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    • MrLeo
    • By MrLeo 10th Sep 17, 7:52 PM
    • 4Posts
    • 1Thanks
    Savings threshold question.
    • #1
    • 10th Sep 17, 7:52 PM
    Savings threshold question. 10th Sep 17 at 7:52 PM
    Hey guys. I just joined today !

    i have a question about savings and how that can affect benefits such as Income based JSA or UC etc. So far, i know that savings of £6000 or less does not affect anyone's money. They get the highest rate as long as it's no more than 6000. But what happens if someone is on the borderline and they may possible go up and over that frequently?

    So if someone had, say, £5,900 when they first claim IB JSA or even at any other point in the claim. As far as i understand , this is disregarded and doesn't affect the person's rate of maximum benefit pay? But then say after they receive their first payment of, say, IB JSA of £146 and now they have £6046 in the bank. Do they have to phone up or say that they are now over the 6000 and have to declare that and have the rate of award dropped?

    then say another week goes past and they have , say, the phone bill and this costs, say, £70. After they pay that, they are now back to £5976. Do they need to phone up again and say its now again under the £6.000 to get back the full IB JSA again? Then they get their next payment of JSA £146 and they are back over the 6000 because of that... .and so on and so on.

    basically what happens if you are close to the borderline and by virtue of receiving your payments, then paying a bill, food, expenses, receiving another payment etc, you are constantly hopping a little bit over and a bit under that 6,000 threshold?

    I know you have to have a cutoff point somewhere, but in a situation like that, it seems a bit confusing as to what you'd do or what should happen? I'm not in this situation, but it makes you think that you'd rather try and spend some of your savings in the meantime to keep you away from the £6,000 limit to avoid what might be hassle?
Page 2
    • epitome
    • By epitome 12th Sep 17, 9:53 PM
    • 3,155 Posts
    • 1,914 Thanks
    On the basis that you both receive ESA Conts at 109.65 or 219.30 a fortnight

    You saving up a nest egg over £6000 or over £16,000 to buy a van will not affect ESA Conts in any way.

    But if either of you drop out of the Support Group, you may find yourselves moving onto ESA Income Related, and then your savings over £6000 and over 16,000 will affect your ESA IR claim.

    If you do phone up, and ask for both your claims my find out if either of your claims have something under the ESA IR heading.... you should tell ESA how much your total savings are for both of you, especially if they go over £6000 or £16000. But this will not stop you from getting 219.30 a fortnight, that is guaranteed to continue as long as you both stay in Support Group.

    If you were to drop out of the Support Group and you had to rely on means tested ESA, then you should change the ESA IR to Pension Credit at your State Pension age of 66, your partner could keep his ESA Conts running.

    If your partner was the one to drop out of Support Group, then Your ESA will stop at age 66 anyway so you would be looking at Pension Credit anyway.
    Last edited by epitome; 12-09-2017 at 10:00 PM.
    • epitome
    • By epitome 12th Sep 17, 10:28 PM
    • 3,155 Posts
    • 1,914 Thanks
    Do you recieve a pension now?
    Your Husband receive a pension now?

    How much are they? Gross figures please.
    Does DWP know about them?
    Are they Health Insurance Payments (these can be disregarded on ESA)
    As you both receive 219.30 a fortnight, the DWP is not taking into account any large pension, there is an £85 disregard

    If you phone tomorrow, make sure you ask if they know you have pension income...
    • epitome
    • By epitome 13th Sep 17, 8:44 PM
    • 3,155 Posts
    • 1,914 Thanks
    So therefore your 2 private pensions total less than £85 per week Gross?
    and your ill health pensions are being disregarded completely?

    Otherwise there is a problem with your claim.

    If you don't know, you should find out.
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