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  • FIRST POST
    english_bass
    Am I eligible for Job Seekers Allowance if I have savings?
    • #1
    • 18th Dec 10, 8:28 PM
    Am I eligible for Job Seekers Allowance if I have savings? 18th Dec 10 at 8:28 PM
    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,
    Last edited by english_bass; 18-12-2010 at 8:30 PM.
Page 1
    • richard9991
    • By richard9991 18th Dec 10, 8:31 PM
    • 1,599 Posts
    • 863 Thanks
    richard9991
    • #2
    • 18th Dec 10, 8:31 PM
    • #2
    • 18th Dec 10, 8:31 PM
    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,
    Originally posted by english_bass
    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
    • By jamespir 18th Dec 10, 8:33 PM
    • 18,729 Posts
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    jamespir
    • #3
    • 18th Dec 10, 8:33 PM
    • #3
    • 18th Dec 10, 8:33 PM
    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
    • By Indie Kid 19th Dec 10, 12:32 AM
    • 21,641 Posts
    • 29,331 Thanks
    Indie Kid
    • #4
    • 19th Dec 10, 12:32 AM
    • #4
    • 19th Dec 10, 12:32 AM
    Anything above 6k - you lose £1 a week for every £250 over £6k. Over 16k - you get nothing.
    Sealed pot challenge #232. Gold stars from Sue-UU - £75.29 banked
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    • seven-day-weekend
    • By seven-day-weekend 19th Dec 10, 8:37 AM
    • 27,109 Posts
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    seven-day-weekend
    • #5
    • 19th Dec 10, 8:37 AM
    • #5
    • 19th Dec 10, 8:37 AM
    Anything above 6k - you lose £1 a week for every £250 over £6k. Over 16k - you get nothing.
    Originally posted by sh1305
    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.
    Last edited by seven-day-weekend; 19-12-2010 at 8:39 AM.
    To love someone is to learn the song in their heart and to sing it to them when they have forgotten it
    'I believe in Christianity as I believe that the sun has risen. Not only because I see it, but because I see everything by it': C.S. Lewis
    St. Augustine — 'In essentials, unity; in non-essentials, liberty; in all things, charity.'
  • english_bass
    • #6
    • 19th Dec 10, 1:06 PM
    • #6
    • 19th Dec 10, 1:06 PM
    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.
    Originally posted by seven-day-weekend
    Thank you.
    • Gary1963
    • By Gary1963 19th Dec 10, 5:49 PM
    • 152 Posts
    • 120 Thanks
    Gary1963
    • #7
    • 19th Dec 10, 5:49 PM
    • #7
    • 19th Dec 10, 5:49 PM
    Anything above 6k - you lose £1 a week for every £250 over £6k. Over 16k - you get nothing.
    Originally posted by sh1305

    To get a £1 a week for every £250 would require a interest rate of 20.8% after tax! We wish!!!
    • Indie Kid
    • By Indie Kid 19th Dec 10, 7:14 PM
    • 21,641 Posts
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    Indie Kid
    • #8
    • 19th Dec 10, 7:14 PM
    • #8
    • 19th Dec 10, 7:14 PM
    To get a £1 a week for every £250 would require a interest rate of 20.8% after tax! We wish!!!
    Originally posted by Gary1963
    You forgot the £6k, too.
    Sealed pot challenge #232. Gold stars from Sue-UU - £75.29 banked
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    • sammyjammy
    • By sammyjammy 19th Dec 10, 7:43 PM
    • 3,919 Posts
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    sammyjammy
    • #9
    • 19th Dec 10, 7:43 PM
    • #9
    • 19th Dec 10, 7:43 PM
    To get a £1 a week for every £250 would require a interest rate of 20.8% after tax! We wish!!!
    Originally posted by Gary1963
    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
    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
    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.
    Originally posted by Banana123
    Totally agree
  • Banana123
    Also I read on the website turn 2 us .org

    that any money from a sale of a house DOES NOT COUNT as capital when claiming benefits if you intend using it towards another house.

    Oh right, but if you havent got a first house yet, and have been saving towards it, then tough luck, you get to live off your savings.

