trevor_1977

Savings And Job Seeker Sllowance

24 posts in this topic

I may be out of work soon ,and be forced to sign on but I am worried as I have been saving very hard for a deposit for something for the future,butwill I still get the dole as i have 23k saved up roughly .Even though unskilled I do not intend to be on the dole for long as I will find something no matter what it is .But will my savings be taken into account as it will be based on my contributions or do they take my savings into account as well which would be unfair .doe anyone know the answer to this for me please .

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You'll get 6 months contributory despite all your savings.

All the forms are geared towards the means-tested benefit, however, so you'll still have to give that information.

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I heard something on the news the other day when they were interviewing an older lady who was made redundant 13 months ago at 55 or so and couldn't get work. Sure they said that as she had over about 15k in savings, after 1 year or so of being jobless you lose all entitlements.

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[quote name='GeordieAndy' timestamp='1321802293' post='3183918']
I heard something on the news the other day when they were interviewing an older lady who was made redundant 13 months ago at 55 or so and couldn't get work. Sure they said that as she had over about 15k in savings, after 1 year or so of being jobless you lose all entitlements.
[/quote]

It's 6 months. Contribution based JSA is paid for 6 months (if you've been employed paying NI for at least 2 years prior to that), after 6 months are up it reverts to means testing.

Those with between 6 and 16k in savings receive some JSA, housing benefit, and council tax benefit but it would be reduced according to the level of savings.

If someone has 16k+ in savings they are not entitled to any means tested benefits (e.g. JSA, housing benefit, council tax benefit, free prescriptions etc.) and are expected to support themselves on their savings until they fall below the 16k limit. If they deliberately spend more than they have previously done to fall below that 16k limit then they could find themselves being prevented from claiming even though they have less than 16k - they could be considered to have deliberately disposed of money and that money will be treated as if they still had it (e.g. notional capital).

Eligibility for means tested benefits is also affected by living arrangements, i.e. living with a partner working full time may prevent someone from claiming anything at all.

If someone is in the process of buying a home to live in as their sole residence their savings for that can be disregarded for up to 6 months, however, I have no idea of how someone could prove that to the dole office if they hadn't already made an offer that had been accepted.

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I signed on for 6 months last year. You will get contributory JSA for 6 months regardless of your savings provided that you have made adequate NI contributions over the previous 2 years. If you are still signing on after six monts you will then have to reapply for income based JSA when you will have to divulge information about your savings. With 23K in the bank you will probably not be eligible for this - I think the current threshold is 16K plus. You will however be eligible for national insurance credits.

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Thanks guys this is very handy to know as i was very worried as i was thinking what was the point in doing the right thing by saving , thank you all very much for your help .if the worst happens it will be good to know for 6 moths i will be able to get contribution based allowance without being penalized ,but i will make bloody sure if needs be that i find work before 6 months is up .

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Sounds like it would be worth transferring your money from 'savings' into something else like premium bonds, shares, precious metals or something else than cash. This is what I am doing for retirement so that I can get full benefits as it looks to me that it is not worth buying a house or saving for a pension.

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[quote name='khards' timestamp='1321807028' post='3183999']
Sounds like it would be worth transferring your money from 'savings' into something else like premium bonds, shares, precious metals or something else than cash. This is what I am doing for retirement so that I can get full benefits as it looks to me that it is not worth buying a house or saving for a pension.
[/quote]

+1

This is the inequity of the way our benefits system is set up - if you wazzed your savings on property or some other asset, your JSA means testing process looks the other way. If you've saved hard, that money is going to be used by the state to justify not paying you benefits.

When I last had this a few years ago, the job centre staff were quite ambivalent about this - if you have it in cash, you "must" declare it. If you don't declare it, you will be assessed the same way that someone already owning a house would be assessed.

But that's wrong isn't it? [img]http://www.housepricecrash.co.uk/forum/public/style_emoticons/default/ph34r.gif[/img]

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[quote name='trevor_1977' timestamp='1321804727' post='3183955']
Thanks guys this is very handy to know as i was very worried as i was thinking what was the point in doing the right thing by saving , thank you all very much for your help .if the worst happens it will be good to know for 6 moths i will be able to get contribution based allowance without being penalized ,but i will make bloody sure if needs be that i find work before 6 months is up .
[/quote]

Ask for it as soon as you go in or you will need to fill in all the means-tested forms. I got a suspicious "Why?" and I just said that there was no way I would qualify for means-tested so wasn't going to try, that satisfied them so I just had to fill in the contributions form. The second time I did this (about six years on from the first) they alos seemed to have a lot less required interaction at sign-on, I got the impression that they didn't bother you much in the first few months anymore and just let you get on with looking for a job.

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[quote name='khards' timestamp='1321807028' post='3183999']
Sounds like it would be worth transferring your money from 'savings' into something else like premium bonds, shares, precious metals or something else than cash. This is what I am doing for retirement so that I can get full benefits as it looks to me that it is not worth buying a house or saving for a pension.
[/quote]
I've been doing this, some shiny stuff as well but for benefits it's not savings it's capital. So if it's traceable from your bank account then it counts. The want to see previous X months bank statements for JSA.

