA company has a vested interest in classing this money as your income, they are biased and I think in the wrong to take his money into consideration as your income.

The reasons I think they are wrong are that even the Inland revenue do not class DLA as income, it is not counted as a persons income by them and is treated totally free of tax, if they will overlook it then the IVA company hasn't got a hope in hell of classing it as income, let alone your income. !!

It is also a disregarded benefit when the DWP works out other benefit entitlement, therefore ignored by them also as income.

Have a word with the Community Legal Services below, they are good with this kind of problem.

http://www.clsdirect.org.uk/

Hi nikkio

This sounds like this could be another IVA shocker to me, however please read on.

Disability Living Allowance (D.L.A.) is a non-means tested benefit wether it is paid to a child or an adult, it is ignored for housing benefit, council tax benefit and income support. It is paid as I am sure you are aware to assist with special needs and is a godsend to some people and rightly so in my opinion.

On an income and expenditure sheet or Financial Statement it is usually put down as income and the same amount is recorded as expenditure (eg care or mobility costs or both). As far as I am aware (someone correct me if I am wrong) in the case of a County Court Judgement or indeed a bankruptcy petition it is ignored as disposable income if put down as care and mobility costs.

I understand that it can be included as disposable income in an IVA if you agree and dont want to put it down fully or partly down as care and mobility costs. I would however say, in some circumstances any disposable income as a result of being in receipt of DLA could possibly make the difference between an IVA proposal being accepted by your creditors or not which may be very important in some cases for obvious reasons.

If you could give us more details of your IVA and surrounding circumstances maybe someone will be able to give further information which may be of interest to you. Also were all your options fully explained and explored prior to you entering your IVAs, please do not take this as an intrusion and dont feel under any obligation to answer.

Wishing you the best

Your sincerely

Pincer.

Apologies Conmankiller looks like we were posting at the same time resulting in some similar crossover points.

By the way I absolutely agree with you on some of your other points.

Some of the IVAs I have seen have made me feel physically sick.

I have had a careful read through this thread today and without wanting to cause any offence I would be interested in Cybus's view on the issue of D.L.A. and IVAs.

Pincer.

Pincer -- No problem, we are both only tying to achieve the same thing for the interests of the OP, it's good to have your input as well.

It seems a Grey area that I cannot find a definite answer on at the moment, but I am sure as I state above. If HMRC and other Governmental benefits agencies ignore DLA as income, then I am sure that pretty much clinches it as far as the law is concerned. ?

Pincer - On an income and expenditure sheet or Financial Statement it is usually put down as income and the same amount is recorded as expenditure (eg care or mobility costs or both). As far as I am aware (someone correct me if I am wrong) in the case of a County Court Judgement or indeed a bankruptcy petition it is ignored as disposable income if put down as care and mobility costs.

That is correct, it is ignored as income in the circumstances above, and is merely shown for illustration purposes to the court, but one negates the other for the calculation of the award the court is deciding upon.

Thank you.

Pincer.

Thanks for your replies.

When we entered into out IVA the options were not fully explained and explored with us. We were trying to get a loan and passed to a consolidation company to help us. In the first month we paid over £700 admin costs then it took them about 5 weeks to tell us they couldn't help us and would pass us to their 'sister' company for an IVA. This company then charged us over £645 admin costs before telling us what we would be paying. We were not given a choice in anything, and being nieve and desperate just went along with it.

My sons DLA is shown as income but none of it shown in expenses. I have spent the last year telling my son, when he needed something, that he would have to wait til the end of the month to see if we had any money left over!!

At the moment we are paying 38p in every £1 but even without the DLA I'm sure we could make the minimum 25p, then the money could be spent on the person it's really needed for!!

Hi --- You could point them to the below section 187 of the SSA act 1992, although I am not sure if DLA is one of the specific intended benefits in (a) ......In your case it's certainly a benefit paid to a child as in section (c) although not the usual Child benefit itself. So therefore it should be untouchable or inalienable whichever word you prefer to use.

This is not to forget the fact this DLA is paid to your Son who suffers the disability, it should not be classed as a part of your income at all. !

I have to run a hypothetical scenario for comparison reasons. ..... If your Son went into hospital long term then this DLA award would be suspended while he was in the hospital's care, so how can they reasonably claim it is yours. ?

Social Security Administration Act 1992
Miscellaneous
Certain benefit to be inalienable **

187- Subject to the provisions of this Act, every assignment of, or charge on-
(a)benefit as defined in section 122 of the Contributions and Benefits Act;
(b)any income-related benefit; or
(c)child benefit,
and every agreement to assign or charge such benefit shall be void; and, on the bankruptcy of the beneficiary, such benefit shall not pass to any trustee or other person acting on behalf of his creditors

Thanks for the replies so far.

I have spoken to a lot of people on different sites and forums and so far have received conflicting views!!

All I can make out is DLA can be taken into account but must be shown as extra expenses out of the DLA.

Well there are no extra expenses for my son, so in reality my son receives NONE of his benefit money. I am basically claiming DLA to fund my IVA!!!

I went to the CAB and was given a number to phone....I have spent the best part of the last two days trying to get through to them!!!!! With no success as yet.

I spoke to the DWP who say, when his is 16 (in 5 months) the money will be paid straight to him to do with what he wishes.. The IVA say otherwise....they say he's gotto pay it all to me...!so this should be in interesting situation when we come to it..

I have not got a 'hidden agenda' as my IP have stated but an interest in my disabled sons welfare...... What's the point claiming the DLA for him when he doesn't receive a penny of it?

Again NONE of this was explained to us or any other options discussed with us by our IP at our time of desperate need!!!! I feel they take full advantage!!!!

Hi nikkio.

I have seen IVAs involving DLA payments and as I have already stated I have found myself feeling physically sick at times.

Not too sure where you can go with this though if your IP is taking this stance and taking into account that we do not really know your full circumstances eg how long have you been paying your IVA, what other advice have you had, have you assets, including property etc?

Someone may be able to help further if you give us a little more information, however I can appreciate this may be difficult.

Think you must get genuine independent advice here and make sure its free if possible.

Just out of interest if you don't mind, what did the CAB advise and who's telephone number did they give you?

Pincer

Hi,

Thanks for your reply again,

I went to the CAB in person on Monday, they gave me THIER number to ring to speak to someone and if need be make an appointment. I have tried several times everyday since Monday and today (Friday) the CAB is closed for building works.

I don't really know what to do except go back there again on Monday morning?

Interesting debate here. It's easy to forget that the idea of an IVA is that it's the debtor's proposal, not the IP's. Nothing should be proposed that the debtor isn't happy with.

I think the DLA should appear as household income, but by the very nature of DLA, household expenditure should cancel it out completely.

I don't want to offend anyone, but although their intentions are admirable, the CAB's advice can be a little hit and miss in my experience. I think it's time you took this to the IP's licensing body, given the fact that they don't seem to be listening to your legitimate concerns.

Just a quick question...

How do I find out who my IP's Licensing Body is???
Do I just ask them??

Don't like to ask them as, if I ask a question all the lady says is "so your refusing to go ahead with you review" and the guy says I have a 'hidden agenda'.

Not very helpful or welcoming!!!

But if I have to ask I will!!!

Thanks