Hi All and just a query, We have lost family allowance and our payments have increased.

[pseaman66]

Hi All and just a query,
We are in our finale year of our IVA and I have advised Money Plus that we no longer get family allowance for our youngest, who is 17 years of age an is no longer in full time education. She is still very much dependent on us as she only has a part time job and does a few hours a week.
Our IVA has increased from £817 to £977.
So not only have we lost the £82 a month Family Allowance the Iva has increased by £160 making us £242 a month worse off. Is this correct. With only 10 payments left to make we will struggle through as we don't want the IVA to fail in the final year. Just wondered if anyone else has had a similar situation.

[lifenoteasy]

IVA companies struggle with the legal complexities of children.

Irrespective of whether you receive family allowance you are still financially liable for them until they are 18 (19 in some cases) or unless they move out.

They still cannot enter into a contract etc.

You need to be quite forceful to make the point up to and including complaining to the insolvency service on the basis that they are ignoring what is some simple legalities.

[lifenoteasy]

Additionally the 2014 Childrens Act goes up to 25.

[relieved33]

My understanding is thatyoung people need to be in education, apprenticeship or full employment which is perhaps what the iva company are basing this on? Has it gone up by 160 as your allowances are now just based on 2? I guess they are expecting your child to contribute £60 a week if so which seems a lot to me. We had allowances for 3 although our child was in full time education, had bus fares too and dinner money which outweighs family allowance.

[lifenoteasy]

Taking a child's income into account would mean enforcing a contract - which in most circumstances cannot be enforced or implied until they are 18.

The parent with care or parental responsibility has the legal responsibility to support them in employment or not if they are not at college etc.

[relieved33]

Through my employment I see numerous young people who are not supported financial by their parents aged 16+, why would family allowance cease at this age for some if it was the case?

If any young person can only find a few hours a week work, they should be in full time education in my opinion at whatever level is appropriate for them.

[lifenoteasy]

It's called social engineering.

If the government had their way no one under 25 would be able to claim benefits.

There are compensatory mechanisms in place based on a number of factors.