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Need to check with family that no trusts were set up for you or your partner as well.
If you're slightly over the limit buy fuel, pay off all bills, and do a large food shop. Keep all bills. Edited by Son of Taeper

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What I worry about is if I finally get a house, pay off the mortgage and fall ill in my later years unable to work for unknown time, no other assets (before unsubsidised pension age) - would I have to sell up and rent again?

(trying to justify carrying on renting lol)

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[quote name='zebbedee' timestamp='1322179608' post='3188828']
The want to see previous X months bank statements for JSA.
[/quote]
Do you know how many months?

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[quote name=''Bart'' timestamp='1323242857' post='3201243']
Do you know how many months?
[/quote]

HB requires two months, I doubt you will find anything definitive as if they have reason to be suspicious that you're concealing some assets they will ask for them going back earlier. I suggest you wear your old clothes 'Bart' and arrive smoking a very thin roll-up from which you keep the dog-end for later.

[quote]Most recent bank statements (covering most recent two months)[/quote]

[url="http://www.salford.gov.uk/hben-faq.htm"]http://www.salford.gov.uk/hben-faq.htm[/url]

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[quote name='Frank Hovis' timestamp='1323243269' post='3201248']
HB requires two months, I doubt you will find anything definitive as if they have reason to be suspicious that you're concealing some assets they will ask for them going back earlier. I suggest you wear your old clothes 'Bart' and arrive smoking a very thin roll-up from which you keep the dog-end for later.
[/quote]
:lol: My "around the flat" attire should suffice.

Hopefully this is all speculative on my part but I'm a compulsive saver and I don't fancy being penalized for it some time in the future.

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According to this MoneySavingExpert thread, up to 6 months statements plus ISA statements could be required for Income based JSA.

[url="http://forums.moneysavingexpert.com/showthread.php?t=1144527"]LINK[/url]

(Although that thread is 3 years old.)

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[quote name='khards' timestamp='1321807028' post='3183999']
Sounds like it would be worth transferring your money from 'savings' into something else like premium bonds, shares, precious metals or something else than cash. This is what I am doing for retirement so that I can get full benefits as it looks to me that it is not worth buying a house or saving for a pension.
[/quote]

Surely Premium Bonds and shares are classed as savings, just as cash is. PMs I don't know about but if they see you have disposed of your money on the quick just to get benefits, probably you're disallowed or even done for fraud. Personally I would not play it any way other than straight with them, yes I know it's very irritating but that's the law

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[quote name='inflating' timestamp='1323346139' post='3202621']
Surely Premium Bonds and shares are classed as savings, just as cash is. PMs I don't know about but if they see you have disposed of your money on the quick just to get benefits, probably you're disallowed or even done for fraud. Personally I would not play it any way other than straight with them, yes I know it's very irritating but that's the law
[/quote]

AFAIK the only things that are exempt are physical things you own (e.g. clothes, tv, a car, any precious metals) and property provided it is your only property and you live in it i.e. it is your home.

Also AFAIK, the only way it is legal to spend more money than you have previously spent on rent/food/bills is to buy a house to live in as your one and only home.

ETA: converting say 50k into PMs to claim benefits would be capital deprivation and fraud as inflating says though. Edited by rented

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[quote name='inflating' timestamp='1323346139' post='3202621']
Surely Premium Bonds and shares are classed as savings, [b]just as cash is[/b].
[/quote]
True, but cash in a shoebox at home doesn't show up on any bank statements.

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[quote name='rented' timestamp='1323375240' post='3203167']
ETA: converting say 50k into PMs to claim benefits would be capital deprivation and fraud.
[/quote]
If you did it all at once with that intention.

But if you bought say, £3000 worth every so often on the off chance of one day being made unemployed....

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[quote name=''Bart'' timestamp='1323449057' post='3204009']
True, but cash in a shoebox at home doesn't show up on any bank statements.
[/quote]

Indeed. Plus there can be up to 6k in the bank (level at which means testing kicks in) so as long as there isn't a particularly obvious paper trail as to where the rest went. Although I can't imagine many people in this day and age wondering why someone appeared to save so little.


[quote name=''Bart'' timestamp='1323449167' post='3204011']
If you did it all at once with that intention.

But if you bought say, £3000 worth every so often on the off chance of one day being made unemployed....
[/quote]

An insurance policy of sorts... would be a very good plan under the current means tested system. Edited by rented

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[quote name=''Bart'' timestamp='1323242857' post='3201243']
Do you know how many months?
[/quote]
Unfortunately not, it's been a long time since I got stung by them so I cant recall and it may well have changed now.

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If Shares, Investment Bonds etc are held in a Stocks and Shares ISA does this count as savings also to the means testing? I'm guessing funds held in a SIPP in what ever form are not as they can not be drawn on until retirement.

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[quote name='My Name Is ??' timestamp='1327345612' post='3239943']
If Shares, Investment Bonds etc are held in a Stocks and Shares ISA does this count as savings also to the means testing? I'm guessing funds held in a SIPP in what ever form are not as they can not be drawn on until retirement.
[/quote]

All savings you have, including Shares and Investment Bonds are taken into account. Anything over £6,000 is deducted from JSA up to £16,000 when you are no longer entitled. Pension plans are not important.


The best policy is to just declare everything that you have and let the DWP decided for you. It is really not worth lying and risking a criminal record.

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