My savings (balanced by 0% CCdebts) and partner's benefits...

absfabs

Hi, first post on here, please be kind.

My partner was laid off a few weeks back, had been self-employed subcontractor, working for the same firm for 18 months. Therefore not had any other work fora long time.

It looks dire, no work found so far, and because of previous self-employed status, no job seeker's allowance.

I work part-time, and now have to declare my savings for his assessment.

Have been a dedicated "card-tart" for a few years, I have approx £8000 debts on 0% credit cards, and the same in savings.

The question is, will they take my debts into account when i declare my savings? Or must I pay my cards off to have zero balance ?

I am not trying to cheat, we are up to our necks on my part-time income, it does not cover all our outgoings. I am doing extra hours, but can only do so much as health problems.

OH desperately looking for work, nothing going in his trade at present, that's why he got laid off. Looking and applying for other work, too, anything really.

Does someone on here know the answer to the savings balanced by debt question? Thanks in advance!

healy

When you say your husbands assessment do you mean he is claiming JSA and/or other means tested benefits? If it is a means tested benefits he is claiming all they are interested in is the savings that you have. They do not offset debts against savings.

absfabs

We aren't married but have joint household account and joined mortgage. When he registered with jobcentre, they asked him all my details.

He now received a letter from council concerning claiming a rebate on council tax, he is not aware that he claimed this, but may have been part of "the processing" as he described it, at the jobcentre. Felt totally humiliated by the whole process, by the way.

They included this form where they want copies of bank statements, saving accounts, etc.

Apart from house expenses and bills we had always kept our finances separate.

A rebate/discount/whatever on council tax certainly would help. How much savings would I be allowed to have? Can I call it zero if I have the same in debts? Do I need to pay of the cards and loose the interest?

He asked/claimed JSA but he is getting nothing.

mcc28_x

Hi,

Do you work less than 24 hours per week?

As a partner on the claim they will allow you to work less than 24 hours but take into account your earnings over £20 per week reducing JSA pound for pound.

In my experience JSA will not offset your debts against savings. £8000 worth of savings would not stop JSA although it may be reduced by £8 a week approx.

Paying down the debt with your savings - well JSA can deem the savings and still reduce JSA accordingley.

Might be worth going to CAB or Consumer Credit Council for help with debt repayment plans.

regards

Mark

Lord_Dante

Council tax benefit is also income based. They don't take into consideration what you have in debt compared to what you have in savings.

Statements and details of accounts are only requested when you're savings go over the limit where they start to affect your benefits so the amounts need to be exact so the right amount is taken off the benefits paid to you.

If you live with someone as a partner or if you're married the other persons income is taken into account for any income based benefit as well.

[Deleted User]

absfabs wrote: »

Hi, first post on here, please be kind.

My partner was laid off a few weeks back, had been self-employed subcontractor, working for the same firm for 18 months. Therefore not had any other work fora long time.

It looks dire, no work found so far, and because of previous self-employed status, no job seeker's allowance.

I work part-time, and now have to declare my savings for his assessment.

Have been a dedicated "card-tart" for a few years, I have approx £8000 debts on 0% credit cards, and the same in savings.

The question is, will they take my debts into account when i declare my savings? Or must I pay my cards off to have zero balance ?

I am not trying to cheat, we are up to our necks on my part-time income, it does not cover all our outgoings. I am doing extra hours, but can only do so much as health problems.

OH desperately looking for work, nothing going in his trade at present, that's why he got laid off. Looking and applying for other work, too, anything really.

Does someone on here know the answer to the savings balanced by debt question? Thanks in advance!

To put it as simply as possible they arent interested in anyones debts when assessing means tested benefits,they are interested in savings and anything between 6k and 16k reduces them,if you use the 8k savings to pay off the debts they will probably say you have "deprived" yourself of capital in order to get more in benefits and will base any award including the 8k as though you still had it in the bank.
How will they know this you may ask? They request bank statements :eek:

healy

If you have savings under £6000 they would not affect any CTB you may receive, between £6000 and £16000 it is reduced and over £16000 there would be no help. No you cannot call it zero because of your debts, as I said it is savings they are interested in.

absfabs

mcc28_x wrote: »

Hi,

Do you work less than 24 hours per week?

As a partner on the claim they will allow you to work less than 24 hours but take into account your earnings over £20 per week reducing JSA pound for pound.
Mark

No. it's more than 24h hours, and my earnings would probably considered high enough to support the 2 of us.

Having added up all our joint outgoings, mortgage, gas/electric, council tax, insurance, phone plus my personal ones (car, fuel, pension plan, union), there is hardly anything left for food. Not to mention his outgoings, such as vehicle lease (this fortunately will end in January), fuel and a £3000 debt (also 0% but no savings to cover, and 0% ends I think Feb).

I know other people are worse off, but can't help being worried sick.

Wished now I had paid my cards off when it first happened. Naively thought any assessment would look at both sides of a balance sheet.

absfabs

woodbine wrote: »

To put it as simply as possible they arent interested in anyones debts when assessing means tested benefits,they are interested in savings and anything between 6k and 16k reduces them,if you use the 8k savings to pay off the debts they will probably say you have "deprived" yourself of capital in order to get more in benefits and will base any award including the 8k as though you still had it in the bank.
How will they know this you may ask? They request bank statements :eek:

And if I do this, "deprive" them of my capital to lower my debt - it's my money after all, and always sensible to pay off one's debt! - how long would this d"deprived" capital be held against us?

Alternative: If I trickle 2000 (to get me <6000 savings) into joint account for our expenses/food/mortgage over next couple of months, will they reassess?
It goes completely against the grain, because I put this money aside to cover my cards. If I'm forced to spend it, then I will be in real debt, which apart from mortgage I have never been in my life.

In our relationship, I have always been the cautious one, earning less and spending less, and, I must admit, trying to keep my finances safe from his more risk taking approach to life and business.

I don't mean to blame him here, I would never have the guts to go self-emplyed, we just have different personalities.

absfabs

healy wrote: »

If you have savings under £6000 they would not affect any CTB you may receive, between £6000 and £16000 it is reduced and over £16000 there would be no help.

So it's still worth applying?

Oldernotwiser

The benefit system was never designed so that people could borrow money and then save it.