I have been awarded the whole of the house sale proceeds less debts and mortgage repayment.I am currently on severe incapacity benefit and son has disability living allowance and I have council tax benefit.I was going to use the sale of the house proceeds to try to buy or rent somewhere but will I still get benefits if I am awarded this huge amount and will they allow me to use the money to spend on a new place?What happens to my neefits?HELP?

Depends how much you will have after the sale , i think certain benefits allow 16k in saving although you would have to make enquries there, your son DLA will not come into any calculation.If you use the wikivorce library under the benefits sections you will see some web pages with advice, 1 of them is called en­title­d too have a look on that 1 too.

I am pretty sure you have a period of grace in which to use any lump sums to purchase a property. Probably a good idea to chat to the benefits advisor at your local CAB.

Hadenoughnow

I'm pretty sure that the house you live in is not counted as capital.

It is legitimate, within limits, to use your money to buy furniture and other essentials for your new home. You could go on holiday, for example to Benidorm, but not for three weeks at the Acapulco Hilton.

The rules concerning divesting yourself of capital are intended to stop people spending recklessly to bring themselves within the scope of Income Support/Jsa. It's really a matter of what is reasonable.

I have a feeling, like Hadenoughnow, that money from the sale of a house is disregarded for a time provided it is used to buy another. But the rules change all the time and you MUST confirm this with a CAB.

Mike

thanks everyone for your advice.I am going to ask at the citizens advice too.Thank you very much.