Mortgage interest

Folio

Can someone tell me please if you will get help with mortgage interest when you are receiving contribution based JSA after january when the government reduce the waiting time from 39 weeks to 13 weeks?

I know that contributions based JSA only lasts for 26 weeks so can understand how at the moment you don't get any help unless you are on JSA income based, but this won't work after January will it?

suelees1

In this particular situation any mortgage interest would be paid by way of JSA (income based) so in actual fact you'd be getting both income based and contribution based

All means tested benefits are based on what the law says you need to live on which is called your applicable amount (or AA for quicker typing).

For a single person aged 25 or over, during the waiting period this AA would be 60.50pw.

After the waiting period if your mortgage interest is say £50 pw, this would now be added into your AA. Now the law says you need £110.50 pw to live on.

So you already have 60.50 JSA (CB) coming in but you need £110.50 pw. They'll therefore top up your JSA(CB) with £50 JSA (income based). You're not likely to get this income based in your hand as it's normally paid to the lender but it still means you have entitlement to it.

Once the contribution base ends after 26 weeks the whole £110 will be income based JSA

Hope this makes sense.

mummytofour

So in theory you could be getting JSA (cb) and ISMP while you OH is earning lots of money? (Just wondering, nothing aimed at the OP)

cw18

no, 'cos the JSA(I) part would take OH's income into consideration