    I just do not understand how this can be realistic as it is SO unfair on many people. It is so wrong and its disgusting. It is encouraging people to go and get huge mortages- and discourgaing people from saving for large deposits, why bother saving for a large deposit if this is the reward. Its lunacy. But then again the bankers are in charge of the government.
    Last edited by Banana123; 07-03-2011 at 7:28 PM.
    • Russe11
    • By Russe11 7th Mar 11, 8:08 PM
    • 1,170 Posts
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    Russe11
    The last thing they need to be doing at the moment is encouraging people to be buying into the housing market if they are having to claim benefits.
  • Banana123
    If someone has a house they arent expected to sell that house to live off the money, So why if someone is SAVING to get their first house - saving for a decent deposit - why are they expected to live off their savings. That person is even worse off than the person with a house!

    That is encouraging me to go get a mortage with as little deposit as possible. Because saving for a decent one equals punishment. And thats what I will be doing once I am working again. Because being prudent is stupid, obviously. It pays to get into debt and not save - just look at the 0% rates for savers and this stupid benefit rule. yes I do blame the government and the bankers.
    Last edited by MSE ForumTeam3; 17-04-2015 at 11:24 AM. Reason: Quoting deleted post
    • seven-day-weekend
    • By seven-day-weekend 7th Mar 11, 10:45 PM
    • 27,109 Posts
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    seven-day-weekend
    You can't take a brick out of a house and buy groceries with it.

    You can take £20 from your savings to buy groceries.

    That's the reason.
    To love someone is to learn the song in their heart and to sing it to them when they have forgotten it
    'I believe in Christianity as I believe that the sun has risen. Not only because I see it, but because I see everything by it': C.S. Lewis
    St. Augustine — 'In essentials, unity; in non-essentials, liberty; in all things, charity.'
  • Banana123
    Yes you can sell your investment. If money saved for a house deposit is considered money to live off during hard times, then its only logical that the house itself is seen as an investment and can be sold to get money to live off.

    Do you not see the double standard? That people not even on the property ladder are being punished.
    Last edited by Banana123; 07-03-2011 at 11:21 PM.
  • melbi_uk
    To the last 3 posters, get real!

    Why should the state subisidise someone with 20K sitting in the bank?

    The state allow a 6 month period of JSA claims if you have the NI history and they don't look at savings.

    After that, its down to you to look after yourself.

    But don't worry, blame the bankers, blame the government, blame MP expenses, how about Libya?!

    Its not your fault, poor you!

    D70
    Originally posted by dseventy

    I would have thought 6 months is plenty of time to find new employment, even in today's climate, so what is all the fuss about?
    • Sharon87
    • By Sharon87 8th Mar 11, 12:32 AM
    • 3,356 Posts
    • 2,805 Thanks
    Sharon87
    I would have thought 6 months is plenty of time to find new employment, even in today's climate, so what is all the fuss about?
    Originally posted by melbi_uk
    Agree. Anyway even if you got a mortgage and went on benefits, you aren't entitled to help towards the mortgage cost - not from state benefits anyway. Whereas renting and being on JSA you get housing benefit.

    If you can't find a job within 6 months how are you going to be able to afford to run a house. Once you get another job you just continue to save. I assume you've worked for past few years if you have that amount saved up, so you'll be entitled to 6 months contributions based JSA anyway. Savings aren't just there for house deposits they're suppose to be there for back up, say if you lose your job. You may need to use some anyway as JSA may not be enough for your outgoings.

    Hope you get a job soon and make sure you get contributions based JSA. Also if you rent, if your savings are less than 16k you can still get a bit of housing benefit/council tax benefit.
    • seven-day-weekend
    • By seven-day-weekend 8th Mar 11, 8:32 AM
    • 27,109 Posts
    • 49,607 Thanks
    seven-day-weekend
    Yes you can sell your investment. If money saved for a house deposit is considered money to live off during hard times, then its only logical that the house itself is seen as an investment and can be sold to get money to live off.

    Do you not see the double standard? That people not even on the property ladder are being punished.
    Originally posted by Banana123
    You can. But why should you? It is your home and you have to live somewhere.

    Whereas your savings are just that, savings . Also remember that you can have £6k before any savings are taken into consideration, and up to £16k before you lose all entitlement.

    Double standard? No I don't think so. One way means losing your home, the other way is just spending money you have saved and can save again when your situation improves.
    To love someone is to learn the song in their heart and to sing it to them when they have forgotten it
    'I believe in Christianity as I believe that the sun has risen. Not only because I see it, but because I see everything by it': C.S. Lewis
    St. Augustine — 'In essentials, unity; in non-essentials, liberty; in all things, charity.'
  • Arg
    You can always sell your house then buy a new house later with that reasoning.
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