Am I eligible for Job Seekers Allowance if I have savings?

english_bass
english_bass Posts: 22 Forumite
edited 18 December 2010 at 9:30PM in Benefits & tax credits
Hello,

Unfortunately I have recently been made unemployed, but prior to that I had worked hard to save over £10000 to go towards a future flat deposit. I also have a couple of ISA's worth around £5000.

Question - whilst looking for a new job am I eligible to claim job seekers allowance while these savings are in the bank?

I'm worried if you have a certain amount saved you cannot claim? If this is the case if I spent some of the money could it get round the rule?

Thanks in advance,
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Comments

  • richard9991
    richard9991 Posts: 1,618 Forumite
    english_bass wrote: »
    Hello,

    Unfortunately I have recently been made unemployed, but prior to that I had worked hard to save over £10000 to go towards a future flat deposit. I also have a couple of ISA's worth around £5000.

    Question - whilst looking for a new job am I eligible to claim job seekers allowance?

    I'm worried if you have a certain amount saved you cannot claim? If this is the case if I spent some of the money could it get round the rule?

    Thanks in advance,
    if you have paid enough national insurance in the correct years then you will be able to get contribution based jsa for 6 months after that you may be entitled to some income based jsa
  • jamespir
    jamespir Posts: 21,456 Forumite
    it depends on the asmount of savings you have not sure of the limits but the job centre should be sable to tell you
    Replies to posts are always welcome, If I have made a mistake in the post, I am human, tell me nicely and it will be corrected. If your reply cannot be nice, has an underlying issue, or you believe that you are God, please post in another forum. Thank you
  • Indie_Kid
    Indie_Kid Posts: 23,077 Forumite
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    Anything above 6k - you lose £1 a week for every £250 over £6k. Over 16k - you get nothing.
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  • seven-day-weekend
    seven-day-weekend Posts: 36,755 Forumite
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    edited 19 December 2010 at 9:39AM
    sh1305 wrote: »
    Anything above 6k - you lose £1 a week for every £250 over £6k. Over 16k - you get nothing.

    These savings amounts only apply to INCOME-based Benefits. The OP should be eligible for Contribution-based JSA for six months (if they have been working and paying NI for the last few years), and the savings limits do not apply to this.

    If they have not found employment after six months and have to go onto Income-based JSA, then the above savings limits will indeed apply.

    Spending money unneccessarily will not work as it could be classed as Deliberate Deprivation of Capital and you will be treated as though you still have the money.
    (AKA HRH_MUngo)
    Member #10 of £2 savers club
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  • english_bass
    english_bass Posts: 22 Forumite
    seven-day-weekend wrote: »
    These savings amounts only apply to INCOME-based Benefits. The OP should be eligible for Contribution-based JSA for six months (if they have been working and paying NI for the last few years), and the savings limits do not apply to this.

    If they have not found employment after six months and have to go onto Income-based JSA, then the above savings limits will indeed apply.

    Spending money unneccessarily will not work as it could be classed as Deliberate Deprivation of Capital and you will be treated as though you still have the money.

    Thank you.
  • Gary1963
    Gary1963 Posts: 287 Forumite
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    sh1305 wrote: »
    Anything above 6k - you lose £1 a week for every £250 over £6k. Over 16k - you get nothing.


    To get a £1 a week for every £250 would require a interest rate of 20.8% after tax! We wish!!!
  • Indie_Kid
    Indie_Kid Posts: 23,077 Forumite
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    Gary1963 wrote: »
    To get a £1 a week for every £250 would require a interest rate of 20.8% after tax! We wish!!!

    You forgot the £6k, too.
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  • sammyjammy
    sammyjammy Posts: 7,388 Forumite
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    Gary1963 wrote: »
    To get a £1 a week for every £250 would require a interest rate of 20.8% after tax! We wish!!!

    Its not supposed to represent the interest you get on your savings, its called tariff income and represents what the governement think you should spend out of your savings instead of relying on benefit.
    "You've been reading SOS when it's just your clock reading 5:05 "
  • Banana123
    Banana123 Posts: 4 Newbie
    This makes em very angry.

    This is SO wrong!!!

    If someone owns a house they are allowed JSA (income tested). But if they havent yet got on the property ladder - but have been saving and saving towards it, then they get kicked in the teeth and punished. And their savings are essentially taken away from them and any chance of getting a house.

    totally stinks.
  • AdaptiveSequence
    AdaptiveSequence Posts: 51 Forumite
    Banana123 wrote: »
    This makes em very angry.

    This is SO wrong!!!

    If someone owns a house they are allowed JSA (income tested). But if they havent yet got on the property ladder - but have been saving and saving towards it, then they get kicked in the teeth and punished. And their savings are essentially taken away from them and any chance of getting a house.

    totally stinks.

    Totally agree:mad:
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