Child benefit

[Beans on Toast]

Morning all, woke up again with another question (as always). Our income is made up of child benefit and tax credits for our one daughter who is 14 this year. What happens when she either leaves school or goes on to higher education?

I can't believe we have only thought of this now. There must be a lot of people in the same position. Please don't think we see our daughter as a form of income, it will obviously have a big impact on our I&E.

[Jo Rolland]

You will continue to qualify for Child Benefit if you have a child under 16, a young person under 19 (under 20 in some cases) who is either studying in full-time education (A level or equivalent) or an approved training programme or
a 16 or 17 year old who recently left full-time further education or approved training and has registered for work or training with the Careers or Connexions Service or similar.

[Beans on Toast]

Thanks Jo, don't realse just how much changes in 5 yrs (possibly 6) will know on Monday!

[Jo Rolland]

You are welcome.

[MelanieGiles]

Surely this issue was discussed with you by your IP before the agreements were finalised? It is a really important point for clients who have teenage children who may leave education during the course of an IVA, as this could result in a significant drop in income.

[Beans on Toast]

Morning Melanie, just seen your post. No, nothing was ever discussed with us about this issue, as it stands at the moment, she will definitely be going into further education. Trouble is, we all know how quickly things change in kids heads!
I know this would be towards the back end of the IVA, but we also have a clause that when our car finance is finished, this will then be payed into our monthly agreement. This is because of very little chance of any equity in our property at the end of the arrangement, does this sound familiar?

[MelanieGiles]

I think that you will be OK, because if your IP is using standard IVA protocol, this gives him/her discretion to reduce your payments by up to 15% without the sanction of creditors - does this clause sound familiar to you?

It is usual for the saving on car finance payments to be included, so long as you feel that the car you have will last five years. My policy is to take a view on that point depending upon the age of the car and mileage incurred, as it is not always suitable for every client. I assume that your IP discussed this with you when the proposals were being drafted.

[Beans on Toast]

Once again Melanie,no. The only discussion was with regards to the payment going into the IVA. The car we have is 5 yrs old, it is in good condition now, hopefully it will see us through!

Not wanting to slag off our chosen company, wish we had gone with someone like your good self for that personal touch.

[MelanieGiles]

I am sure that your IP is doing just fine BOT - but I do feel that this type of work requires very close contact with the client in order to get right in the first place.